Apex Mortgage Corp. v. Delaware County Tax Claim Bureau ~ Appeal of: N. Cruz, LLC
26 C.D. 2024
Pa. Commw. Ct.Jul 8, 2025Background
- Frank and Lisa Basilavecchio owned property in Collingdale, Pennsylvania, with Apex Mortgage Corp. as the first mortgagee.
- The Delaware County Tax Claim Bureau sold the property to Nelson Cruz, LLC, at an upset tax sale based on an erroneous report of delinquent 2019 real estate taxes.
- Apex consistently paid real estate taxes from an escrow account funded by the Owners’ mortgage payments.
- The sale went forward in September 2022; a deed was recorded in February 2023.
- After learning about the tax sale, the Owners and Apex filed a joint petition to set aside the sale, producing proof of tax payment.
- The trial court agreed the taxes had been paid, found the tax sale was void ab initio, and set it aside. Nelson Cruz, LLC appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing of Apex Mortgage Corp. to challenge the tax sale | Apex lacks standing as mortgagee | Apex has an equitable, direct interest as lienholder | Standing argument waived by Nelson Cruz, LLC on appeal |
| Whether challenge to tax sale after claim is absolute is permissible | Only procedural/regularity issues can be challenged post-sale; cannot contest tax liability after claim is absolute | Sale can be set aside if tax was actually paid; tax sale was void ab initio | Taxes were paid, so sale was void ab initio; trial court affirmed |
Key Cases Cited
- William Penn Parking Garage, Inc. v. City of Pittsburgh, 346 A.2d 269 (Pa. 1975) (establishing standing requirements in Pennsylvania)
- Poffenberger v. Goldstein, 776 A.2d 1037 (Pa. Cmwlth. 2001) (tax sale is void ab initio if taxes were paid)
- Aldhelm, Inc. v. Schuylkill Cnty. Tax Claim Bureau, 879 A.2d 400 (Pa. Cmwlth. 2005) (purpose of RETSL is tax collection, not deprivation of property)
- Shipley v. Tax Claim Bureau of Del. Cnty., 74 A.3d 1101 (Pa. Cmwlth. 2013) (lienholders have a sufficient interest to challenge tax sale)
- Plank v. Monroe Cnty. Tax Claim Bureau, 735 A.2d 178 (Pa. Cmwlth. 1999) (after absolute confirmation, only notice defects can challenge tax sale)