Depression Age Tax Liens
I recently met an old guy who owns tax leins on hundreds of properties in my area. These leins are all 50 to 60 years old. He claims the succes rate on forclosing these properties is above 90% but he is willing to sell them for 60% of market value. Most of the land is land locked but some of it is not. Is it worth pursuing?
Hello,
The first thing you need to find out is if they are still good. I have heard in some areas the liens are only good for so many years.
90%. Seems high to me. I'm worried at this point and it's not even my money.
It might be a good deal but check it out good then....check it again.
It might help to know what State these are in?
Steve
The leins are all in New Jersey.
sounds like a scam to me, I would thoroughly check each one, and be very careful.
If the gentlemen is called Jerald Manning, it is a scam and rather interesting. His format, if this is he, is to borrow against the lien position.
Easy way to check, just get an attorney who loves money, cut him in on about 10% and let him research tax liens and the ownership index etc. etc. If it is not this likable old rogue I would be most interested in knowing how come there have been no refinances or title changes in that long 50 to 60 year period of time.
It always pays to check sometimes a pleasant suprise. If not take him to lunch and get him talking.
Take notes Lucius
I am consulting The Book Of Scams, written by the Mark of Marks, Lucius Foster, If I remember correctly there was a man operating in New York and Joisey. I think he was an early associate of Billy Sol Estes, King of the Scammers. He is the one that went thru Texas and you took out a mortgage on your farm and he put in a grain or feed storage tank and you ended up with about a $30,000 to $50,000 mortgage on your www.farm.Tanks cost installed about $1,500. Lovely man, came out to California, Where Else? and tried to sell all this paper at a 50% discount. Looked like solid gold until one highly untalented Real Estate Broker got into his little piper cub and went to Texas and checked it out.
At last count there were something like 100 enraged Texas farmers armed with shotguns. I mean this is serious stuff. Forget JHK and www.Dallas.These are Home Boys. Now thats one place you do not wish to be naughty. I had him autograph O'Henrys book "The Gentle Grafter" I think he used it as a bible or at least an SOP.
Cautiously Lucius, Mark of Marks.
joeb--(NJ)----------------
Sounds intrigueing, I would say.
First, the tax sales laws have probably changed greatly between the time the liens were purchased and today. So, anybody researching it would have to do a lot of research work, even if they were very knoweldge about today's statutes related to the collection of delinquent property taxes in NJ.
I wonder where he got them? If these are a legitimate value, could you find more where those came from?
Usually what happens is that later liens are sold off by the taxing entities. Then either they can foreclose and the old ones are wiped off, or the hold of the old lien can collect payment. Another possibility is that the old lien holder has to pay off the more recent lien holders to be able to foreclose on the old liens. So, what is the status of other tax liens on the properties?
The assessor's parcel numbers and even legal descriptions may have changed over time. It is possible that it will be impossible to find the properties.
Even landlocked parcels can have some value. Perhaps a neighbor with access will buy them to add to his/her holdings. Perhaps it is possible to force an easement over some other property and make the property usuable. Or buy a right of way or easement from an ajoining property owner.
I wonder if after the liens were sold, the county or other taxing entities just felt that these properties were pretty much worthless and took them off the tax rolls. Then there well might be no subsequent taxes and thus no later tax liens. Then these might be of value.
Also, check on the statute of limitations for these liens, as others suggest.
I think in NJ you have to go before a judge to get title to the property. With such old liens the judges might be reluctant to allow foreclosure.
I'd suggest that you get this fellow to show you some paperwork where he successfully got some properties this way and resold for a profit.
It is odd things like this where super profits can occasionally be found. Nobody else is on the properties or trying to buy them, so you might be able to negotiate some low prices, if you decide that it is a legitimate investment opportunities.
Good Investing*********Ron Starr***************
According to the 16% solution, you have 20 yrs to redeem unless he paid ALL subsequent taxes. Seems a little fishy to me!