Press Release  Tax Lien Purchaser Refunds Overcharges to Central Massachusetts Homeowners in AG Settlement

Boston — A company that specializes in buying and collecting on unpaid real estate tax debts will pay $125,000, including restitution, to approximately 100 homeowners located primarily in Central Massachusetts, to settle allegations that it collected unlawful fees in connection with its purchase of property tax liens, Attorney General Maura Healey announced today.

The assurance of discontinuance was filed today in Suffolk Superior Court between the AG’s Office and Stage One Investors LLC, a private business that purchases tax liens from municipalities. The settlement resolves allegations that Stage One required homeowners to pay excessive and unlawful fees in order to pay off the tax liens purchased by the company.

“No one should be permitted to take unfair advantage of homeowners struggling to pay their real estate taxes,” said AG Healey. “This settlement ensures that Stage One stops charging illegal and excessive fees and reforms its practices to be a better partner for our cities and towns.”

Many Massachusetts municipalities sell delinquent tax debts to private investors like Stage One. When municipalities sell these tax liens to private investors, the private investor buys not only the right to collect the tax debt, but also the right to proceed with foreclosure against the property if the homeowner fails to pay. These transactions are governed by a strict statutory scheme that limits fees and other amounts tax lien holders may charge homeowners to pay off the lien and stop tax foreclosure proceedings. The AG’s Office alleges that Stage One violated the law by charging excessive and unlawful legal fees to homeowners seeking to pay their tax lien debt.

The AG’s Office investigated Stage One after receiving complaints from homeowners and legal services attorneys that the company was placing unlawful restrictions on homeowners’ right to redeem their property. Today’s settlement addresses these practices and recovers full restitution for homeowners. In addition to Stage One’s payment of $125,000, the company will change its business practices to provide clear and fair information to homeowners seeking to pay off their tax liens and avoid tax foreclosure.

The matter was handled by AG Healey’s Consumer Protection Division Assistant Attorney General Lisa Dyen, Division Chief Max Weinstein, and Paralegal Gabrielle Crossnoe, with assistance from Senior Financial Investigator Shannon Roark and Investigator Marlee Greer of AG Healey’s Civil Investigation Division.  

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