Counties shall have a lien upon real estate within their boundaries for all taxes due thereon to the state, any governmental subdivision of the state, any municipal corporation, and any drainage or irrigation district. After any parcel of real estate has been offered for sale and not sold for want of bidders, the county board shall make and enter an order directing the county attorney to foreclose the lien for all taxes then delinquent, excluding any lien on real estate for special assessments levied by any sanitary and improvement district which special assessments have not been previously offered for sale by the county treasurer, in the same manner and with like effect as in the foreclosure of real estate mortgages, except as otherwise specifically provided by sections 77-1903 to 77-1917.

Annotations

Sheriff's deeds are specially covered by this statute and, unlike the provisions for tax certificates, there is no section establishing a presumption regarding service, as is true in the case of a treasurer's deed. Brown v. Glebe, 213 Neb. 318, 328 N.W.2d 786 (1983).
Procedure for foreclosure of tax liens, except as otherwise provided by tax foreclosure act, is the same as in the foreclosure of real estate mortgages. Madison County v. School Dist. No. 2, 148 Neb. 218, 27 N.W.2d 172 (1947).
In the foreclosure of tax lien, final confirmation of sale cannot be had until two years shall have expired from date of sale. County of Douglas v. Christensen, 144 Neb. 899, 15 N.W.2d 53 (1944).

(1) When land has been sold for delinquent taxes and a tax sale certificate or tax deed has been issued, the holder of such tax sale certificate or tax deed may, instead of demanding a deed or, if a deed has been issued, by surrendering the same in court, proceed in the district court of the county in which the land is situated to foreclose the lien for taxes represented by the tax sale certificate or tax deed and all subsequent tax liens thereon, excluding any lien on real estate for special assessments levied by any sanitary and improvement district which special assessments have not been previously offered for sale by the county treasurer, in the same manner and with like effect as in the foreclosure of a real estate mortgage, except as otherwise specifically provided by sections 77-1903 to 77-1917.

(2) Such action shall be brought within whichever of the following two timeframes is applicable:

(a) For real estate determined to be vacant and abandoned pursuant to subsection (3) of this section, the action shall be brought within nine months after the expiration of two years from the date of sale of the real estate for taxes or special assessments; or

(b) For any other real estate, the action shall be brought within nine months after the expiration of three years from the date of sale of the real estate for taxes or special assessments.

(3)(a) For purposes of this section, real estate may be considered vacant and abandoned if:

(i) The holder of the tax sale certificate or tax deed is a land bank as defined in section 18-3403; and

(A) The property is not occupied by the owner or any lessee or licensee of the owner;

(B) Utility service to the property, including, but not limited to, gas, electric, or water service, has been disconnected or delinquent for over one year;

(D) A building on the property is open and unprotected and in reasonable danger of significant damage resulting from exposure to the elements or vandalism;

(E) A building on the property is unsecure due to multiple windows and doors being boarded up or closed off, smashed through, broken off or unhinged, or continuously unlocked;

(F) The property has been stripped of copper or other materials or interior fixtures to the property have been removed;

(G) There have not been any recent efforts made to restore the property to productive use;

(H) There is a presence of vermin, uncut vegetation, or debris accumulation on the property;

(I) There have been past actions by the applicable municipality or county to maintain the grounds or a building on the property;

(J) The property has been out of compliance with orders of local housing officials; or

(K) Any other condition or circumstance reasonably indicating that the property is vacant and abandoned.

(b) The holder of the tax sale certificate or tax deed shall determine whether or not real estate is vacant and abandoned two years after the date of the sale of such real estate for taxes or special assessments.

(c) If the real estate is registered as vacant and abandoned pursuant to a vacant property registration ordinance adopted by a municipality, it shall be conclusive proof that such real estate is vacant and abandoned. If the real estate is not registered as vacant and abandoned pursuant to such an ordinance, the holder of the tax sale certificate or tax deed shall not be obligated to proceed under subdivision (2)(a) of this section, but may instead choose to proceed under subdivision (2)(b) of this section, and no deed subsequently issued to such holder shall be deemed invalid due to noncompliance with subdivision (2)(a) of this section. No action taken by a holder of a tax sale certificate or tax deed under subdivision (2)(a) of this section shall prohibit a subsequent action under subdivision (2)(b) of this section on the same real estate should it be determined that such real estate is not vacant and abandoned.

(d) If the holder of the tax sale certificate or tax deed determines real estate to be vacant and abandoned pursuant to this subsection, the holder shall submit an affidavit to the county treasurer affirming that the real estate is vacant and abandoned.

Annotations

1. Time limits

2. Miscellaneous

1. Time limits

A foreclosure action brought under this section must be brought within 6 months after the expiration of 3 years from the date of sale of any real estate for taxes. County of Seward v. Andelt, 251 Neb. 713, 559 N.W.2d 465 (1997).
Under this section, "time for redemption" is the three years immediately following a delinquent tax sale, and an action to foreclose a tax lien can only be brought within ninety days immediately after expiration of such time for redemption. Bish v. Fletcher, 219 Neb. 863, 366 N.W.2d 778 (1985), is overruled. County of Lancaster v. Maser, 224 Neb. 566, 400 N.W.2d 238 (1987).
Foreclosure of a tax lien must be brought within ninety days after the expiration of the right to redeem. In accordance with section 77-1837, such redemption right expires three years plus ninety days from the date of the original sale. Bish v. Fletcher, 219 Neb. 863, 366 N.W.2d 778 (1985).

2. Miscellaneous

Judicial foreclosure requires the holder of a tax certificate to foreclose on the lien for taxes in the district court of the county where the property is located. HBI, L.L.C. v. Barnette, 305 Neb. 457, 941 N.W.2d 158 (2020).
Where the successful bidder purchased a tax sale certificate by bidding down to a 1-percent undivided interest of property, its lien to be judicially foreclosed was limited to 1 percent of the property. Adair Asset Mgmt. v. Terry's Legacy, 293 Neb. 32, 875 N.W.2d 421 (2016).
This section requires an individual to act pursuant to section 77-1917 in order to redeem property during the pendency of a foreclosure action. Neun v. Ewing, 290 Neb. 963, 863 N.W.2d 187 (2015).
Authority to proceed under equity powers is limited by remaining provisions of tax foreclosure act. Madison County v. School Dist. No. 2, 148 Neb. 218, 27 N.W.2d 172 (1947).
In foreclosure under this section, court may refuse confirmation of sale where increased bid has been made after sale and before confirmation. County of Gage v. Beatrice Neb. Water Co., 147 Neb. 236, 22 N.W.2d 696 (1946).
This section is not the only avenue by which title to property sold at a tax sale can be obtained free and clear of previous liens. Knosp v. Shafer Properties, 19 Neb. App. 809, 820 N.W.2d 68 (2012).
A delinquent taxpayer may redeem a tax sale certificate after a foreclosure action has been filed. KLH Retirement Planning v. Cejka, 3 Neb. App. 687, 530 N.W.2d 279 (1995).

The foreclosure proceedings, provided by sections 77-1901 and 77-1902, shall be conducted as nearly as possible in the same manner, except in the following particulars: (1) In the foreclosure of a tax lien, as provided by section 77-1901, final confirmation of sale cannot be had until two years have expired from the date of the sale held by the sheriff in the foreclosure proceedings; or (2) in the foreclosure of a tax sale certificate or tax deed, as provided in section 77-1902, final confirmation of sale may be had immediately after the sheriff's sale.

Annotations

Confirmation cannot be had until expiration of two-year period, unless right to redeem is waived by owner or all persons having a legal interest in the land. County of Douglas v. Christensen, 144 Neb. 899, 15 N.W.2d 53 (1944).

In all foreclosure proceedings, including in the complaint, it is sufficient to designate the township, range, section, or part of section and the number and description of any lot or block by initial letters, abbreviations, and figures.

In describing improvements on leased land for such notice and proceedings, the words "Improvements Only Located Upon" shall precede the designation of such property as set out in this section.

Annotations

Purpose of this section is to reduce costs in the foreclosure of tax liens and tax sale certificates when more than one is held by the same party. County of Hall v. Engleman, 182 Neb. 676, 156 N.W.2d 801 (1968).
Under prior act, and reenactment of this section by 1943 act, the use of initial letters, abbreviations, and figures in describing real estate was expressly authorized. City of Scottsbluff v. Kennedy, 141 Neb. 728, 4 N.W.2d 878 (1942).
Plaintiff may join as many tracts as he sees fit, but each one constitutes a separate cause of action and must be separately stated and numbered. McNish v. Perrine, 14 Neb. 582, 16 N.W. 837 (1883).
Certificate of tax sale, together with subsequent taxes, constitutes one cause of action. Cushman v. Taylor, 2 Neb. Unof. 793, 90 N.W. 207 (1902).

The plaintiff may also, if desired, include as or make the real property described in the complaint a defendant and, if the owners of any such real property are unknown and cannot be found, may proceed against the real property itself, but in such case the service shall be as in the case of an unknown defendant.

Cross References

For proceedings against unknown defendants, see section 25-321.
For provisions for mailing copy of notice, see sections 25-520.01 to 25-520.03.

The tax sale certificate or tax deed, in foreclosure proceedings under section 77-1902, or a certificate of the county treasurer, as to the amount of unpaid delinquent taxes in foreclosure proceedings under section 77-1901, shall be presumptive evidence of all facts necessary to entitle the plaintiff to a decree for the amount appearing to be due thereon with interest at the rate required to be paid for redemption from tax sale.

In its decree, the court shall ascertain and determine the amount of taxes, special assessments, and other liens, interest, and costs chargeable to each particular item of real property, excluding any lien on real estate for special assessments levied by any sanitary and improvement district which special assessments have not been previously offered for sale by the county treasurer, and award to the plaintiff an attorney's fee, unless waived by the plaintiff, in an amount equal to ten percent of the amount due plus, for good cause shown, reasonable attorney's fees in excess of the ten percent, which shall be taxed as part of the costs in the action and apportioned equitably as other costs.

Annotations

Interest and costs are to be included in awarding an attorney fee pursuant to this section. The award of attorney fees is to be made in the decree of foreclosure, not in the order confirming the sale. Buffalo County v. Kizzier, 250 Neb. 247, 548 N.W.2d 753 (1996).

The court may in its decree order that any surplus proceeds of the sale of one item of real property shall be applied to the payment of taxes and costs against any other item of real property owned by the same defendant when no rights of a third person are affected thereby and may order that only so much of the real property, so owned by one defendant, shall be sold as may be necessary to satisfy all taxes and costs charged against all the real property owned by the same defendant.

Upon the expiration of twenty days from and after such decree, the plaintiff shall be entitled to an order of sale of the real property remaining unredeemed. This order of sale shall be issued only at the request of the plaintiff or the holder of an unredeemed lien and shall be issued within ten years from the date of the decree. After ten years from the date of the decree, (1) no order of sale shall issue, (2) the decree shall be deemed satisfied, and (3) no further action shall lie to enforce the lien of any taxes or special assessments included in the decree.

Annotations

Procedure contemplates sale of the lands if not redeemed. Madison County v. School Dist. No. 2, 148 Neb. 218, 27 N.W.2d 172 (1947).

(1) The sheriff shall sell the real property in the same manner provided by law for a sale on execution and shall at once pay the proceeds thereof to the clerk of the district court. Any governmental subdivision of the state, municipal corporation, or drainage or irrigation district to which any part of the taxes included in the decree of foreclosure is due may purchase any real property sold at sheriff's sale. The provisions of the law for the protection of the purchasers at tax sales shall apply to purchasers at foreclosure sales provided for in this section. The sheriff or officer conducting the sale shall not be entitled to any commission on the money received and paid out on foreclosure sales provided for herein.

(2) The sheriff or officer conducting the sale may, for any cause he or she deems expedient, postpone the sale of all or any portion of the real property from time to time until it is completed, and in every such case, notice of postponement shall be given by public declaration thereof by the sheriff or officer at the time and place last appointed for the sale. The public declaration of the notice of postponement shall include the new date, time, and place of sale. No other notice of the postponed sale need be given unless the sale is postponed for longer than forty-five days beyond the day designated in the notice of sale, in which event notice shall be given in the same manner as the original notice of sale is required to be given.

Annotations

The sheriff is required to collect the entire price bid at the judicial sale, not merely a percentage thereof. Buffalo County v. Kizzier, 250 Neb. 247, 548 N.W.2d 753 (1996).
As a general rule, property which is susceptible of being sold at a foreclosure sale in separate tracts should, if practicable, be sold in parcels, rather than as an entirety. It is within the discretion of the trial court to provide in a decree of foreclosure for the sale of property en masse, and such a sale will be sustained absent a showing of prejudice. Where the record does not show that the judgment debtor requested that the land be sold in separate tracts, he is not entitled as a matter of right to have the sale set aside because the land was sold en masse. County of Dakota v. Mallett, 235 Neb. 82, 453 N.W.2d 594 (1990).
Interest on money received by sheriff on bids at tax foreclosure sale belongs to beneficial owners of fund and not to clerk of district court. Bordy v. Smith, 150 Neb. 272, 34 N.W.2d 331 (1948).

The court shall, after the expiration of the time provided in section 77-1903 and on the motion of the plaintiff, examine the proceedings and, if they are found to be correct and if the subsequent taxes have been paid to date, in case the purchaser is not a land reutilization authority or a governmental subdivision of the state, a municipal corporation or an irrigation or drainage district interested in the distribution of the proceeds of the foreclosure sale, make and enter an order of confirmation of the sale, shall direct the disposition of the proceeds of the sale and order the sheriff to make and deliver to the purchasers, without further cost to them, a sheriff's deed for any real estate not redeemed; Provided, if a private purchaser at any sale held by the sheriff in tax foreclosure proceedings shall fail to pay the subsequent taxes levied and assessed against the property under foreclosure, any governmental subdivision of the state, municipal corporation or drainage or irrigation district, interested in the distribution of the proceeds of the foreclosure sale, may apply for and have issued to it a certificate of tax sale covering such subsequent taxes in the manner provided by sections 77-1809 and 77-1810, and, upon production of such certificate in the court conducting said foreclosure proceedings, such court may thereupon order confirmation of such foreclosure sale, notwithstanding the private purchaser has failed to pay the subsequent taxes levied and assessed against the property.

Annotations

Subsequent taxes that a purchaser at a sheriff's sale in the foreclosure of a tax certificate is required to pay before confirmation of the sale are limited to those levied and assessed on the property under foreclosure, i.e., taxes assessed and levied after commencement of the foreclosure proceeding. "Subsequent taxes" within the meaning of this section do not include taxes, whether general taxes or special assessments, that were assessed and levied prior to the commencement of the foreclosure proceeding. INA Group v. Young, 271 Neb. 956, 716 N.W.2d 733 (2006).
When there is no evidence that others are willing to pay more, a judicial sale will not be set aside on account of mere inadequacy of price, unless such inadequacy is so gross as to make it appear that it was the result of fraud or mistake, or to shock the conscience of the court. The district court must determine by unrestricted means whether at the sheriff's sale the price bid is adequate or whether at a subsequent sale more would be realized, and this court will not overturn its determination absent an abuse of discretion. County of Dakota v. Mallett, 235 Neb. 82, 453 N.W.2d 594 (1990).
Substantially increased offers made in open court before confirmation of sale are sufficient to authorize district court to deny confirmation and order a new sale. County of Gage v. Beatrice Neb. Water Co., 147 Neb. 236, 22 N.W.2d 696 (1946).
Title to land acquired by tax foreclosure in Nebraska was subject to attack in Missouri federal district court on jurisdictional grounds. Duke v. Durfee, 308 F.2d 209 (8th Cir. 1962).

Upon confirmation of the sale, the clerk of the district court shall certify to the county treasurer the year or years of the taxes for which the real property was sold. The county treasurer shall thereupon cancel the taxes for such years, and the proceedings shall operate as a release of such real property from all liens for the taxes included on the real property. The delivery of the sheriff's deed shall pass title to the purchaser free and clear of all liens and interests of all persons who were parties to the proceedings, who received service of process, and over whom the court had jurisdiction, excluding any lien on real estate for special assessments levied by any sanitary and improvement district which special assessments have not been previously offered for sale by the county treasurer.

From the proceeds of the sale of any real property, the costs charged thereto shall first be paid. When the plaintiff is a private person, firm, or corporation, the balance thereof, or so much thereof as is necessary, shall be paid to the plaintiff. When the plaintiff is a governmental subdivision other than a land bank, or is a municipal corporation or drainage or irrigation district, the balance thereof, or so much thereof as is necessary, shall be paid to the county treasurer for distribution to the various governmental subdivisions, municipal corporations, or drainage or irrigation districts entitled thereto in discharge of all claims, excluding any lien on real estate for special assessments levied by any sanitary and improvement district which special assessments have not been previously offered for sale by the county treasurer. When the plaintiff is a land bank, the balance thereof, or so much thereof as is necessary, shall be paid to the land bank.

Annotations

Attorney's fee taxed as costs is not distributable as tax revenue. Strawn v. County of Sarpy, 156 Neb. 797, 58 N.W.2d 168 (1953).

If a surplus remains after satisfying all costs and taxes against any particular item of real property, the excess shall be applied in the manner provided by law for the disposition of the surplus in the foreclosure of mortgages on real property. If the proceeds are insufficient to pay the costs and all the taxes, when the plaintiff is a governmental subdivision other than a land bank or is a municipal corporation or a drainage or irrigation district, the amount remaining shall be prorated among the governmental subdivisions, municipal corporations, and drainage or irrigation districts in the proportion of their interest in the decree of foreclosure. The proceeds of the sale of one item of real property shall not be applied to the discharge of a lien for taxes against another item of real property except when so directed by the decree for foreclosure under the circumstances set forth in section 77-1910. The lien on real estate for special assessments levied by any sanitary and improvement district shall not be entitled to any surplus unless such special assessments have been previously offered for sale by the county treasurer.

(1) Any person entitled to redeem real property may do so at any time prior to the institution of foreclosure proceedings by paying the county treasurer for the use of such holder of a tax sale certificate or his or her heirs or assigns the sum mentioned in his or her certificate, with interest thereon at the rate specified in section 45-104.01, as such rate may from time to time be adjusted by the Legislature, from the date of purchase to the date of redemption, together with all other taxes subsequently paid, whether for any year or years previous or subsequent to the sale, and interest thereon at the same rate from the date of such payment to the date of redemption.

(2) Any person entitled to redeem real property may do so at any time after the decree of foreclosure and before the final confirmation of the sale by paying to the clerk of the district court the amount found due against the property, with interest and costs to the date of redemption and, in addition thereto, when the real property has been sold at sheriff's sale to a purchaser other than the plaintiff, any subsequent taxes paid by such purchaser, as shown by tax receipts filed by such purchaser with the clerk of the district court, with interest at the rate specified in section 45-104.01, as such rate may from time to time be adjusted by the Legislature, from the date or dates of payment of such taxes, and also interest on the purchase price at the same rate, for the use of the purchaser, from the date of sale to the date of redemption. During the pendency of a foreclosure action any person entitled to redeem any lot or parcel may do so by paying to the court the amount due with interest and costs, including attorney's fees, provided for in section 77-1909, if requested in the foreclosure complaint. Within thirty days after receipt of payment of all amounts due, the holder of the tax sale certificate shall dismiss its claim in the foreclosure proceeding with respect to any redeemed tax sale certificate. The holder of the tax sale certificate shall be required to provide the county treasurer with written notice that a foreclosure suit has been instituted and provide the county treasurer with an affidavit setting forth the costs incurred in the foreclosure action and indicating whether attorney's fees were requested in the foreclosure complaint.

(3) The person redeeming any lot or parcel shall be required to provide the county treasurer with an appropriate receipt evidencing the payment to the court of the amount due with interest and costs and the holder of the tax sale certificate shall file with the county treasurer notice of its dismissal of the claim in the foreclosure proceeding.

Cross References

For redemption from foreclosure generally, see section 25-1530.

Annotations

Section 77-1902 requires an individual to act pursuant to this section in order to redeem property during the pendency of a foreclosure action. Neun v. Ewing, 290 Neb. 963, 863 N.W.2d 187 (2015).
County may not proceed in foreclosure action under this statute. County of Polk v. Wombacher, 229 Neb. 239, 426 N.W.2d 266 (1988).

All cities, villages and sanitary and improvement districts in Nebraska shall have a lien upon real estate within their boundaries for all special assessments due thereon to the municipal corporation or district, which lien shall be inferior only to general taxes levied by the state and its political subdivisions. When such special assessments have become delinquent, without the real property against which they are assessed being first offered at tax sale by the tax sale certificate method or otherwise, the municipal corporation or district involved may itself as party plaintiff proceed in the district court of the county in which the real estate is situated to foreclose, in its own name, the lien for such delinquent special assessments in the same manner and with like effect as in the foreclosure of a real estate mortgage, except as otherwise specifically provided by sections 77-1903 to 77-1917, which shall govern when applicable. Final confirmation of sale in such foreclosure proceeding and issuance of deed to the plaintiff, or its assignee, cannot be had until two years have expired from the date of the sale held by the sheriff, and, after expiration of such two-year period, personal notice has been served on occupants of the real property. The remedy granted in this section to cities, villages and sanitary and improvement districts for the collection of delinquent special assessments shall be cumulative and in addition to other existing methods.

Annotations

This section provides the subdivision of the government named therein an independent and complete remedy for the foreclosure of special assessment liens and is in addition to any other remedies provided by the law for the collection of special assessments. Sanitary & Improvement Dist. #222 v. Metropolitan Life Ins. Co., 201 Neb. 10, 266 N.W.2d 73 (1978).

On or before October 1 of each year, the county treasurer shall make a report in writing to the county board setting out a complete list of all real property in the county on which any taxes are delinquent and which was not sold for want of bidders at the last annual tax sale held in such county. It shall be the duty of the county board, at its first meeting held after the making of such report, to carefully examine the same, and while it may direct the issuance of tax sale certificates to the county upon any real property upon which there are any delinquent taxes, it shall, as to all real property upon which taxes are delinquent for three or more years, either enter an order directing the foreclosure of the lien of such taxes as provided in section 77-1901 or enter an order for the county treasurer to issue tax sale certificates to the county covering the delinquent taxes upon such real property, to be foreclosed upon in the manner and at the time provided in sections 77-1901 to 77-1918.

The county board shall have authority to direct the county attorney to commence foreclosure of such liens or certificates or it may designate another attorney to commence such actions, and the county board is authorized to pay any reasonable fee for such foreclosures to be assessed as costs. In the event the county attorney is designated to bring the action, the fee shall be fifty dollars for each cause of action in addition to his or her salary to be retained by him or her, but it shall not be paid to the county attorney until the decree is entered and the property sold pursuant to such decree. No fee shall be allowed the county attorney for such foreclosures in counties having a population of more than one hundred thousand inhabitants.

Any county treasurer, county attorney, or member of the county board who willfully fails, neglects, or refuses to perform the duties imposed by such sections shall be guilty of official misdemeanor and subject to removal from office as provided in sections 23-2001 to 23-2009. If the county board fails to dismiss the county attorney for failure to foreclose liens, the county board shall be removed. Any member of a county board who, upon a motion duly made by one member of such board to remove a county attorney from office who has failed to foreclose liens, does not vote for such motion or any member who votes to retain a county attorney in office after it has been brought to the board's attention that he or she has failed to foreclose liens shall be subject to removal from office as provided in sections 23-2001 to 23-2009.

Annotations

Pursuant to this section, a county must choose to foreclose real estate tax liens under either the lien method set forth at section 77-1901 or the certificate method set forth in section 77-1902. County of Seward v. Andelt, 251 Neb. 713, 559 N.W.2d 465 (1997).
Laws 1971, L.B. 743, which amended this section was effective so far as compensation was provided for county attorneys as soon as it could become operative under the Constitution, but fee not payable until property sold pursuant to decree. State ex rel. Nebraska State Bar Assn. v. Holscher, 193 Neb. 729, 230 N.W.2d 75 (1975).
County attorney is obligated to institute and prosecute actions by county to foreclose tax lien. State ex rel. Nebraska State Bar Assn. v. Conover, 166 Neb. 132, 88 N.W.2d 135 (1958).

Section 77-1918 shall be so interpreted as to effectuate its general purpose, to provide, in the public interest, adequate compensation as therein provided for county attorneys, and to give effect to such salary as soon as same may become operative under the Constitution of the State of Nebraska.

Where any county shall have commenced proceedings in this state under the provisions of section 77-2039, C.S.Supp.,1941, and shall have purchased real estate sold under said proceedings, as trustee for the benefit of the governmental bodies interested in the taxes, and the sale has been confirmed and the deed or deeds therefor have been issued and delivered to the county and the county has sold the real estate prior to May 26, 1943, any person, persons, firm or corporation or governmental body of the state, which shall have or has had any interest whatsoever in said real estate, lien thereon or interest in said taxes, shall have one year and no more, under any circumstances whatever, from May 26, 1943, within which to bring any action whatsoever to attack said proceeding, any of the steps taken thereunder, the method of purchasing, the power of the county either to bring said proceeding or to purchase the property in its name as trustee or said deeds. In the event no such action shall be brought within said period so fixed by this period of limitation, then the title of the purchaser from the county shall be valid and absolute against any such person, persons, firm or corporation or governmental body.

Where any county shall have commenced proceedings in this state under the provisions of section 77-2039, C.S.Supp.,1941, and shall have purchased real estate sold under said proceedings, as trustee for the benefit of the governmental bodies interested in the taxes, and the sale has been confirmed and the deed or deeds therefor have been issued and delivered to the county, any person, persons, firm or corporation or governmental body of the state, which shall have or have had any interest whatsoever in said real estate, lien thereon or interest in said taxes, shall have one year and no more, under any circumstances whatever, from May 26, 1943, within which to bring any action whatsoever to attack said proceeding, any of the steps taken thereunder, the method of purchasing, the power of the county either to bring said proceeding or to purchase the property in its name as trustee or said deeds. In the event no such action shall be brought within said period so fixed by this period of limitations, then the title of the county as trustee shall be valid and absolute against any such person, persons, firm or corporation or governmental body.

Where any county shall have commenced proceedings in this state under the provisions of section 77-2039, C.S.Supp.,1941, and shall have purchased real estate sold under said proceedings, as trustee for the benefit of the governmental bodies interested in the taxes, and the sale or sales have not been confirmed as of May 26, 1943, but more than two years shall have elapsed since the date of the sale, then the county shall be entitled upon motion to have the sale or sales confirmed and a deed or deeds issued to it and any person, persons, firm or corporation or governmental body, which shall have or have had any interest whatsoever in said real estate, lien thereon or interest in said taxes, shall have one year and no more, under any circumstances whatever, from the date of the issuance of said deeds within which to bring any action whatsoever to attack such proceedings, any of the steps taken thereunder, the method of purchasing, the power of the county either to bring said proceeding or to purchase the property in its name as trustee or said deeds. In the event no such action shall be brought within said period so fixed by this period of limitation, then the title of the county to said premises, as trustee, shall be good and valid as against each and all such person, persons, firms, corporations or governmental bodies, and the county shall not be required to pay the subsequent taxes, levied or assessed against said premises, or the court costs charged against said real estate in the foreclosure proceeding.

Where any county shall have acquired real estate, under the conditions set forth in any one or more of sections 77-1923 to 77-1925, the county board shall have power to convey any of such real estate, by a deed signed by the chairman of the county board at any time after May 26, 1943, subject to the right, if any, of any person, persons, firm or corporation or governmental body to attack the same by action or proceeding within the one-year limitation herein provided for, for such price as the county board, in the exercise of good faith, shall determine to be a fair and reasonable price for the property.

From the proceeds of the sales of said pieces of property, or any sales which may have heretofore been had, there shall first be paid the costs of sale, the court costs, including any attorney's fees paid or to be paid on account of said foreclosure, any reasonable expense in taking care of the property and all costs for advertising for delinquent taxes. The balance, if any, shall be distributed to the governmental bodies in the following manner: By paying the taxes which shall have been unpaid by the previous owners, with interest and penalties, in the inverse order assessed, to the extent of the proceeds, and any unpaid taxes thereafter remaining shall be canceled on the books of the county.

Where any county, city, village, school district, drainage district, or irrigation district shall have commenced proceedings under the provisions of either section 77-2040 or 77-2041, C.S.Supp.,1941, to foreclose tax sale certificates, and the sale or sales held by the sheriff in such proceedings has not been confirmed as of March 24, 1947, but more than two years shall have elapsed, either between the time of issuance of tax sale certificate and the time of instituting the tax foreclosure proceedings, or from and after the time of holding sheriff's sale, then such purchaser of the tax sale certificate or certificates shall be entitled upon motion to have the sale or sales confirmed and a deed or deeds issued to such purchaser, and any person, persons, firm, corporation, or governmental body, which shall have or has had any interest whatsoever in the real estate, lien thereon, or interest in the taxes foreclosed, shall have one year and no more, under any circumstances whatever, from the date of the issuance of the deed or deeds, within which to bring any action whatsoever to attack such proceedings, any of the steps taken thereunder, the method of purchasing or the power of the county, municipality or other governmental subdivision mentioned above to bring said proceedings, to purchase the property in its name as trustee, or to receive deed. In the event no such action shall be brought within the period of limitation fixed by this section, the title of the purchaser shall be valid and absolute against any such person, persons, firm, corporation, or governmental body.

Annotations

Failure to bring action did not bar claim of easement. Jurgensen v. Ainscow, 155 Neb. 701, 53 N.W.2d 196 (1952).

In the event any person, persons, firm, corporation, or governmental body shall bring any action whatever to contest the validity of any of the tax foreclosure proceedings, under either section 77-1933 or 77-1934, then such person, persons, firm, corporation, or governmental body shall first pay to the clerk of the district court in which the action shall be brought all taxes levied or assessed against real estate for the years foreclosed on, with interest and penalties provided by law, and all court costs in the tax foreclosure proceedings taxed in the cause of action affecting the real estate involved in the subsequent action, and shall also pay to the county treasurer of the county all taxes levied or assessed against said real estate subsequent to the taxes foreclosed upon, with interest and penalties provided by law, which are liens upon the property at the time such subsequent action shall be commenced. The money paid to the county treasurer as subsequent taxes shall be held by the county treasurer in escrow until there has been a final adjudication as to the validity of the tax foreclosure proceedings under attack, and not unless and until such proceedings have been adjudicated to be invalid shall the county treasurer distribute the subsequent taxes thus paid to the state and governmental subdivisions entitled to participate therein. The payment of such taxes and court costs shall be a prerequisite to the filing of any such action. In the event the party bringing action to contest the validity of such tax foreclosure proceedings is unsuccessful, the clerk of the district court shall refund to such party, after deducting all unpaid costs assessed against him by the court in such action, the balance remaining after such deduction of the amount of any costs and taxes paid to such clerk as a condition precedent to institution of such action. The county treasurer shall also refund all subsequent taxes paid by such party in the event he is unsuccessful.

When any county, city, village, school district, drainage district, or irrigation district shall have acquired real estate under such tax foreclosure proceedings, the governing body of such governmental subdivision or municipal corporation shall have power to convey any such real estate by a deed signed by the chairperson or other presiding officer of such body, subject to the right, if any, of any person, persons, firm, corporation, or governmental body to attack the same by action or proceeding within the one-year limitation provided in sections 77-1934 to 77-1936, for such price as the governing body of any such governmental subdivision or municipal corporation, in the exercise of good faith, shall determine to be a fair and reasonable price for the property.

In all proceedings heretofore had for the foreclosure of tax liens or tax sale certificates wherein a valid decree of foreclosure was procured, but proceedings subsequent to the entry of such decree were defective, invalid, or void for any reason, any person who has, subsequent to the entry of such decree, acquired any interest in such property by purchase from a former owner, assignment from a lienholder, payment of subsequent taxes, or erection of improvements on the property, may file an application to have the tax foreclosure proceeding properly completed, and the rights of the parties subsequent to the entry of such decree adjusted by the court.

Annotations

Act is only procedural in character. City of Wayne v. Adams, 156 Neb. 297, 56 N.W.2d 117 (1952).

The application provided for in section 77-1938 shall be filed in the original tax foreclosure proceeding wherein the decree of foreclosure was rendered. The application shall set forth: (1) The nature of the interest of the applicant in the property and how it was acquired; (2) the defect or defects which rendered proceedings subsequent to the decree of foreclosure defective, invalid, or void; (3) the taxes and special assessments which have become a lien since the entry of the decree of foreclosure, and the amount thereof, if any, paid by the applicant; (4) the improvements, if any, placed upon the property since the decree of foreclosure by the applicant or any person under whom he claims an interest in the property; and (5) any other facts proper for a court of equity to take into consideration in determining the rights, equities, and liens of the parties in and to the premises described in the tax foreclosure proceedings. The application shall conclude with a request that the court order the foreclosure proceedings to be properly completed and the rights of all parties arising subsequent to the decree of foreclosure be adjusted and determined.

Notice of hearing upon the application shall be given to the plaintiff in the foreclosure proceedings, the state and all governmental subdivisions having any interest in the taxes found due by the decree, and all other persons who have since the entry of the decree apparently acquired any interest of record in the property. Such notice shall be served upon the parties in the same manner as a summons is served at the beginning of a civil action. Service of process may be made upon the State of Nebraska by service upon the Attorney General. Such parties shall have twenty days from the date of service of such notice in which to answer said application.

Upon hearing the application, the court shall enter a supplemental decree directing that the tax foreclosure proceeding be properly completed, and determining the rights of all parties that have arisen subsequent to the entry of the decree of foreclosure. The rights adjudicated in the original tax foreclosure proceeding shall be respected and observed, but such adjudication shall not prevent any party from establishing superior rights that may have arisen since the entry of the decree through payment of subsequent taxes and special assessments and the placing of improvements on the premises in good faith. In the event any municipal corporation or governmental subdivision shall have received any consideration as the result of the proceedings which were defective, invalid, or void, it shall be required to account for the same, and judgment may be entered against it for the amount thereof and applied as a credit on any amount due it under the original decree of foreclosure.