You definitely don’t want to be caught with your pants down and buying above 70% will do that to you...
In today’s market buying at 60% or less seems more reasonable..
There is a lot of difference between worth value and money value... And in a declining market you will need to track the decline and adjust for that for future hold time.
If you are the winning bidder at an IRS auction of seized property, you have to pay a deposit on the day of the auction and complete the purchase within 30 days.
There is a 180 day redemption period, but you complete the purchase without regard to the redemption period. Get your financing in place before you attend the auction, and be prepared to go to settlement within the next 30 days.
In the unlikely event the former owner exercises his right of redemption, you will have to surrender title, but you will be paid your full purchase price plus 20% interest.[ Edited by NewKidInTown3 on Date 11/25/2007 ]
When there was an IRS lien you got paid if the IRS exercised their redemption rights (e.g. foreclosure w/ IRS lein), but I did not understand that to be the case in a sale.
NewKid
It would appear in this case there is no redemption.
"...Upon confirmation of the sale, the Register of Deeds of Guilford County, North Carolina, shall cause transfer of the property to be reflected upon that county’s register of title. The sale is ordered in accordance with 28 U.S.C. Section 2001 and is made without the right of redemption. The real properties are to be sold subject to any leases in effect and any rights and obligations of the defendants under such leases are to be transferred to purchasers of the properties."
review current financials and tax returns.
asking value has nothing to do with how much I offer.
I figure out ARV (After Repaired Value) and then pay 80% of that minus repair costs as my maximum.
I start out way lower than that.
Cash and a quick close is helpful but not essential.
[addsig]
You definitely don’t want to be caught with your pants down and buying above 70% will do that to you...
In today’s market buying at 60% or less seems more reasonable..
There is a lot of difference between worth value and money value... And in a declining market you will need to track the decline and adjust for that for future hold time.
Good Luck
Michael Quarles
If you are the winning bidder at an IRS auction of seized property, you have to pay a deposit on the day of the auction and complete the purchase within 30 days.
There is a 180 day redemption period, but you complete the purchase without regard to the redemption period. Get your financing in place before you attend the auction, and be prepared to go to settlement within the next 30 days.
In the unlikely event the former owner exercises his right of redemption, you will have to surrender title, but you will be paid your full purchase price plus 20% interest.[ Edited by NewKidInTown3 on Date 11/25/2007 ]
Check this out more closely.
When there was an IRS lien you got paid if the IRS exercised their redemption rights (e.g. foreclosure w/ IRS lein), but I did not understand that to be the case in a sale.
cj,
Here is a notice for an IRS auction of seized property in NC.
http://www.ustreas.gov/auctions/irs/grnc_real_2608.htm
NewKid
It would appear in this case there is no redemption.
"...Upon confirmation of the sale, the Register of Deeds of Guilford County, North Carolina, shall cause transfer of the property to be reflected upon that county’s register of title. The sale is ordered in accordance with 28 U.S.C. Section 2001 and is made without the right of redemption. The real properties are to be sold subject to any leases in effect and any rights and obligations of the defendants under such leases are to be transferred to purchasers of the properties."
I guess the property owner waived his redemption rights.