Buy Tax Lien Or Deed Without Auction
I have noticed investor tries find a way to buy tax lien or deed from the owner or title, insurance or city hall before auction begins.
My question is can you find a way to buy either tax lien or deed without require attend auction?
A Plan B is to cut a deal with the owner as already suggested and then let it go to sale and collect the overbid... if the numbers work.
*After fully disclosing your intent to the owner up front, of course.
Plan B sounds risky to me as you do not know what the overbid will be. Maybe I am missing something here. Please explain a little more. I realize it might be state specific of how it works so give us some insight.
haynesm,
Sure... after the whole due diligence thing is done and the numbers are solid. Meaning the taxes due are definitely considerably less than retail value and any applicable juniors get wiped out (or squared away prior to the sale).
It basically plays out like this:
1. pay a token amount to the owner for a deed
2. let property go to sale
3. claim overbid as owner
Correct, an investor needs to be savvy to the pertinent statutes but this scenario is a pretty common behind the scenes angle.
Why let it go to sale?
One you own the defaulted property just pay the tax, and you own it.
I remember there was a post about who gets the over bid money, but I don remember what the concensus was or just that it was a state-to-state issue.
Ex-actly!
Btw, the wait to claim varies from state to state but the basic strategy remains the same.
I find it little risky to go with plan B
Quote:
On 2009-05-11 00:55, Johnmichele wrote:
I find it little risky to go with plan B
Joe Kaiser made lots of money with this strategy in WA state. The attorney general sued him and his partners for defrauding the homeowners and won a multi-million $ judgment.
http://www.mortgagefraudblog.com/index.php/weblog/permalink/over_3_million_judgment_against_washington_foreclosure_rescue_scammer/
One you own the defaulted property just pay the tax, and you own it.
I read some other articles from the internet, that the tax lien holder also can claim the overbid from deed auction sales besides the previous property owner. Anybody know which states has this rule?