Quincy Tax Title Auction by Braintree Firm Earns City Nearly $700,000

Strategic Auction Alliance, a Braintree-based firm, helped the City of Quincy generate almost $700,000 from a tax title auction on Tuesday.

A month after helping Weymouth raise $800,000 in a similar auction, the firm was selected by Quincy officials to hold an auction featuring nearly 50 properties and tax titles worth $1.9 million.

Accounting for property owners paying off taxes ahead of the auction, some being withdrawn because of title issues and others that did not draw interest, often because of the size of tax bills compared to the property value, the city earned $409,750 in pre-auction redemptions and $268,301 in auction day sales.

“We’re pleased with the outcome of the Tax Title auction campaign," Strategic Auction Alliance Principal Tom Weitbrecht said in a statement. "Investor participation was excellent resulting in spirited bidding that added to the revenues generated."

Under Massachusetts General Law, municipalities can sell the receivable position of taxes owed to the highest bidder at public auction, as long as the minimum bid at least equals what the city is owed, according to the alliance. Winning bidders then in effect assume the city’s position and are entitled to 16 percent simple interest on the principal balance of the tax title account.  

Assignees can also initiate foreclosure proceedings if the debt, plus interest, is not repaid. This allows the city to immediately recoup money owed, avoiding the additional time and expense involved with tax foreclosure proceedings.