I Want To Purchase Property That Has Unpaid Mortgages
I want to purchase a Tax upset property in Pa. The Properties I have been looking at have Mortgages on them.
If I win the bid what will I look forward to in this situation?
Anyone with Pennsylvania experience?
I have PA experience, and I am a PA real estate real estate investor. For tax delinquent property in PA, it may vary by county. For example in DELCO, they have annual tax sales around a few times a year. In Philly they are more frequent. You can go ON DEMAND (if you have Comcast), and find tax delinquent property there.
In addition, the tax auctions in Philly are downright vicious, you will need to pay 10% upfront, just for your bid to be taken seriously. The bidding war in these auctions, is like watching vicious animals tear each other apart, literally.
Try to look for property, that did not sell in the last auction. Also in Philly, they have a 1yr redemption period, but the other counties vary. Most of the counties have a website, listing both tax delinquent, and mortgage deliquent property. Be warned you will need some serious cash, the last auction I went to guys and gals were carrying fistfuls 10K or more in cash.
If you have a strategy for obtaining property, or marketing for property and obtaining before the auction, then I like to hear it.
Also with tax sales, in PA it is a (tax deed state) which means that you will get the deed outright, assuming the owner waives right of redemption, or fails to reimburse you.
What kind of property are you looking for?
Omicron, do you have any insight on his question about mortgages - are they erased after the sale?
Yes this specific question is always answered in kryptic responses.
So what is the real answer?
Quote:
On 2008-08-22 11:13, tedo_101 wrote:
Omicron, do you have any insight on his question about mortgages - are they erased after the sale?
Basically, the mortgage wiped out, in most cases due to PA being a tax lien state. Even though there are some rares cases in which they may want to settle on the 1st lien.
Quote:
On 2008-08-22 18:41, dgrilli wrote:
Yes this specific question is always answered in kryptic responses.
So what is the real answer?
Quote:
On 2008-08-22 11:13, tedo_101 wrote:
Omicron, do you have any insight on his question about mortgages - are they erased after the sale?
Typically, the mortgages get wiped out. However, you need to make sure proper notice and service was executed.
Most jurisdictions require that you server the mortgage companies, lien holders, owners, occupants and any one else that has any legal interest in the property.
Also, special provisions apply if the mortgage is held by the USA, the State or any municipality (in other words not a private company).
Chances are the mortgage company will redeem. Most large companies use tax service companies whose job is to pay the taxes on time. They do make mistakes, but it is extremely rare.
once in a while make a distribution to the member/managers whom all live in CA.
I was advise that paying fund to a CA tax payer, subject LLC to the FTB.
dingle,
Why do you recommend setting up a NV Corp? Is there some special protection afforded by Nevada statutes for crps in their state? And also, does being registered in NV as a foreign corp allow an LLC to take advantage of any state protections?
JS.