Once a year and for three days, bidders come from around the country to bid on delinquent tax debt of Polk County's citizens. I have never really been able to understand why our adjoining counties of Dallas, Warren, Jasper and Madison all by state law have to have their sales on the same days, as it seems like they could get more interest if they could choose a period other than that which Polk County sells theirs, but I'm sure there's wisdom behind such things.

According to The Des Moines Register's June 3rd article Homes on Overdue Tax List Lure Buyers to Des Moines, the number of parcels on the delinquent roll is up 890% from 672 last year to 5,984 this year. But that's OK according to our Treasurer, Mary Maloney, quoted in the piece, because that's "only 3.5% of all the county's tax collections." Maloney expects "a record tax sale."

I surmise then that the corollary is then a record number of real people are struggling to pay their taxes. These taxes, when sold to investors at the sale, generate 2% interest per month,(which can be bid down to 1% interest if there are multiple bidders) and interest accrues monthly. If the taxes aren't redeemed by the defaultor, the holder, who has to buy all subsequent taxes, can force a sale of the property which wipes out all other liens. Yikes! So what happens is that banks end up buying them in a lot of cases so their security doesn't get liquidated.

Once again, The Register points out that it's worse in Florida and California, which is likely small consolation for those facing default and 2% interest here in Polk County.