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HomeMy WebLinkAbout8710 FERRIS Law Offices of Gabriel S. Berrafato & Associates 8720 Ferris Avenue Morton Grove,lllinois 60053-2843 Telephone (847)965-2233 Gabriel S. Berrafato Facsimile (847)967-2388 Marc S.Poner,of Counsel CONFIDENTIAL I ATTORNEY-CLIENT PRIVILEGE May 29, 2003 Larry N. Arft, Village Administrator Village of Morton Grove 6101 Capulina Morton Grove, IL 60053 In re: Schutz delinquent real estate taxes Dear Larry: Yesterday, May 28, 2003, I forwarded a letter with a memo regarding the above delinquent real estate taxes. Today, I received and do herewith hand you a letter from the law firm of Flamm & Teibloom, Ltd., which follows up my correspondence to you yesterday. Please note that the first installment of the 2002 real estate taxes were paid by AAAA Invest Company, of Terrell Hall, 2304 Chandana Trail, Valparaiso, Indiana 46383. The balance of the letter gives an explanation of what has to be done along with a summary of the tax deed process. Please review and get back to me at your earliest convenience. For purposes of clarification, money that was advanced by the Village in payment of back taxes, is not covered by the payment of the first installment of the 2002 taxes. I will explain this further when you call. Very truly yours, t. BRIE S. BERRAFATO GSB/amz Enclosure(s) c: David O. Erb, Treasurer/Fina 'ce D ector Tim Angell, Economic Develop - - t Director C:YnATH'WOR000CSW!LLAGE OF MORTON GROVENCOUISRIONSI5-CONDEMNATIONS-MULRLROPERIES 10-24-0218710 FERRIS&8701 UNCOLN-SCHUTZ-FILE 0107& 8134 CORRESNRFT LTR 052903 RE SCHUTZ DOC L A W O F F I C E S FLAMM & TEIBLOOM, LTD. tGt`V^t 20 North Clark Street•Suite 2200•Chicago,Illinois 60602 A+ n LOO Telephone(312)236-8400• Facsimile(312)236-7660 J�\tl v 2 Matthew A.Flamm JU• is 1,0�e Mel D.Teiebom E-mail:0;(6flamm-com•Want.:www.11amm.com t1t•n John W.Sunk*,Jr. °�M°`•0 Michael M.Grnpnae Christopher M.Marlin' Emmett R.McCanhy May 29, 2003 Nicholls V.Dizonno Or Corms[) — VIA FACSIMILE AND band Richard orla*n . +�� William M.[aytin Joanne F Hurley Mr. Gabriel Berrafato Henry W.Kenos(1907-199S) Gabriel S. Berrafato &Associates Arnold M.Flamm(1925-5999) 8720 Ferris Avenue -Also admitted in California Morton Grove, IL 60053-2843 RE: Village of Morton Grove Tax Deed Petitions Dear Mr. Berrafato: In our meeting on May 22nd, you requested that I set forth in writing the terms upon which we would handle tax deed petitions for the Village of Morton Grove. This letter is in response to that request. On March 13, 2003, Fitz Corporation purchased the delinquent 2001 taxes on nine contiguous parcels of real estate located within the Village of Morton Grove. We understand that Fitz Corporation did so at your request and for the benefit of the Village of Morton Grove. The initial redemption period will expire March 13, 2005. The holder of the Certificate of Purchase may extend the redemption period to a maximum of three years from the date of the tax sale. This means that the redemption period cannot be extended beyond March 13, 2006. It is your responsibility to make sure that the redemption period does not expire before we file our tax deed proceeding. Unless and until we are retained to handle this matter, we cannot be responsible for making sure that the redemption period is properly extended. At least thirty days before the end of the redemption period, you should either file a notice with the County Clerk extending the redemption period or contact us to find out how to do so. This enclosed summary will give you a general overview of the tax deed process. This is a complicated process, and it is not possible to give a complete examination of every detail in a letter. There may be unusual aspects to your matter which will not be dealt with in this letter, but we will advise you regarding those aspects as they arise. TOTAL P.02 Mr. Gabriel Berrafato May 29, 2003 Page 2 Our fee for handling an uncontested tax deed proceeding regarding these nine parcels will be $5,700.00. This does not include out-of-pocket costs, including the &es paid to the Clerk of Circuit Court, County Sheriff and Recorder of Deeds; the fee paid to the newspaper for publication of notice; the court reporter's fee; and miscellaneous charges for issuance and recording of the tax deed. These out-of- pocket costs vary widely, but I would estimate that they will total about $2,500.00. We require payment in advance of a retainer of$3,000.00 before beginning work on the matter. That retainer will be deposited in our Client Funds Account, because we are required to keep those funds which belong to our clients and which we have not yet earned separate from our own money. At the time we file the tax deed petition, the entire fee is earned; we will issue a bill for the fee and our out-of-pocket costs incurred to date, and we will draw a check from the Client Funds Account to our own account to pay that bill. If the amount of the bill exceeds the amount of your retainer, you must pay the balance within thirty days from the date of the bill. Any remaining funds on deposit will be held for expenses which may be incurred later, such as the court reporter's fee and charges for issuance and recording of the tax deed. The fees and costs referred to in the previous paragraph apply to a tax deed proceeding which is uncontested and not unusually complicated. Although most tax deed proceedings fit that description, there is a possibility of the matter becoming contested. In that event, we would charge the Village for our services at our regular hourly rates for all work done over and above the standard processing of a tax deed. Our rates range from$165 to $260 per hour, depending upon the experience level of the attorney performing the service. The tax bills you provided us show that the first installment 2002 taxes on all nine parcels were paid on April 18, 2003. I forwarded those bills to the General Counsel for the Cook County Treasurer with a request that we be advised as to who paid those taxes. I was informed that the taxes on all nine parcels were paid by AAAA Invest Company, Terrell Hall, 2304 Chandana Trail, Valparaiso, Indiana 46383. We look forward to representing you in this matter. When you are prepared to proceed, please send us your retainer, payable to "Flamm & Teibloom, Ltd.," and we will begin work on your case. Very truly yours, `tai 4 $ M the atthew A. Flamm SUMMARY OF THE TAX DEED PROCESS The holder of the Certificate of Purchase is required to prepare a notice addressed to the person whose name appears on the most recent tax bill, advising that person of the tax sale, the date when the redemption period will expire and the amount needed to redeem the property from the tax sale. Within four months and fifteen days after the date of the tax sale, that notice must be delivered to the County Clerk, who will mail it to the taxpayer by certified mail, together with the required fee. If you have not already prepared and filed that notice at the time you retain us to represent you, we will do so on your behalf. In order to obtain title to the property, a number of steps must be taken between five months and three months before the redemption period expires: 1. The holder of the Certificate of Purchase and his, her or its attorney must make a diligent inquiry to determine the owners, occupants and other persons interested in the property. We will obtain a report from a title insurance company, which will advise us of the owners and other interested parties (other than occupants). We will review recorded documents, telephone directories and voter registration records to obtain additional information. In some cases, we will review court files and/or probate records and we may call people who may have information. You must physically inspect the property during this period and report to us on what type of property it is and who, if anyone, is occupying or using the property in any way. You also should inquire of the occupants and/or persons in the area around the property to find out what they know about who owns or has any other interest in the property. The purpose of this is to make a complete list of names and addresses of persons or entities who own, occupy or have any other interest in the property. If we are not sure whether or not a person has an interest in the property, it is our practice to include that person in the list; there is no harm in serving notice on someone who may turn out to have no interest in the property, but failing to serve a person who does have an interest in the property can cause our tax deed petition to be denied. 2. We must then prepare and file a Petition for Tax Deed in the Circuit Court and pay the required fee. This is the beginning of a lawsuit which, if'successful, will result in your obtaining title to the property. 3. We also will prepare three sets of notices directed to the owners, occupants and other persons who have an interest in the property. One set of notices is given to the County Sheriff, who will attempt to serve those notices personally upon the owners, occupants and other interested parties, or by certified mail if they cannot be served personally. The second set of notices is given to the Clerk of the Circuit Court, who mails them to the same parties by certified mail. The third notice is published in the Chicago Daily Law Bulletin or in another newspaper of general circulation. The purpose of this notice is to advise people who may have moved or who otherwise may not receive notice. All three notices state that, if the property is not redeemed from the tax sale by the end of the redemption period, a tax deed may be issued to you and the owners, occupants and other interested parties may lose their rights in the property. 4. We also prepare and record in the Office of the Recorder of Deeds a notice which states that you have filed a tax deed petition. This warns anyone who might purchase the property that it is the subject of a tax deed petition and may be lost if it is not redeemed. These steps must be taken between five and three months before the end of the redemption period. Frequently, however, we take these steps within the last three months of the redemption period. Immediately before filing our tax deed petition, however, we file a notice with the County Clerk extending the redemption period to a date more than three months and less than five months from the data when we took these actions, so that we will have taken the necessary actions at the appropriate time. The Sheriff will advise us as to their progress in serving notices. If we determine that a party has not been served, we may direct the Sheriff to try again. Between two and three months before the end of the redemption period, we check the court file to determine whether all necessary parties have been served. If a party cannot be served, then that person is deemed to have been served by the notice published in the newspaper. If a party can be served, but if the Sheriff is unsuccessful in serving that party, it may be necessary to extend the redemption period further(if there is sufficient time to do so), to file an amended petition for tax deed and to serve a new set of notices. In most cases, however, this will not be necessary. Shortly after the redemption period expires, we check the records of the County Clerk to determine whether or not the property was redeemed. If it was redeemed, you will receive the redemption money, the tax deed proceeding will be dismissed and our work will be completed. If the property is not redeemed, we will prepare and file our Application for an Order Directing the County Clerk to Issue a Tax Deed. This is a lengthy document, supported by an affidavit and exhibits, which documents our compliance with the requirements for obtaining a tax deed. We then appear in court on the date which was specified in the notices, at which time the case will be assigned to a judge and scheduled for a "proveup hearing." The proveup hearing usually occurs between one and two months after the end of the redemption period. At the hearing, you (or the person who inspected the property on your behalf) will appear in court and testify under oath regarding your inspection of the property and the efforts you made to identify the owners, occupants and other interested parties. One of the lawyers in our firm will testify regarding our efforts to identify and locate those parties and the other steps we have taken to comply with the requirements for obtaining a tax deed. In more than 90% of all proveup hearings, none of the owners, occupants or other interested parties appear or object to the tax deed proceeding. They are,however, entitled to do so. At the end of the proveup hearing, if the judge finds that we have taken the actions required to obtain a tax deed, the judge will take the case "under advisement" until we present a transcript of the proveup hearing(which is prepared by the court reporter); proof that taxes for all years subsequent to those covered by the tax sale have been paid; and a proposed order. We will present those items to the judge, and the judge will then enter an order directing the County Clerk to issue a tax deed. We then prepare a tax deed and submit it to the County Clerk along with the original Certificate of Purchase and the order entered by the judge. The County Clerk then issues the tax deed, which we record in the Office of the Recorder of Deeds. Upon the recording of the tax deed, you become the owner of the property. By law, the tax deed must be issued and recorded within one year after the date when the redemption period expired. If this is not done, your Certificate of Purchase becomes null and void, and you have no right to obtain any refund or reimbursement of any of the monies you have paid. Thus, it is very important that the process be completed within one year after the date the redemption period expires. In order to obtain a tax deed, you are required to pay all taxes which have arisen after the taxes covered by your Certificate of Purchase. You may pay those taxes either before or after the redemption period expires. If you pay them before the redemption period expires (and pay a fee of $80.00 plus five percent of the amount paid), we can "post"your payment of your taxes on the judgment record of the tax sale. If the owner wishes to redeem the property from the tax sale, the owner also will have to redeem the subsequent years' taxes by paying the amount you paid plus a penalty of 12% per year (or fraction thereof) from the date when you paid those taxes until the date they are redeemed. This makes it more difficult for the owner to redeem the property, and also ensures that you receive a fair rate of return on the money you have expended to pay the taxes. If you do pay the taxes before the redemption period expires, please consult with us before doing so, so that we can make sure the taxes are posted immediately after you pay them. You are not allowed to post any taxes within thirty days before the redemption period expires, because doing so may unfairly confuse the owner who is trying to redeem the property from the tax sale. You may wait until after the proveup hearing to pay the subsequent years' taxes. This allows you to wait and see whether there are any problems with the tax r.ur ur deed proceeding or whether anyone appears to object to our tax deed petition. If not, you should pay the taxes immediately after the proveup hearing and provide us with receipts for the payment of those taxes. In a few cases, events occur which make it impossible to obtain a tax deed. The owner may declare bankruptcy; a federal tax lien may be recorded on the property; the property may be destroyed or rendered uninhabitable; or other facts may occur which make it either impossible or unreasonable to obtain a tax deed. In such cases, we can ask the court to declare the tax sale a "sale in error" and to order that the amount you have paid at the tax sale(including court costs and subsequent years' taxes, but not including attorneys' fees) be refunded to you. In some cases, interest is awarded on the amount refunded. If the property is at risk of being vandalized or destroyed while the tax deed proceeding is pending, you (or a person you designate) may be appointed as a receiver for the property. The receiver has the power to board up and secure the property, or in some cases to collect rent from tenants, while the tax deed proceeding is pending. If you think it may be necessary to have a receiver appointed, please consult with us regarding this possibility. (Doe MMACFORMS(Ncw Tao Deed Client Iv 524Vv3 9:36 AM) TOTAL P.0? VILLAGE OF MORTON GROVE -- 104961 Vendor:MB Financial Bank,NA 'Vendor No:54100 Vendor Acct No: 168904 Check Date: 03/14/2003 Invoice Number Date Description Check Amount: $174,022.46 Mar 2003-2 03/13/2003 Purchase8710 Ferris/delinquent taxes-TIF Invoice 174,022.46 I { VILLAGE OF MORTON GROVE tFINANCE DEPARTMENT 1 ` CHECK REQUEST FORM I Type or Print Legibly ` -'" ' <^7 Forward to Finance Department for Further Processing / ITO: FINANCE DEPARTMENT DATE: !�3 - o3 FROM: DEPARTMENT REQUEST FOR: i' ??CHECK IN THE AMOUNT OF $ 77/`lOils) ' ) ❑ EARLY PAYROLL CHECK NEEDED BY: ❑ NEXT WARRANT LISTING f./j, °_3 (OTHER DATE-EXPLAIN BELOW UNDER "ADDITIONAL COMMENTS") MAKE PAYABLE TTO:,/ NAME //? /1-749/,4C/47/ ADDRESS CITY STATE / ZIP ' r e. 0°4 / I i .I tc/ G ADDITIONAL COMMENTS: FINANCE DEPARTMENT USE ONLY VENDOR# ^t‘ CHECK# Itr.'�/ (74;71 DATE 7/�t--�3 AMOUNT / 1("1; C r)2 911 PAID FROM Y/r - ,g- e.5 i" /j✓:-(2.-] ACCOUNT DISTRIBUTION: ACCOUNT# AMO NT /j079—J VP" 0 /3/470.). 7‘ CHECK DISPOSITION: p'RETURN TO - 7/749/747 ❑ MAIL TO PAYEE REQUESTED BY: / APPROVED BY: j (SIGNATURE) (DEPARTMENT HEAD) FINANCE DEPARTMENT AUTHORIZATION VILLAGE ADMINISTRATOR AUTHORIZATION (NAME AND DATE) (REQUIRED IF NON-PAYROLL EXCEEDING$2000)