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March 15, 2010 (Regular Meeting) Page 18 60 3. The Cabarrus County taxes in the amount of approximately $2,700.00 need to be repaid to my client, either by the tax assessor, GMAC Mortgage or perhaps by Mr. Glass. We performed two detailed title searches prior 10 completing this foreclosure, and I also understand that Mr. Miller's attorney did the same; unfortunately, bankruptcy searches of prior owners in the chain of title are not part of a normal title search. Further exacerbating matters is the fact that North Carolina law does not require assignment of these notes and deeds of trust to be recorded, which is asinine in my opinion. As attorneys we should all work together to have that law changed. Also contributing to this mess was the fact that neither the Alstons nor CIT Group responded to any of our many letters and telephone calls to them regarding amounts owned and foreclosure proceedings. Had either of them bothered to pick up the phone and inform us as to what was going on, none of us would be in this situation. In any event, all of these factors contributed to a "perfect storm" that has resulted in the above situation. Your cooperation in further cleaning up this matter of record and in fairness to all parties is requested and greatly appreciated. Please contact me at 704-721-3500, ext. 102 at your earliest possible convenience after you have had a chance to review this matter in order to discuss final resolution, especially with regard the taxes owed to my client. Thank you for your assistance in this extremely important and time sensitive matter. Yours, MORETZ & SKUFCA, PLLC /s/ Zac Moretz Zachary M. Moretz cc: Research City, LLC (via hand delivery) Because the Alstons' bankruptcy was not discovered in the title searches and because the McAfees never legally owned the Piney Church Road property, Mr. Moretz urged the Board to consider refunding the taxes or to apply them to other real property Mr. McAfees own. He also responded to a variety of questions from the Board related to the process of buying of foreclosure property. Edward McAfee addressed the Board and acknowledged he is a commercial real estate broker and a property investor. He also urged the Board to consider applying the ad valorem taxes paid on the Piney Church Road property to other real estate he actually owns in Cabarrus County. Further, he offered to intervene on the Board's behalf should the refund be challenged. In response to questions from the Board, Mr. Koch advised he cannot confirm the legal historical ownership of the property without conducting a thorough title search. Mr. Moretz pointed out that Research City, LLC (McAfees) deeded the property back to the Alstons, the legal owners, by filing a quit claim deed to clean up the public record. Mr. Koch responded to a variety of questions from the Board related to: who has the authority to make the Commissioners pay if a refund is granted; can an agreement be drafted to protect the Board; can the County collect taxes in a bankruptcy situation; have the 2009 property taxes been paid; etc. Commissioner Mynatt expressed support for refunding the monies or applying them to other property owned by the McAfees. Vice Chairman Poole suggested this item be tabled for 30 days until more information can be obtained on the status of the 2009 property taxes and County's position/ability to collect the property taxes through a Chapter 13 bankruptcy proceeding if a refund is granted. Mr. Koch asked if title insurance was obtained when the McAfees purchased the property and which district is the bankruptcy is located in. Mr. Moretz reported insurance was not purchased and that the bankruptcy is in the western district. Mr. Moretz asked if tabling the item for 30 days would satisfy the action requirement set forth in N.C.G.S. 105-381(b). Mr. Koch advised that the Board is within its power to table this item if the taxpayer understands