Since the pandemic, property taxes have leapt to new highs in Ohio. Investors from Omaha to Chicago, meanwhile, have been buying up unpaid debt at record levels.
All around the state, county treasurers are selling more debt than ever. Cuyahoga County last month sold $18 million. Franklin County last year sold $10 million. Lucas County is scheduling its first sale since 2008.
The investors buy up the debt, giving them the right to collect with up to 18% interest, although some treasurers negotiate for lower interest rates when they sell. Mortgage lenders have compared the transactions to payday loans, trapping cash-strapped borrowers in cycles of debt – with risk of foreclosure on the line…