CA Tax Deed Properties With Occupants
I would like to know if I should avoid properties that are going up for auction in CA tax deed sales that have occupants in them. Assuming that I will get any properties at all, what can I do to get them out or work something out with them? My objective for this first sale that I will be attending is to just try to get a home that I can live in. Should I contact the occupants and ask them what their situations are, whether they are the owner or tenants of the place? Is there a possibility that the occupants are squatters, and I can't evict them from the property? Thank you for all your time.
[addsig]
ephoric--(CA)--------------
You are right to doubt that you will be successful. Your chances are slim.
So, you probably won't face the issue.
However, if you do, don't worry about it.
After you have the recorded deed, you can talk to the occupants and ask them to move out. If they are legitimate renters, they must be given a 30-day notice and then eviction can begin. If they are former owners, you should be able to start eviction proceeds sooner.
Use an attorney that speciaizes in evicitions or eviction service to do the eviction.
Good Investing*********Ron Starr*********
Thank you for your reply. It really has put my nerves at ease. I have two additional questions. I have heard that I should wait about a year before doing anything, including trying to ask somebody to leave, just in case the county has made a mistake. Is this true? I also noticed that on the tax collecter's website, it posts that the last date for the owners to redeem their properties is 2/27/2004. Does that mean that after the sale, a owner may not come back and redeem the his/her property?
sale date is March 2, 2004. The date of Feb 27,2004 is theoretical last day to bring taxes current.
The sales are fun but you should have qualified in on Feb 14 I believe. Also you have to go way out to Pomona to the Fair Grounds for the sales. I think you should have flashed the qualifying $1,000 cashiers check prior to or on Feb 13.
Of course there is another game but it requires a lot of research and that is the "Second Tax Strike" You moniter the persons who bought and from your research on the properties you watch those that the bids were too high. You know people get caught up in the thrill of the moment. Well time passes, they finaly look at the property, throw up and are ready to resell their position.
Remember my classic example of the bidder who went some $5,000 for a long legal metes and bounds which described a triangle of land about 12 inches by 14 inches. I sold him my map at the end of the auction. You should have seen the look on his face. I made $5 on the sale of my map. Now that was fun. You have to know what you are doing. I always required that the girls I dated expose their faces without makeup prior to the third date. I guess that is why I had such limited dates.
Cheers Lucius
Lufos,
that kind of stuff happens all the time at these auctions. It really is a "buyer beware" transaction. Last week, I almost bought a parcel in a subdivision that did not exist. Oh the land existed there, but there were no roads to it like the plat maps indicated. I would have had no way to get to it. I hope no one buys that parcel.
Remember, the burden is on you to do the diligence and make sure you are not taken.
good luck
pete
I agree with Ron. Dont waste your time
on tax sales. Spend your time farming areas in search of "Absentee" owners or going after pre-foreclosures that are close to the trustee sale.
Best Riches,
Jeff Adam
[addsig]
You should hear this:
I wen to see last Saturday a BIG chunk of nicely shaped land beautifully suited near the Naples (Long Beach). I thought, you can build at list 20 houses so it must worth at list 2-4 million. The tax record showed that what's owed so far was 28K so I couldn't resist not to check it.
When I arrived on the site ( near the site to be frank) I couldn't believe that such superb peace of land was landlocked and completely surrounded by rows of expensive houses in couple of gated comminutes so I figure this: If I can get a cheep enough helicopter to get me in and out, this would be the most secured hous in the county of LA. Somthing many would pay for it, don't you think? The treasure house that I would like to build would be hanged on famous Lufos's SKY HOOKS, so what looks like a minus would be turned into plus; who care if there is no road to home.
In this crazy La La land, there is always going to be a moron or few who valu his or her privacy before all the rest, fugative from the law with a lot of cash big enough to buy into such idea.
Never the less, from what I am hearing now, sky hooks are on the 6 mo back order due to Borg's strike. I'll wait...
Patient Omega. [ Edited by omega1 on Date 02/18/2004 ]
Ron and Jeff,Whats your take on Ca. tax sales?Waste of time?If so why?I'm interested myself but would like opinions from someone experienced.
Thanks
Cragseeker--CA-------------------
There are many people going to the sales. The competition is fierce. Often properties sell for more than their market value.
Given all that, there may be some good buys for those who are careful and persistant. I checked the results of the tax sales for 2001, 2002, and 2003 in Nevada County, CA, to use in teaching my class on tax sale investing at the San Francisco Learning Annex. There were not many properties actually sold, about 4-9 each year. But there was one property resold from each of those three years. From the sales records, the owners made nice profits from all three.
You need to do careful research. You have to look at many properties before many sales these days. You could, if you are knowledgeable, still be successful.
I don't go to the CA tax sales these days as I found the deals better and less competitive in OK state. I started buying there in 1999 and have gotten at least one house each year.
Good Investing and Good Investing***********Ron Starr************
From what I have noticed about tax sales is there seems to be alot of emotion involved. People go in blind fold with the goal that they are going to buy a house. and next thing you know it they over bid. It happens alot. be careful. Good luck out bidding the bank!!