Tax Sale In Florida
I have been approached my a banker who has a client who says he is getting forclosed on due to non payment of real estate taxes dating back to 1995
He doesn't tell me all the info but I have questions [ he knows nothing about tax sales or forecloures]
I'm thinking this may be a tax sale where investors will pay the taxes and get a certifcate to redeem at a later date and not really a foreclosure?
Could that be possible for taxes to have been allowed to accrue since 1995? and only now selling the certificate?
Or could this be a true foreclosure ,and if so, it would be by the investor who paid the taxes already at some point and is now foreclosing?
I'm sorry I do not have all the info but I'm now searching the legal site to see what I can learn about these tax sales I just wanted to get my question out there
Also what role and how could I play as an investor to help the guy and make some money ?[wants to stay in home]
The mortgage broker wants to refi after the taxes pd so the investor could be paid back There is no mortgage
thanks for any help
Lynlinz
Hi,
First and foremost you should look at the pbc tax collector and see exactly how much the back taxes are...see how many different investors own tax certificates on the property, how about an appraised value or comps for the house?
"Could that be possible for taxes to have been allowed to accrue since 1995? and only now selling the certificate?" >>> Yup, owner of any tax certificate, in florida, must hold the certificate for at least 2 years before they can submit it to the tax coll., which they would in turn set up a date for the auction of the certificate, meaning a Tax Deed Auction/Sale
"Or could this be a true foreclosure ,and if so, it would be by the investor who paid the taxes already at some point and is now foreclosing?" Good possibility with this being a house and not vacant land...
"Also what role and how could I play as an investor to help the guy and make some money ?[wants to stay in home]
The mortgage broker wants to refi after the taxes pd so the investor could be paid back There is no mortgage" >> Good question, many options...equity position. You may look into paying the back taxes off for him NOW and not at the auction...draw up a contract where you "loan" the owner of the house enough $$ to pay off his back taxes and interest...stating that this "loan" is in fact you buying X amount of equity interest in his house...then just decide what is a fair deal, remember HE'S the one who is really no position to negotiate...or he'll go homeless.
MT
_________________
Michael T.<br>
Fla. Agent/Investor[ Edited by MikeT1013 on Date 08/16/2003 ]
If the taxes has not been paid since 1995, I assume the cert went on sale in around 1998 and whosoever bought the cert has 5 years to collect on that cert and call for a deed sale - or else the investor cannot collect on the tax cert. (read all this some time back on the Florida tax collectors website).
Now, I feel that in this case the investor who originally bought the cert. is requesting for a deed sale, and the court is going ahead with the request. There will be biddings on the deed the same way its done on a foreclosure sale.. so I suggest the same thing that the previous poster suggested to you - pay-up on the cert. if you think that the property is in good shape. First find out how much is the cert. worth- because there is going to be a very good interest rate on the cert investment - so the payoff could be more than the equity of the property!
Finally, as the previous poster mentioned, make sure that you have done a title search and ensured there is no other liens (than the tax) and only than sign a contract stating that the property is the collatorial based on which you are funding the owner to buy back his/her tax cert.
If the property has equity - its worth doing all this -coz in a sale (in today's hot market) there is going to be tough competition.
As an investor where would you make the money?...that I would like to hear from a seasoned investor (myself very green in this arena!!).
After searching the clerk of court site I am finding more questions
It seems that as a new years taxes comes due, and the owner doesn't pay , that more than one entity can pay these taxes and obtain a tax certificate?
If that is the case then who determines who is the one to redeem for a tax deed?
Also what is the difference between
"redeem and "ready sale"
This is all very interesting! but I know one must proceed carefully and I think this deal is an eye opener but the date is too soon[a few days] for me to learn enough about what to do
Tax Deed or Tax Cert You got to find out which is going on.
You mentioned taxes were as far back as 1995 which leads me to believe it is a Tax Deed Sale.
If this is a Tax Deed Sale going to happen it will happen within weeks & the only thing that can stop it is if the property owner redeems the tax certificate or certificates by paying the back taxes, interest & fees.
You asked can this happen yes it happens all the time because the tax collector's office is not informed of current address were tax bill should be sent or because property owner just never paid the tax bill for what ever reason.
I'm on my 5th purchase of Florida Tax deed properties. Now here is some advice. Don't buy this because someone told you about it. Do your research. Find out from the County Clerk of Court how much the total is due to buy the tax deed & all fees. Ask for the copy of the owners and encumbrance report from the county because the county can not sell the property without it & you having an interest in the property have the right to ask for it. That report will show all that have an interest in the property & any liens or mortgages. Also ask the tax collector what the appraised tax value is.
Try to get a view of the property to see what it looks like.
Now if this property has a home on it is it Florida Homestead? If the property is homestead the property owners could have been given up to $25,000 tax break per year on the assesed value. If this is the case you may have to look into if any fees have to be paid to the county or state.
Search the County records for the current owner to see if any liens are owed chances are if the taxes were not paid other liens may appear. All liens recorded and filed on the property follow the tax deed & so do County, State & federal (IRS taxes)
Also you can not get Title Insurance on a property that was bought by a tax deed unless you find a title company that has a company or lawyer that will charge you $700 - $1,000 to clean the title for you. which means you can not get a mortgage without title insurance. But this doesn't mean you can't sell the property.
Land Investor,
I appreciate your reply
Can you tell me , what would be a good starting point to study these tax sales in Florida?
Any special publications or web site specific to Florida that is helpful or organized way that you operate?
Are the rules state wide or county?
I think I'll show up at the court house to see first hand what it is all about
Thanks