Cities and counties which previously delayed actions against delinquent real estate taxpayers are now being forced to sell tax liens to private firms so they can close gaps in their budgets and continue to provide basic services such as education, police and fire protection services to their communities.

In Detroit, tax-foreclosed parcels have been contributing to the high number of foreclosures in the city, which have surpassed 50,000 units.

In Shelby County, Tennessee, Debra Gates of the trustee’s office said that the office has been selling about four to six tax foreclosures a year. She added that tax foreclosures are being sold through foreclosure auctions.

In Lancaster County, Pennsylvania, five tax-foreclosed properties were sold so far this year. According to Deb Dochat, head of Lancaster’s tax claim bureau, residents are experiencing financial difficulties, but she does not see a sharp rise in tax delinquencies this year.

In Cuyahoga County, Ohio, property taxpayers are concerned about the correctness of their tax appraisals in the past few years after their auditor Frank Russo and his subordinates have been implicated in a bribery case involving private appraisal firm V.A.S. Enterprises.

Meanwhile, Amsterdam in New York has decided to handle its tax foreclosures after selling its tax liens to a private lien investor for two years.

Sheriff sales, foreclosed houses for sale and foreclosure auctions from mortgage foreclosures are also still increasing in many counties and cities.

In Ingham, Michigan, the number of sheriff sales in September increased compared to the previous month, but when compared to September 2008, the September sales marked a decrease. There were 98 units sold in September, down from the 136 units sold by the sheriff’s office in September 2008.

According to Eric Schertzing, treasurer of Ingham County, he is seeing an improvement in mortgage foreclosures in his county.

Meanwhile, in Lancaster County, 234 houses have already been sold during the first 4 of 7 scheduled sheriff sales, foreclosed houses for sale in 2009. According to the sheriff’s office, if the current pace of defaults and foreclosures continue, over 400 houses will be sold this year, a sharp increase from the 312 foreclosed units sold by the sheriff’s office in 2008.