I have some experience with tax sales in NJ, but I have learned that PA is different. I am wondering if anyone can explain to me what a tax deed sale is.
PA has three kinds of tax sales the first is the upset sale it does not wipe out existing liens and if you purchase it at this sale you will owe on other liens first mortgage etc. which is ok as long as there is plenty of equity in the house get a title search done on properties you plan to bid on at this sale many new investors are not aware and often believe that they have just purchased a house as the infomercials say "free and clear".
If the property does not sell at the upset sale the next one will be the judical sale where most liens are wiped out except (someone correct me if i am wrong) IRS and association dues + fees some how they always want there money.
If it still does not sell then it goes to the repository which you can make a sealed bid to the town and they may or may not except it.
In NJ you are buying a lien which you will then have to foreclose, in PA you are buying the deed but take caution because you will then need to file a suit to quiet title so you can have clear title.
Your response is absolutely correct, however the Upset sale brings up another question. If you bid and win the deed at an upset sale you take possession of the property and existing liens. How do you deal with the banks from here? Do you try to refinance and get the loans in your own name or do you assume the existing liens. What is the best way to approach the bank after you acquire the deed?
try to find houses that look vacant im not a big fan of trying to kick people out of there house sometimes they are not aware what a tax sale is and this does not make for a pleasant experience, with rates being still low these days I would try to find a property that had enough equity and get a new mortgage and pay off the other loans and start with a fresh new loan, you possibly could continue to pay the old mortgage but technically a sale was made and you were not the one qualified for the mortgage if there is one on the property and the bank may want it paid off or if there flexible you may be able to work something out with them. always get your ducks lined up first though have an out strategy if its a flip make sure you are well aware of market values if its going to be a rental make sure you know rental rates
elock that is true there may be some good left overs by the third sale, but by then most of the good deals will be long gone since it is about two years since the person stopped paying there taxes i have found that most of the stuff at the repository sale is worthless lots of times builders will just let there lots go to tax sale if septic has been denied, no water, lot unbuildable etc., and for houses they may be in great disrepair and violations fees could be significant with the township just think it went kind of like this owner lost job couldnt afford to pay taxes, couldnt afford maintenace, tried to refinance but couldnt, tried to sell but couldnt, it passed by dozens of investors once at the upset sale, and then at the judical sale, and now its at the repository sale, but then again great deals are found at any stage even repository (buyer beware)
My husband and I were actually looking to buy lots at tax sales. Is there any way to find out if the lot did not perc or if there would be a problem with the septic before making a bid at a tax sale?
I am a title producer in NJ, so I am familiar with searching the records. I also know that that information is usually not found in the courthouse.
Hello Carrie, lots of good places to eat in milford tom quick inn, diimick inn, apple valley, etc. i have some ideas about checking for septic you can email me at **Please See My Profile**
PA has three kinds of tax sales the first is the upset sale it does not wipe out existing liens and if you purchase it at this sale you will owe on other liens first mortgage etc. which is ok as long as there is plenty of equity in the house get a title search done on properties you plan to bid on at this sale many new investors are not aware and often believe that they have just purchased a house as the infomercials say "free and clear".
If the property does not sell at the upset sale the next one will be the judical sale where most liens are wiped out except (someone correct me if i am wrong) IRS and association dues + fees some how they always want there money.
If it still does not sell then it goes to the repository which you can make a sealed bid to the town and they may or may not except it.
In NJ you are buying a lien which you will then have to foreclose, in PA you are buying the deed but take caution because you will then need to file a suit to quiet title so you can have clear title.
Poconos,
Your response is absolutely correct, however the Upset sale brings up another question. If you bid and win the deed at an upset sale you take possession of the property and existing liens. How do you deal with the banks from here? Do you try to refinance and get the loans in your own name or do you assume the existing liens. What is the best way to approach the bank after you acquire the deed?
try to find houses that look vacant im not a big fan of trying to kick people out of there house sometimes they are not aware what a tax sale is and this does not make for a pleasant experience, with rates being still low these days I would try to find a property that had enough equity and get a new mortgage and pay off the other loans and start with a fresh new loan, you possibly could continue to pay the old mortgage but technically a sale was made and you were not the one qualified for the mortgage if there is one on the property and the bank may want it paid off or if there flexible you may be able to work something out with them. always get your ducks lined up first though have an out strategy if its a flip make sure you are well aware of market values if its going to be a rental make sure you know rental rates
elock that is true there may be some good left overs by the third sale, but by then most of the good deals will be long gone since it is about two years since the person stopped paying there taxes i have found that most of the stuff at the repository sale is worthless lots of times builders will just let there lots go to tax sale if septic has been denied, no water, lot unbuildable etc., and for houses they may be in great disrepair and violations fees could be significant with the township just think it went kind of like this owner lost job couldnt afford to pay taxes, couldnt afford maintenace, tried to refinance but couldnt, tried to sell but couldnt, it passed by dozens of investors once at the upset sale, and then at the judical sale, and now its at the repository sale, but then again great deals are found at any stage even repository (buyer beware)
My husband and I were actually looking to buy lots at tax sales. Is there any way to find out if the lot did not perc or if there would be a problem with the septic before making a bid at a tax sale?
I am a title producer in NJ, so I am familiar with searching the records. I also know that that information is usually not found in the courthouse.
Hello Carrie, lots of good places to eat in milford tom quick inn, diimick inn, apple valley, etc. i have some ideas about checking for septic you can email me at **Please See My Profile**
Sorry pocono, I am not able to e-mail you. If you want you can AOL IM me at TMBGal
Sorry I missed that, would like to attend the next round. I live in Atlanta.