Effects of AB1482 (rent control) already being felt (Oakland: rental market, evictions)

[opossum1]

Originally Posted by HereOnMars

I don't know if I live in a "nice" county or not but I know that selling the property is the last thing it wants to do. At some point, an ongoing tax delinquency could end up with the county actually owning the home, because of the amount owed on taxes. They may choose to sell it at that point in time but, as you say, the owner has the opportunity to pay the back taxes to release the lien on their property.
Also, as you said, it is at the discretion of the county involved.

Yes, and depends on state law. They might disallow the owner to even bid on tax lien auction. One they sold off the lien, it accrues interest... which has to be paid, if owner wants to pay back taxes during grace period after sale. Basically, the county/town unloads the lien or tax deed and let the buyer decide if foreclose, evict, etc.

[JGC97]

Originally Posted by opossum1

Yes, and depends on state law. They might disallow the owner to even bid on tax lien auction. One they sold off the lien, it accrues interest... which has to be paid, if owner wants to pay back taxes during grace period after sale. Basically, the county/town unloads the lien or tax deed and let the buyer decide if foreclose, evict, etc.

Very true and considering how much California wants and needs revenue, perhaps we'll see more of these types of auctions taking place. Lord knows, there are plenty of wealthy people who would love nothing more than to scoop up these properties (as they did during the peak of the foreclosures a decade ago) so they can rent them out, thus widening the gap between the have and have-nots.

I don't think this AB1482 is going to help anyone. I've never believed you can force someone into not being greedy but passing this Bill has caused landlords to move faster in raising rents before they are no longer able to do so. That's why we're seeing more of these stories on the news.

[opossum1]

Originally Posted by HereOnMars

Very true and considering how much California wants and needs revenue, perhaps we'll see more of these types of auctions taking place. Lord knows, there are plenty of wealthy people who would love nothing more than to scoop up these properties (as they did during the peak of the foreclosures a decade ago) so they can rent them out, thus widening the gap between the have and have-nots.

I don't think this AB1482 is going to help anyone. I've never believed you can force someone into not being greedy but passing this Bill has caused landlords to move faster in raising rents before they are no longer able to do so. That's why we're seeing more of these stories on the news.

I'm not sure if your county is in California, since California is a tax deed and not a tax lien state.
Perhaps you meant Special Assessment non-payment liens when you mentioned them placing and holding a lien on the property, which they do in California.
For non-payment of property tax itself, CA does tax deed only, which they can do after 5 years of delinquency, and there's no redemption period after tax deed sale as I understand (unlike in tax lien states where the own owner still can get the property back after tax lien auction, in some states for up to 3-4 years grace period - though they have to pay high interest and court and auction fees).
I think right now most tax auctions in CA are for unbuilt land (I might be wrong). Out of state, definitely more properties with homes being sold. Rent and property values being very high and tax relatively low people would rather pay off the tax in CA than loose it to auction.

[JGC97]

Originally Posted by opossum1

I'm not sure if your county is in California, since California is a tax deed and not a tax lien state.
Perhaps you meant Special Assessment non-payment liens when you mentioned them placing and holding a lien on the property, which they do in California.
For non-payment of property tax itself, CA does tax deed only, which they can do after 5 years of delinquency, and there's no redemption period after tax deed sale as I understand (unlike in tax lien states where the own owner still can get the property back after tax lien auction, in some states for up to 3-4 years grace period - though they have to pay high interest and court and auction fees).
I think right now most tax auctions in CA are for unbuilt land (I might be wrong). Out of state, definitely more properties with homes being sold. Rent and property values being very high and tax relatively low people would rather pay off the tax in CA than loose it to auction.

You are absolutely correct. I had to look at the county website where that information is specific and they will sell your property for unpaid taxes. There is a five-year limit on defaulted taxes and can have it removed by redeeming the payment. I forgot to check if there's interest levied in those cases. Thank you for enlightening me. I don't follow this kind of stuff that deeply because it doesn't affect me so I tend not to scour for information on it but it's good to know. So thanks

[opossum1]

Originally Posted by HereOnMars

You are absolutely correct. I had to look at the county website where that information is specific and they will sell your property for unpaid taxes. There is a five-year limit on defaulted taxes and can have it removed by redeeming the payment. I forgot to check if there's interest levied in those cases. Thank you for enlightening me. I don't follow this kind of stuff that deeply because it doesn't affect me so I tend not to scour for information on it but it's good to know. So thanks

I think there's interest and rates tend to be pretty high (way higher than mortgage interest rates) in CA counties. Plus they apply various fees and penalties.
Investing in lien certs and deeds is entire line of business... kind of risky though.

[Ultrarunner]

Originally Posted by opossum1

Yes, and depends on state law. They might disallow the owner to even bid on tax lien auction. One they sold off the lien, it accrues interest... which has to be paid, if owner wants to pay back taxes during grace period after sale. Basically, the county/town unloads the lien or tax deed and let the buyer decide if foreclose, evict, etc.

As a child walking to school in East Oakland I would pass abandoned homes... windows busted... sometimes fire damage and often yards used as dumping grounds...

These were abandoned... tax money not recovered... in fact it was the goal to get these properties back on the tax roles... so a program would allow prospective homeowners buy and renovate the property and after 5 years of occupancy and making improvements... maybe a new roof, paint and fix the windows Title to home would pass for $1...

Some of these $1 homes are now worth 400k....

Real Estate has always been cyclical... very educated people said Oakland was done for and long ago wrote it off... what a difference 40 years makes!

My point is sometimes the tax man does lose...

[Trekker99]

Rent control backfire seems to be hitting some in SD
https://www.nbcsandiego.com/news/loc...564839481.html

[CaliRestoration]

Originally Posted by HereOnMars

I don't think this AB1482 is going to help anyone. I've never believed you can force someone into not being greedy but passing this Bill has caused landlords to move faster in raising rents before they are no longer able to do so. That's why we're seeing more of these stories on the news.

Government intervention ALWAYS fails like this. Rent control has NEVER worked to help the people who actually vote for it.

[opossum1]

Originally Posted by Ultrarunner

As a child walking to school in East Oakland I would pass abandoned homes... windows busted... sometimes fire damage and often yards used as dumping grounds...

These were abandoned... tax money not recovered... in fact it was the goal to get these properties back on the tax roles... so a program would allow prospective homeowners buy and renovate the property and after 5 years of occupancy and making improvements... maybe a new roof, paint and fix the windows Title to home would pass for $1...

Some of these $1 homes are now worth 400k....

Real Estate has always been cyclical... very educated people said Oakland was done for and long ago wrote it off... what a difference 40 years makes!

My point is sometimes the tax man does lose...

There were $1 homes in Detroit too...
Was that Oakland $1 program requiring 5-year homeowner-occupancy or allowed to rent it out?
Living in such home would be too unsafe.
And with many abandoned homes, improvements can be destroyed/stolen/vandalized/home gutted, but I guess the situation wasn't so bad, making it worth for someone to put a new roof on a home. Othewise it all would just be bulldozed, eventually. There're big demolitions in Detroit, $1 homes don't help. In Oakland, nice climate always had been a big factor.

Another thing...one break-in with them cooking meth inside (very likely in this kind of envornment) and the home is blighted, unless there's expensive clean up and owner can be sued if not disclosed, not to mention simply unsafe to be in such place because of chemicals involved. 40 years ago...probably before crystal meth labs epidemic.

[CaliRestoration]

Originally Posted by Trekker99

Rent control backfire seems to be hitting some in SD
https://www.nbcsandiego.com/news/loc...564839481.html

As predicted.