Tax Deed Sales (foreclosures, agents, investment, mortgages)

[olecapt]

Originally Posted by c_bannard

I don't honestly see anything wrong with the current path he's on?

"the only way to make money off tax defaulted property is to be an expert at it" is a load of crap!

Actually your comments smack of those supposed "brainy" people that maintain their silence and air of superiority simply because of the fact that they don't want to appear stupid by not knowing something.

Methinks that what you're saying in relation to a "number of services' is a load of crap.

Those services are typically a great way of getting ripped off blind, especially since they're usually just collating data they get directly from the counties and government departments, stamping their own brand on it and then reselling it.

Usually a recipe of parting with a monthly fee for no reason at all.

No reason why IE and a list of favourites (albeit a little longer) can't do the same job as your subscription service.

Peace out,


Wabbit

You just got done with a thousand words of why this guy should think carefully about tax deed sales. Now you turn around and say it is easy? Easy things are explained in two paragraphs.

There are services and there are services. If you don't know how to distinguish the real from the put on you will end up conned. So?

In practice locally there are services that are quite good run by some of the title companies. Note that their work product is not available on the net or to the general public. In some places you can build your own if you have a lot of time...in others you need to go to the county courthouse and actually look at the records.

It is a standard promotion here in the states..."how to make a zillion dollars in Real Estate with no money down by buying tax deeds at two cents on the dollar"...

I don't do it personally because in my local environ it does not work well. In fact most mortgage or tax deed properties here end up selling above fair market. And it is people like this guy who buy them.

So you suggest he run off and lose his money but have fun in the process?

[dr.cobey]

I hate to repeat what may have already been said, but I just wanted to reiterate that tax foreclosure deed sales/auctions really aren't that difficult as along as you take your time and do a little research. If you have the internet you don't even have to be an "expert." However, don't go rushing into it expecting to make a cool million or you will probablly get burned...

My method is as follows:

1. Focus on a certain area you are wanting to invest in (e.g. Charlotte, NC)

2. Read state, county, and possibly city laws regarding tax deed sales there
*this is all public documents that can usually be found on the .gov website

3. On these same .gov (county) websites, you will usually find a list of delinquent tax foreclosures.
*some provide better information than others, but with google maps and some practice with online GIS mapping software (which is free to use on the .gov websites) you will actually see the property from satellite photos and survey maps, etc...
unfortunately this is not true for Mecklenburg Co. (i.e. Charlotte, NC)

4. Read the foreclosure listings, or find the info where to get the listings (some counties do not publish them on the web; instead they publish the list in local newspapers), analyze it, scrutinize it, hell sing to it for all I care, but this is where you will find your properties.

5. After selecting a few potential investment properties go back to the .gov website for that county and look for the "Property Report Card". This will tell you what the estate originally sold for and when, it will tell you the last appraised value by the local government, and the amount of delinquent tax remaining.

6. This is where you must use your "professional judgment" to evaluate whether the property will be an asset or liability to you.
*Remember to review ALL applicable tax deed sale laws, because in some states under certain circumstances the mortgage lien, and/or other fees may survive the tax foreclosure.
**You need to know what liens survive a tax deed or tax foreclosure sale in your state and you need to know how to check for these liens (call a friend that is a real estate broker, they can help you out with this)

7. Now drive, walk, skip, fly (whatever) over to the property and check it out in person - please do this prior to bidding on the property
*aerial photos on google and other map software can be up to four years old

8. If you like it enough to buy it for a quarter of the actual value, get a real estate lawyer to guide you at this point. A lot of you guys (and gals) seem to be first timers so the advice that these “devils” can give you just might save your ass and your credit.

I have never taken a course on buying tax deed foreclosures and definitely I don’t claim to be an expert. I’m actually a 25 year old pharmacist who just graduated from UNC. I was studying one night and got inspired by one of those infomercials. You know the ones by some guy that is a self proclaimed “tax property sale expert” and for just $49.95 + S/H, you too can be an expert with his program. I thought to myself, screw that, I can do this on my own. It probably helped that a friend of mine I’ve known since high school, who happens to be a real estate agent, and my neighbor, who happens to be an ex-DA turned real estate lawyer have both given me pointers along the way.

This was the most important advice they gave to me:
1. If you are buying for the purpose of investing and reselling – get a business license first…
* it will save your ass if you screw up and end up owing a ton of money in back taxes or mortgage liens on your “investment”
** also remember that you are now the property owner and liable for any onsite injuries – as a business entity you cannot be personally held responsible

2. Do not rush into these sales/auctions – “haste makes waste” was never more relevant than it is here…
* hundreds, even thousands, of foreclosures are available at any point in time – buy good ones

3. If you don’t have a lot of money to spend don’t expect to get a mansion for $5,000 (as seen on TV) – cause’ it ain’t gonna happen…
*Start small and work your way up to the big houses – as you can see from this blog you aren’t the only person trying to get rich flipping foreclosures – and I hate to break it to you but a lot of investors have more money than you.

4. If it is your first time spend a little money to seek the advice of a real estate lawyer…
*these guys really are the tax deed “experts” (it’s not a hobby for them, it’s their job)

5. Don’t pay for one of those programs you see on TV late night
*they won't tell you anything you can't find for free using the internet (as seen here - I'm kidding) but seriously, don't waste your $$$

That’s enough of my ranting and what not. I hope it helps some people see the light at the end of this gloom and doom blog posting. And for those of you quoting the wiki, remember that anyone, regardless of their credentials, can write pages in that thing. Don’t get me wrong it’s great for history, folklore, scientific references and even celebrity gossip, but when you are dealing with state and federal laws that can land you jail time if done improperly; you should stick to the cold hard facts (i.e., published state and federal laws) so that you don’t bury yourself as a result of using suboptimal legal literature.

Like I said, hope this helps you find your financial freedom. You can buy me a beer and take me out on your yacht when you make the big time. Until then, I have a law exam (MPJE) to study for so I can get licensed. That's right, I'm a legal drug pusher in NC.

Later later…

- Dr.C

[want 2 know]

Im very interested in tax deed sales. I to saw the infomercial last week and thought the same as you did dr. coby. But unlike you I do not have the supporting cast with the knowlage of what to do, or even how to do it. I spent the better part of today looking up the laws here in charlotte and in north carolina, and so far I've come up empty handed. If there is anything that you can do to help I would greatly appreciate it and take you up on buying you that beer that you also had mention.
thank you want 2 know

[Mike1306]

At tax deed sales you generally will not get a quit claim deed nor a warranty deed, you will get a Tax Deed. Hence the reason it is called a Tax Deed Sale.

All liens may not be paid off so you better check it out real good. You might get the property for $5000 and then still have a $100,000 lien on it.

You will also need to file suit to quiet title which could run you $500-$1000 or more.

[Greatday]

Here in Arizona, property taxes are superior to all other liens -

When one acquires title here after the right of redemption has run, they get title free and clear of all encumberances.

[Mike1306]

That is what I thought here also but each time I see a notice for a sale they have a disclaimer about liens.
Usually it does not come into play because there is a 4 year time frame between when the tax certs are sold and the tax deed auction.
Anyone with a lien will generally be filing for a judgement within that 4 year time frame and the tax cert would be paid off with the judgement.

[bentlebee]

In our County in Florida they recently auctioned the taxes owned by delinquet home owners. I'm not really sure how it exactly works, but you can sign on to a website and put in offers and the taxes are auctioned off to the highest bidder. The winner only owes the tax lien and only gets money if the owner doesn't go bancrupt. The County gets his money and the new tax lien owner has to go after the home owner to get the taxes paid with interest. It can be a good deal or you can lose out. I have looked on the website and many bidders were companies who won more than 1 tax lien, so they are probable pro's in this field. I guess it is different in different States and maybe even in different Counties.

[MarylLEGG]

Biua

[MirandaRae]

The Sherrif should have all of the information you need in the town you are interested in. If he doesn't, he knows who does. He will be able to point you in the right direction. Look up websites for the sherrif and there is often a property tax link. Sometimes you can find all of that info online. If not you can visit him in his office and ask any questions you need to. If you are looking for properties near you. That's the best way to go about it. If you are looking for properties far away, you may try calling them on the phone. they may be able to fax you an auction list or something.

[mathjak107]

Many states have 2 sales. a preliminary sale with all mortgages and debts , the property goes very very low.....

if it dosent sell they auction it 6 months later for alot more but free of debt

bet you didnt know the grief you are in for....

if the old owner dosent leave on his own you have to start eviction preceedings.... did one in new jersey that ran almost 2 years of court

then they left all their stuff, i had to pay to have it stored for 9 months, then i had to pay to have it disposed of as it was crap

then they destroyed the inside of the place...

so we paid two years of taxes due , that was 9,000 a year, 2 years while the tenant used every stall tactic while eviction preceedings were going on....

thousands in leagal fees

thousands to store their left behind stuff in case they wanted to pay the fee

hundreds of thousands in renovations and fixing, broker fees etc......

id never do it again