Tax Deed Sale In Florida
Whelp... there's a bunch of properties listed in the paper announcing a tax deed sale on Oct 9th. For some strange reason I started salivating, then realized I don't know a bloody thing about em. From the postings, it appears that the owners of the properties have until the auction to clear up the liens/deeds or the properties go to the highest bidders. Also seems to stipulate that cash is required.
Tell me please... is 100% cash required for a purchase? I plan on attending if I can just for the education but would like to have a clue upon arrival. What else can I expect there?
My recommendation is to attend a few auctions just for the education. Take the list, look at the county property appraisers website for their current value assessment. Take a drive to the property, take a picture if need be. Since you cannot gain access to the property, see what TLC it needs from the outside and take that cost into consideration of your 'pretend' bidding. Create your maximum bid price based on the information you've collected and what you have seen. Take the information to the auction and see how bidding takes place on each property. Learn how to do title searches from the county office or if you know of someone in a title company, have them do a title search on properties you are interested in. Keep in mind that the property owner has up to the time of hammer fall to redeem their property. So in some cases you may have to lay out title money for a property that becomes unavailable. But you need to know what it is you are bidding on. What clouds are on the title if any. I hear of people bidding on properties without doing title searches and I certainly do not recommend it.
Hope this helps.
Is this a Tax Deed auction or just a Tax Lien sale?
Of you who know the difference, please post here to help educate us newbies.
No matter what piece of property you are buying - you must have a Title search done !!!
Due Dilligence is YOUR responsibility.
Tax Liens are one place you should NEVER bypass that rule.
Good luck - happy investing
PS - what county is the sale in? If it's Duval, call me, I'd like to attend also.
Thank you both for the input... it's in Polk county and the legal notices for a Tax Deed Sale were posted in the Ledger newspaper.
Title searches, eh? Hmm... wonder if that can be done online... anyone know?
Liens in Lee County Florida are posted on the county courthouse website. You just have to go into public records and enter the name of the person that owned the property to look up any liens against them. Then you have to bring up each lien individually to see what property they were for and the amount. It takes alot of research, but I cant afford to pay for title searches for every property i'm interested in, so that's what I do.
You have to be very careful for a number of reasons. So many properties are bid above market value by people who have attended the seminars and bought tapes on late night TV. It is not easy to get possession. You cannot easily get title insurance and you can get tied up in lengthy and costly court battles. I am learning the hard way in one Florida county. The Buyer Beware thing is really applicable here.
Florida has Tax Lien Sales and Sheriff Sales. Tax Lein Sales is when the taxes owed on the property are auctioned off for an interest rate. Basicly you pay the taxes on that property and your bid interest rate is what you earn on the money you put up to pay the taxes, IF the owner does not pay their taxes in the prescribed time then the state sells the property at a sheriff sale. the first person to get paid from the sheriff sale is you the tax lien holder.
If you know what kind of auction or sale it is would be able to help more. Sheriff sales also happen for foreclosure in FL.
Anyone making real money in this lately? All I see these days is a bunch of people reading about it and gurus pitching a pack of lies to the suckers who fall for it. Almost nothing ever makes it to auction and you have hundreds of people fighting over the one or two good properties taking ridiculous chances just so they can place money.
I would like to know the answer to that question as well. I'm just starting out, and I would like to know if it's worth it. Thank You
johnmv -did you see the movie The Truman Show? - do you see some relevance here?
Dick I never saw it.. Tell me more... I did recently read a biography about the life of Harry Truman....lol
regarding tax sales being a hoax. They are not. In Virginia, I just went to one last week.
Houses went for cheap. On the average, less than half of the assessed value. Yes, that is correct.
However, some of them were pretty ratty looking houses. And three of the sixteen didn't make it to the sale, they paid their taxes on time. One of them was a commercial property that went for 80% of the assessed value.
These all were sold subject to the court verifying the sales. So, it may take thirty days, but as in the past, the court always approved.
Good luck out there.
Clint
I
Hello (kaschlegel)
Regarding liens being on the property... all liens are wiped away from tax deed auctions in lee county except lins which the county has on the property.
for instance,
A vacant homesite in the Cape is opening at $5k, fair market value is $14k.. winning bidder at auction paid 8,600 for the deed. now from here is what needs to be investigated.
Check with the city of Cape Coral for any unpaid balances on utilities, city water-sewer-irrigation, mowing, storm water, because if there is a balance, which in most cases are several thousand dollars, this case we'll say 3,100... now you got 11,700 in the property
all non government leins are wiped clear, they lose, unless they were the one who won the bid. I know you may not actually buy at the auction, but in case you do or ever do..but in general to everyone, due diligence is key, know what you're buying and your exit strategy and you can make money in tax sales.
Fort Myers
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