In the heart of the Midwest, a financial practice is gaining traction and sparking debate. Ohio‘s county treasurers have been selling delinquent property tax debts to investors, a trend that has reached record levels in recent years. This practice, while providing counties with much-needed revenue, has raised concerns about its impact on homeowners and the potential for predatory practices.
The sale of tax liens, legalized in Ohio in 1998, allows investors to purchase delinquent tax debts and collect on them, plus interest, from property owners. This system has seen a significant uptick in activity, with several of Ohio’s largest counties selling record levels of certificates. Cuyahoga County, for instance, sold $18 million worth of debt in June alone, a figure higher than any year on record.
Record Levels of Tax Lien Sales
Data from county treasurers’ offices reveals a stark increase in tax lien sales. Franklin County saw investors buy $10 million in delinquent property taxes last year, double the size of most years’ sales. In the Cincinnati area, both Hamilton and Warren counties sold more debt in 2026 and 2026 than any year over the past decade. Even Lucas County, which had not held a tax lien sale since 2008, is planning its return to the practice.
The system is designed to reward companies as property owners accrue more debt. Buyers of the initial liens also gain the right to purchase all subsequent lien certificates, which come with an 18% interest rate. In rare cases, investors can pursue foreclosure if debtors fail to pay. County treasurers argue that these sales are a critical enforcement tool, encouraging property owners to settle their debts or enter payment plans.
The Human Impact of Lien Sales
However, the endgames from lien sales can be devastating. Last year, Ashtabula County’s treasurer wrote a letter to Tax Ease Ohio, an affiliate of PVOne Capital, requesting debt forgiveness for a 73-year-old widower. The man had already paid $40,500 on a debt of nearly $21,000, with another $21,600 still owed. This case highlights the potential for financial hardship that lien sales can cause.
In response to such concerns, bipartisan lawmakers have proposed legislation to prohibit the sales of these liens on residential and agricultural properties. The effort is backed by mortgage lenders, who argue that the interest rates trap borrowers in a cycle of debt. Daniel Broering, CEO of the People’s Bank Co., criticized the practice, stating, “Property owners should not be subject to a predatory lien sale without their consent. It is a business model built around profit from displacement.”
Political Pressure and Consumer Protections
The political pressure comes as new assessments on homes have triggered significant increases in biannual tax bills for homeowners. More than 320,000 Ohioans have signed a petition to abolish property taxes in the state. Lawmakers have passed legislation expected to reduce property tax bills by billions over the next three years, indicating the issue’s prominence in the upcoming gubernatorial race.
Some counties have taken steps to protect residents. Cuyahoga County, for example, excluded properties with delinquencies less than $1,000, those worth less than $100,000, owner-occupied units in designated impoverished or marginalized communities, or those that claim the homestead exemption. Interest rates were also capped at 6%, although subsequent sales are legally required to be sold at 18% interest.
Defending the Practice
County treasurers have defended their practice, arguing that lien certificate sales are a last resort and a byproduct of growing delinquent tax debts. They maintain that most taxpayers settle up before their liens are sold and that the sales provide an efficient means for counties to collect what they’re owed. Jill Schiller, the Hamilton County Treasurer, noted that the sales have other uses, such as funding delinquent tax forgiveness funds and supporting land banks in acquiring dilapidated properties.
Without the sales, treasurers argue that they have two options when residents fail to pay their taxes: absorb the lost revenue, which is supposed to fund schools, police, and fire departments; or begin the slower and more costly route of foreclosure through the court system. “There will be consequences for taxpayers when others stop paying because of a lost enforcement tool,” said Stark County Treasurer Alex Zumbar.
The debate over Ohio’s tax lien sales continues to evolve, with investors, lawmakers, and homeowners all having a stake in the outcome. As the practice gains attention, the need for balanced solutions that protect both county revenues and homeowner rights becomes increasingly apparent.
