NORTHWEST ARKANSAS — Benton County Circuit Clerk Brenda DeShields didn’t invent the problem she’s recently become famous for: a fee system that pays circuit clerks one-tenth of 1 percent of a foreclosed property’s sale price.
This quiet levy stayed on the books for decades. We never took notice until the massive foreclosures of recent years - including the $24.1 million foreclosure sale for Pinnacle Point in Rogers.
That netted DeShields a fee of$24,100.
We’re certainly aware of the problem now. A cap on the fee - either the amount collected per sale or in the total that can be charged in any one year - certainly seems reasonable.
While we’re on the topic, there are some issues we’d like to hear lawmakers discuss when they take up this question.
For instance, the person conducting the sale might face personal liability if something goes wrong. Should a cap on the fee also include some commitment by the county to pay for the legal defense if the sale is challenged? It’s an aspect of any limit on the fee limit that ought to be discussed. It’s not hard to imagine somebody filing a lawsuit in cases where millions of dollars worth of property gets involved.
We advise the Legislature to pass some sort of cap and do it quickly. However, there’s a difference between quick action and committing a knee-jerk response to what only looks like a simple issue.
A hasty fix could create new problems that are as unintended and unforeseen as these uncapped fees.
Opinion, Pages 5 on 10/25/2010