Tax Certificates
I would like to purchase a burn out brick row house from an investor who attends the tax sale every two years . The money to purchase is no problem but systematically trying to convince my other half who by the way is an experienced carpenter by trade that in this particular area the property would easily sell for around $60,000 . The asking price is $3,500 which could be bidded down and paid in increments of 1/3 not to exceed 90 days in which deed would be available. There are 3 costs to consider purchase price, foreclosure attorney, bringing taxes up to date around a year or so. And of course, making sure there are no other liens on property before anything is signed. I have network with brother -in-law who has an enormous amount of building materials and rough estimate with hands on not viewing inside of propery would roughly be about 5.000-to 7,000.
How do I convince significant other this is a good deal and property could be flipped to invest in larger units. Please someone help. Trying to move forward,
Hello manman99..........
Your situation is not clear.
1) What kind of title does the investor hold on the property that he will sell to you for $3,500? Does he have just a tax certificate that he will assign to you? Does he have a quit claim deed from the prior owner? Did he get title insurance on the property?
2) What does the fact the investor attends a tax sale every two years have to do with the situation?
3) Why would you need to hire a foreclosure attorney in this situation?
4) You say you want to check on liens before anything is signed. What document are you talking about signing and between you and who else?
5) Why hasn't the investor taken care of the taxes on the property?
Regarding the property, I recently looked at a tax sale house that had a basement fire. Outside it looked like it had possibilities but it appeared in the basement that the floor joints on the first floor were badly damaged. I'm no professional carpenter but I felt this would be a major, expensive structural problem. It had a "condemned" sign on it put up by the city. The city had a record of why it was condemned and what would have to be done to make it livable. You might check with your city to see if they inspected it inside and what they say about it.
I know I have not helped you in how to persuade your partner to join with you in this project. It sounds like you have done some research but the best way to sell a proposal is to have all the facts in detail laid out, including costs and projections, to make you case.
If possible, answer my questions above since that in itself may raise some important issues for you to consider.
Larry
Hi,
"Larry" brings important Q & A that must answered 1st. Plus, clarify if you are to purchase a QC deed or taxCert. or
tax lien? If it's a burnout in the city you have some SERIOUS issues to address. !st, the city may/probaly have a emergency demo. lien on it . (caused by the fire)That cost is bet. $5,500 - 12,000 in fees, w/daily interest added.2nd, pull the insurance report - Runs $47. (Must go Dntn to get it)this will show what's due in city www.fees.Then for the past taxes-
across from that payment window -(this area is where you obtain that info)
That runs $10/page +$3/Add'l . Then for this year and last, use the assessor's web site for the info. Then add the amounts & see if it's worth the trouble.
PLUS IF R-2 ZONED, IT'S OF NO REAL VALUE . PLUS, MAJOR zoning changes start in Nov 04 in the city of chicago.
Just trying to give a good pix. of what's ahead. Mark
Thanks for all the great info, I think I will pass on this one. Ceiling joist were mentioned with significant other . Can any real estate attorney close on foreclosed property .
This property is being sold as a tax certificate and the process goes like this.
Will receive a lien against property that is represented by a tax certificate. Tax cert. holder has a right to forclose and obtain a clear title from a court if owner does not redeem within six months of dat of bid.
His contract to bid as follows: Make a bid read sign tax certificate sales agreement . Title to the realestate can be obtained by filing a petition for tax deed 3-5 months before expiration of redemption period providing no redemption takes place and subject to payment of sub taxes fro the year of the tax sale.
The original cert. shall be held in escrow by the seller's attorney and delivered to the buyer upon payment in full. Petition for deed if appropriate even before receipt of the original cert.
The purchaser shall receive a copy of
the original tax cert. the purchaser may file a petition for tax deed immediately after signing the agreement and payment of earnest money to the seller.
The buyer adknowledges that he/she is not currently an owner, lender, lien holder or other interested party to the described property and is not acting as an agent or representatives of any such person.
In the event of redemption actual demolition or States Attorney initiated "sell in error" between today's date and (7 months) the purchaser shall receive a refund of all money paid to the seller by buyer pursuant to this agreement.
Your question on "any Atty" - there are 4 firms in the city that ONLY do this. Their fees range from $2,500 for
"non-contested" to a high of $5-6000 for
the big firms/per property. (referring to
vacant lots) . The problem is the level of service they provide is less than stellar
weather there on the high or low end of
that scale. The other important thing they seem to "forget" is that after going thru
the process, there's still a "quiet title"
issue to address. which takes another few thousand $$$ & a fair amount of time to resolve. There's a cheaper & quicker way around this the atty.'s don't
like that's avail. in many states. This is the use of a specialty service that done
in 1/2 time & costs. (Avail. in ILL.) worry about that when u get that far!
Happy hunting! Mark :-D