Los Angeles County Tax Sales March 1st,2nd.
Today being the 27th of February as is my custom I bring up to date what are my intentions as to the Tax Sales scheduled for March 1st & 2nd. Being held at the Fair Grounds in Pomona. Fair Grounds now thats an unintended pun.
In front of me is the (Tax Defaulted Property Sale Book.) 421 pages. Also alongside is the 4 page Los Angeles County Treasurer and Tax Collector Remaining Items In Tax Sales) as of February 23, 2004
A quick examination reveals most of the easy ones are gone. Either they have been presold or the Taxes have been brought current. Most of this activity I am proud to say has been caused by the more active members of the Real Estate Fraternity. They have contacted property owners and made deals or assisted in the corrections of taxes. Now that is a lot of work, hope most of it was profitable. In some instances it was. I think the prime one was the Owner who now lives in Iran and his relatives were suposed to keep taxes current in exchange for allowing them to live in a rather nice house. They I am sorry to say did not and he got the shock of his life. Big shock, value of the house over $750,000.
For a small fee, in relationship to the National Debt the matter has been corrected. I delivered to them an eviction notice and while they were assembled in the living room, delivered his ultimate message. My index finger fully extended. After that I delivered the notice. Now that I enjoyed. Upon their leaving I will be cleaning and painting and replacing the bad taste (chandeleer) and selling the house. First I have to transfer it into a local trust so that the 3.5% tax withhold does not get held.
A word of caution. Most of the goodies are now withdrawn from sale. Watch the lots with no addresses. That is an indication of lack of fronting on street of record or the steep hillside unbuildable. Look at everything before you bid. Let others get carried away with the thrill of the auction. Remember you must uphold the dignity and honor ot TCI. Do not get sucked in.
Cheers Lucius 
In our city, oakland county, Michigan. They don't give out the list until a few weeks before the tax sale. By that time I don't know anything can be done to the properties except go into the auction. How do I get the default back tax lists before they publish it? I check with my city they point to the county, and the county don't do anything until may.
THe county website may have an online list. If not, go down to the county office in person. Sometimes they may not want to help you on the phone, but may get some copies in person.
believe it or not, there are still counties out there that have not updated to computers and still have information on note pads that they update every month.
If you're nice, sometimes the people will photo copy it for you.
Some private listing companies may sell the lists as well, but they usually aren't any more accurate than what you can dig up yourself from the county office.
Good luck.
Dear Beacon,
When in other counties other then Los Angeles where you have the book and the update. Approach with great care. There is as you know a possibility of error or when in Metes and Bounds a slight divergence in the description.
I suggest that it is better in the smaller counties (population wise) to do a really early run. That means going on all sites that you wish to bid and then I would play a game known as jump sale. That means you go in before and contact the owners and try to buy on any way you can. Marbles Chalk, long term paper whatever. You pay the tax bill and having perfected your ownership then either work with the property or sell to a developer or someone in need of land.
To play this game you are going to have to travel a bit. It used to be profitable, but right now I do not know I have not done it for almost 30 years. At that time I just had a very good heavy car and a small airstream trailer. I lived in it for about three months. I walked on every parcel I was interested in. I bought and bought and mostly sold to those who had a use.
Takes a lot of time and a lot of concentration and learning the situation in all the different counties. Diferent values, different ways of doing things. But still, dirt is dirt. Enjoy you will love the farming communities. Watch your land values remember they are tied to water rights.
Cheers Lucius
Great comments!
How do I do that in Texas? I wan to buy many ranches and sell it to neighbors who wan to expand theirs. Is that a good idea?
[addsig]
Dealer Jo.
With a background in car sales the world is yours. Talk about learning the gentle art of negotiation with various and sundry types. You done learned it.
Ok, what you are planning to do calls for a little preperation. You start by wandering around visiting the various spreds and getting to know the owners and operators. You hang out at the feed lots and tackle shops. There is bound to be one diner that they all hang out in. Find it and hang out. If necessary learn to chew straw, converse about the weather and the price of feed and seed. Wear the pointy boots, but never new and scuffed at the heels, you know where the spurs go if and when. You might even buy a Stetson hat, jump in the pool with it a few times and let it hang out. Don't worry it won't hurt it just give it that certain look. Yes you might take to keeping a pair of leather gloves in the back pocket of your jeans. The speech patterns, well just work on them like our Wanna Be old boy president does.
Then down to the County Offices and look for a copy of the map of the area you work in. NOt any old map this is the one that lays out the spreads. Probably in the Land Office or Assessors Office.
Now you have the look and the maps. You now start looking for properties that are boarded up, in foreclosure, or who are about to go into foreclosure. You look at the map and you may if you like offer to buy the distress property and give him a small sum for an option. Say for 30 days. tell him you have to have an appraiser look at it. Then you plot it on the map and see whose spread it touches. Now thats your man to sell it too. Check your water rights and oh yes this is Texas, the mineral rights.
The rest is up to you. Go negotiate, get rich. Develop those lines on your temples from squinting into the sun or brushing a cows tail out of your eyes.
Good luck, stay out of the larger cow pattys. I hate that.
Lucius.
I attended that auction on March 1, for the first time. It was exciting to see the potential. Now, I just want to make sure I understand correctly, are all mortgage balances wiped out?? It just seems like the bank would rather pay the taxes and foreclose on the property.
Also, would ALL liens on that property show up on a title report?? Or is there another way to obtain all of that info. Just wanna make sure that I know what I am getting into.
When is the next LA County auction?? Their website doesn't say how often they happen...
Thanks for your reply...
Raven2k12--(CA)-------------
Once a year. But there are other counties in CA, 57 more, in fact. I checked, there is no law in the CA statutes that says "Raven2k12 can only buy properties in Los Angeles County."
Yes, most of the good properties with loans on them will have the taxes paid and will not get to auction.
The mortgages are all off the properties after the tax sale if the holders thereof were properly notified by the county tax collectors office about the upcoming sale. Otherwise, they remain on the property.
Many of the properties are free and clear, so there is no lender to pay the taxes.
Did you actually check out any of the properties and understand their usability and market value, so you could compare that to what they sold for?
Good Investing********Ron Starr*************
Hi Ron,
I did not check out the properties, but just attended the first day, on March 1st. My mom asked me to join her to learn, and I didn't really know what to do to prepare. We didn't bid, but wish to be prepared for the next auction, where ever we can attend one, in the neighboring counties.
I am glad to hear that many of the properties have no mortgage on them. How would I find out, which properties have a mortgage or not?
Thanks Ron.
Raven
Raven2k12--(CA)-----------------
Why do you want to know if they have a mortgage on them or not? How will you make use of this information?
Good Investing***********Ron Starr***********
The reason I want to know if they have a mortgage or not, is that if I bid on a house and win, I need to make sure I know how much equity is there. If there is a mortgage, I figure that my equity will be decreased by the balance of the mortgage. Am I correct in that assumption?
Are you sure you did'nt just see the movie "House of Sand and Fog" in a reverse twist....
Hi, Properties are delivered F&C. aka (Free and Clear) You get the property and thats it what you pay is the tax bill and you are in clean.
The sales are held each year at about the same date. I suggest you buy the book at the Tax Collectors office which is in the Hall of Administration. Then start running.
A lot of the properties in the book get their act cleaned up prior to sale and do not go. That is why there iis a supplemental list issued. Now the reason most of these properties do not go to sale is because people like you and me get out there and solve the problem. You can buy, you can help refinance, you can bridge loan or hard money loan. YOu can bring current for a share in title and on and on. That is why so many do not go all the way to sale. And dear sir, there is also some very naughty acts that are done on properties that look abandoned or boarded up.
Scam: You set up a john doe notary. You sign a fake grant deed to another corporation. This corporation puts in a john doe ad. You respond to the ad and buy the property.You then fix it up and sell it. All the stuff going on is to throw any claimant in the future to the party off the trail of the fraudulent sale. I am sure you can see the many many actions that can be taken.
That is why many times on a Preliminary Title Order the Title Officer will check back to see if it had gone tax delinq. and then been pulled out and then he checks to see if the Notary is real if not. No Title Insurance. Sometimes this is done on instruction of a senior title officer who has we hope developed a nose for such transactions. But, They, Are, Done.
Cheers Lucius
You are lucky to live in California. Here in Lone State we do have 6 mo redemption period so the most you get is 25% on your tax payment investment. Well, I might have to move there for a while after I sell this ranch I just tied up based on Mr. Lufos script. Thank you sir, you were of great help!