HB 2381 Summary

• Allows county treasurers in counties with populations exceeding 900,000 to assign tax liens to third parties (assignees) with property owner authorization, payment of all taxes and fees, a surety bond, and registration information.

• Requires assignees to post and maintain a $500,000 cash or surety bond that indemnifies property owners and lienholders against damages from the assignee's wrongful failure to perform obligations.

• Permits property owners and assignees to enter into payment agreements that may include transaction costs (up to $400 for class three property), interest at rates prescribed by statute, and collection costs including attorney fees and foreclosure expenses.

• Requires assignees to provide 60-180 days' written notice by certified mail to the property owner and subordinate lienholders before filing a foreclosure action, and prohibits collection of foreclosure fees within 30 days of the notice.

• Establishes that foreclosure proceeds in excess of amounts owed to the assignee must be distributed according to lien priority, with remaining balance returned to the former owner, and requires assignees to release liens upon satisfaction following procedures for mortgage satisfaction.