HAS ANYONE Bought TAX DEED PROPERTY BYPASSING AUCTION???
HAS ANYONE BOUGHT PROPERTIES GOING UP FOR AUCTION AND BOUGHT THEM AHEAD OF AUCTION???WHAT SEARCH NEEDED FOR THAT??WAS QUIT CLAIM DEED ENOUGH??? I NEED SOME ADVICE , TIPS AND SOME SEARCH COMPANIES RECOMMENDATION THAT CHARGES SO MUCH A MONTH TO USE THEIR DATABASE??ANY INPUT SHALL BE APPRECIATED...THANKS 
It is possible to purchase tax cirtificates and not attend an auction. In most cases the company would have to purchase all the liens in the county. It is up to the county and it can also be negotiable. Another option is to find an invester that wants to sell there personal portfolio
It's easier to buy left over liens than left over properties.
Richard
What do you mean-- left over liens?
You can buy left over property from the state of Alabama.
www .ador.state.al.us/advalorem/sections/land.htm [ Edited by Darren2 on Date 08/04/2003 ]
Look for lands available or lands availablae for taxes. It is the common term for most states
Good Luck,
Kyle
In TX these are called Struck off properties. No I havent purchased any but I have been keeping an eye on a few of them to go past the redemption period. (I have a reason for this - but it is personal and I wont share the reason)
have fun
Hi y'all,
well I found someproperties located in an area I wanted to buy into. I have done a search to locate the 'entity' whose name appears on the list at the Land Commissioner's Office and I think I've found the correct person to speak with by phone.Seems it was a few locals who had visions of development down the road and never made a move for one reason or another....anyway
According to the following article:
"You may consider taking a quit claim deed if you are buying property from the government that was taken due to delinquent taxes, such as property at scavenger sales.
This is because under law once a property is taken from it's owner due to a tax lien all other previous liens or financial claims against that property become uncollectable. "...
So I thought I might try the following:
offer a quit claim deed on all 6 properties
wait until the next deed sale is almost due, then go payout the taxes owing and redeem them all at once.
This would let me use ca$h elsewhere meantime is all.
Questions:
What is the required monetary offering for a QCD?
Is there going to be any further 'surprise' liens still 'stuck' to these properties? or does the debt get wiped out or perhaps follow the previous owner?
Having gotten the QCD in hand, how would you best recommend I sell these properties?
They're probably worth around 3-4K each as far as I'm aware.
All replies and scenarios appreciated.
*Curls*
luv my lil redneck avatar lol
Hi,
From what I understand about the scavenger sales and buying tax lien properties, is that you also take over responsibility for any liens that were placed on the property by government. On the properties I've checked into so far, they've been mostly liens by the county for lot mowing and garbage pick -up. So far they havent added up to enough to deter me from buying the property, and the liens I can pay over a period of time while i'm gathering rental income from the property, so they're not that bad.
I forgot to mention about bypassing the auctions. In my area the county wont sell it to anyone unless it's gone through the auction process. After the auction we're still not able to purchase it from the court until 90 days have passed. I have no idea what the purpose of that is, but that's how they do it here. The only way I could think of bypassing the auction is to track down the original owner and make a deal, if they're still able to pay the tax liens and take it over again. They're losing it anyway, so I would think they'd be happy to get anything they could out of it.
There are 2 ways that I have done this. The first is by assignement. An assignement is where you look up in the public records a files tax lien. The owner of the lien must file in order to be paid if the property is sold. It is a public record like a deed and often found inthe same place (municipal building, county cler's office, etc..). The deal in the first approach is to contact the owner/ successful bidder of the lien and pay them out, with a small premium. There is a special form needed and you must file this puiblic record as well as go back to the town wehere your lien was issued. It always makes sense to get the requirements before you buyy it because a transfer requires that lcoal rules are followed. Once you've done this and paid the prior holder, the town will re-issue the lien in your name.
The second way is to make a loan (as a Mortgage Note) to the owner of the property. You will gurantee all future tax payments (for a period you state) and the mortgage will become a 1st mortgage. If the owner doesn't pay you, then you will foreclose and guess what, the waiting period is 'out the window!'
If you need more info, contac me at **Please See My Profile**
How does that work? I would think the owner would already have a 1st mortgage, or he'd borrow from his equity to pay his taxes. How you do take over as a 1st mortgage? Sounds like a great concept.
Quote:
On 2003-09-27 08:48, kaschlegel wrote:
Hi,
From what I understand about the scavenger sales and buying tax lien properties, is that you also take over responsibility for any liens that were placed on the property by government. On the properties I've checked into so far, they've been mostly liens by the county for lot mowing and garbage pick -up. So far they havent added up to enough to deter me from buying the property, and the liens I can pay over a period of time while i'm gathering rental income from the property, so they're not that bad.
what are scavenger sales ???
CJD,
I was under the impression that with a lot of tax lien cert sales that the bank in first position will advance funds to pay off the lien, effectively wrapping in the total lien amount owed into their mortgage monies owed, keeping them in first position. The last thing they want is to be wiped out of being able to keep getting their payments, or worst case, the opportunity to foreclose. I imagine they would rather foreclose and get something out of a short sale, auction, or REO sale then give up that opportunity and let a $3k tax lien wipe them out.
Have you experienced or heard any such thing as this?
Also, when a property has the public record document filed against it (in my county it is called an instrument of taking) indicating that the municipality is taking the property back due to unpaid taxes, can't you call the owner and make a deal with them, try to discount the property, and bypass the auction entirely?
I am trying to get information on how I can get these filings in my town when they happen so I could contact the owners directly and strike a deal.
What do you think of my line of thinking? I am new and eager to learn. Thanks in advance, Dave
Curly,
The tax lien laws in all states are different. Therefore you should probably contact someone who knows something about your state laws. Here in Colorado, we have to wait 3 years to foreclose on a tax lien after we buy it.
In your senerio, it does not seem like you are getting a treasurer's deed for the property you want to purchase. Without the treasurer's deed, the liens would not be wiped out. Also some liens are not wiped out like IRS liens and bankruptcy.
Conclusion, I don't think you can wipe out the mortgage liens.
Hi,
To answer your questions, hopefully in order, here goes,
If a bank in involved, via a mortgage, yes, they will jump in and pay it off, with one exception. That being if the property is just a bad deal that has gotten worse over time and they are in the process of foreclosure, working with the FHA to pull it to someone. At that point, they will stop servicing the loan as far as paying taxes on it. You'll buy the lien at auction and they will show up and cause the municipality, at the11th hour, to advise you that the taxes have paid off. That will forestay the 'abandonment' of the property. Net/Net, they will pay off if they are involved, you may earn some interest, maybe.
At that point, they will either use investor's money (the $ of those who buy the Tax Lien for the nest periods) and continue to pre-sell the property then foreclose to get title for the sale.
I have had this happen usually with FHA houses.
For your next question, typically, the municipality has had contact with the owner, again, in most cases this is actually face-to-face and the municipality is not too interested in taking the property, it is that they are compelled to by the owner, as the owner is not or can not pay the bills. If the owner is ill or infirmed, I have seen municapilities actually pick up a banker and go to the owner and arrange a deal. They have also been known to contact their department of social services or services for the aged to get the heirs or children involved to stave off the taking of property. I have actually seen this and was I amazed. I am from New York City and, well, let's just say that that type of 'help' will not ever be seen there!
This does happen in places outside of the money center areas.
If you have advanced warning (90 days or so) you might be able to help, but this is thin ice so be very careful!
Dave, I left 27 years on Wall Street as a Bond Trader because of the regulation that I was up against there. Here, yes, there are laws, but the deals that you can make here are only limited by what you know, how much you have, how you speak, how you write and how perceptive you are. By opening your thinking to 'deal strategy' you are on the right path. And I do like how you think and you'll be successful.
Remember, we are kind of like miners. We are searching for a diamond in tons of clay. Diamonds are there, continue to persevere, you will find diamonds!
Good luck,
CJD