I found a list!

I found a list!

Folks,

Through some searching, I have finally found a list of dilliquent tax properties on my county site! Now the site says that the next tax sale would be held on September 11, 2008, but with the bulletin on the list, the dilliquent tax payers are to show up to court on August 08, 2008. Am I assuming correctly that these people are given a final chance on the latter date? And that I should not show up in court on Friday, August 08 but wait to see who will still be on the list for the sale on September 11? Should I take the initiative and look at a few of the interesting properties and make contact with the owners? Or has the situation gone too far where as the owner can't take their name of that "red" list at this time by trying to cut a deal with me?

Answers are welcome folks.

Thanks.

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May be too late

I don't think you would have enough time to make a deal with the owner, so that they could pay back payments and penalties before the 8th. After the bank takes ownership, you can deal with them. You might want to look a little farther ahead. Get a list of auctions that will be taking place in a month or two, and contact the owners of those properties.

Al

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Tax Sales

Depending on your state, you will either have Tax Lien Certificate auctions or Tax Deed auctions. Both are generated by delinquent taxes over a period of time. If your state is a Tax Cert. state, when you go to auction you will bid on the right to pay back taxes for the homeowner, it does not give ownership. If you are a Tax Deed state you will bid on the property itself.
You can usually find a list of back taxes which are usually posted at your county courthouse 45 days prior to auction. If you are wanting to find them before that time, check with your county collectors office and they can guide you to find them. Each county/state will be different how they post them. If you are wanting to purchase the property from the homeowner, you will need to find them prior to the list coming out.

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Is it leagal.

is it legal to contact the owner to buy out his tax obligation, if it is then how to go about it.
In new york city and surrounding areas only.
Thank you Ali.


Is it legal

I don't think it's "illegal" to contact the owner. I do know that NYC (I'm from Brooklyn) doesn't have tax sales auctions. (not for private investors) I actually thought about taking that route myself. I just need to take the leap and JUST DO IT!!


List for Tax Lien in CA

I am new poster on this site. I am going crazy just trying to figure out where to start. I stumbled across an auction list for my county (San Joaquin) in CA. I have several questions that I hope someone can help me with. Has anyone had any success with obtaining properties via auction? Some of the minimum bids on the list is way below the FMV of the home which leads me to my next question. When getting financing from a bank ( I have some money to put down), how do you convince them to finance this property even though the purchase price (or amount you'd like to be financed for) is way below the FMV. If contacting the owner, what type of offer to do you make to the owner? Do you use what they owe or FMV less the taxes owed? Hope my posting is clear. Sorry so long.


...Tax Lien in CA

NO WAY do you offer them FMV less taxes owed? You're offering taxes + what ever you think will sweeten the deal. You have to understand - they are in danger of losing their property PERIOD. If they wind up being greedy, (from what I learned from others) let them go. If they don't understand that you are offering to allow them to walk away from their property with some $$ as oppose to having it TAKEN, then that's their loss.


Auctions in CA

JOYJERSAR,
I don't know about other states or even counties, but where I am I'm starting to think auctions are scams! I know of more than 10 people who have won a bid on a house at auction and the bank later called to say that they want more money. For example, one investor won a bid on a house with FMV at $120K, they won they bid with $99K, the bank called and said they wouldn't take less than $140K. Another won the bid with $87K and a week later the bank called, wanting $120K. There are LOTS of stories like these, just in the small circles of people we know! I have gone to these auctions, lured in by the low starting bids, and now I'm wondering if you really can get any good deals at them. I was wondering if anyone else has had experiences like these, or if you think auctions are a great place to get a good deal on a house?

I look forward to any advice anyone out there has. There are TONS of auction houses out here, and if I could figure out a good way to get a deal at auction, I'd be very happy! We tried to put an offer on a house yesterday, and were told that it's going to auction so they are not looking at any offers.

Thanks everyone! Laughing out loud

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Auction scams?

Auction scams? Well, that's why it's very important that you do your research and due dilligence before anything else. Just as if you were doing your research on property as if you were to purchase it. I would never go and bid on auctions unless i know it's legit. Auctions such as government auction, state, county or city. Anybody can have an auction, but they must follow the laws, rules and regulations as stated by the state their in. If this was the case in CA and the banks did what they did, i suggest that the investors should file a law suit against the banks and the people who held the auction. That's my take on this and that's why it's really IMPORTANT THAT WE ALL DO OUR RESEARCH BEFORE AND DUE DILLIGENCE.

Lloyd


Hi Lloyd

Hi Lloyd. I agree that it's important to do our research! My investor friends also did their research on each property they bid on -- that's why they didn't end up with the properties! They knew how much the properties were worth and how high they were willing to go on each. That's what I'm saying--they assumed they were getting a great deal on those homes because they won the bids with offers well below FMV. When the banks called, asking for more money, each of them walked.

I also don't think that the auctions are doing anything illegal. They tell you right away that the final sell is subject to the banks' approval. So just because you won the bid on a house, you still have to negotiate with the banks, in some cases. The reason I said it seems like a bit of a scam is because they lure you in to the auction with low starting bids, and then the bank is still going to demand a certain price, no matter what the winning bid was. (Of course, I'm sure if the bid was high enough, the bank would accept it, no problem.) This is not just one or two isolated cases, either. This has happened to many people I know.

I COMPLETELY AGREE that it's soooo important to do all your research before going to an auction, or else you may end up paying way to much for a property.

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What I heard about Auctions

I read and talked to someone who told me that the banks have bids on the houses they're trying to auction off, so they don't lose the house at too low of a bid. Let's say FMV is $150k and you win the bid at $100k. The banks reserve was $140k. It used to be that at the auction, right then and there, they would tell you your bid was too low and you didn't win. However, the banks don't want the public to see that bids are being rejected. They want people to continue showing up. So they're letting the bidders think that they won their bid (people are saying "Wow, what a good deal, I'm going to bid"), only to have the bank call them later and tell the bidder they didn't make the banks reserve, therefore the bank will make a "good faith gesture" and offer the house to you for $140k. You can get some good deals at auctions, but unfortunately there are some yucky auction houses that have no problem letting the banks do this because they're still making a little a money finding bidders for the property. You need to make sure that the auction you're going to doesn't hold this practice, but that all bids are final.


Thanks Kim

Thanks Kim. That makes a lot of sense to me and validates what I have been seeing. Each of the auctions that this has happened at were on-site auctions, and I am wondering if you can have better luck at a courthouse auction. I think I'll try going to one at the courthouse and see what those are like.

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auction list

I was going over the U.S. home auction list and saw a property there that I was offering on,the bank wanted 85k an ARV was 145k. I offered 40k, well after I saw the list I called the listing agent, an asked why they would`nt just accept my offer if the starting price was so low,well he finally said it was up to the bank and the starting price was just that.
well that same property is still bank owned, and now they are asking 60k because values have dropped so much.


5HEnterprises..

I guess i didn't have all the info you provided above. I guess that eplains it. If they bank tell you "the final sell of the property in subject to the banks's approval", then it's really not an auction, but a way for the bank to lure everyone to bid on their properties and avoid being sue. Sounds like that's another way for the bank to screw the consumers like we have been for years. They are the reaon we are in recession and the economy crisis, and they have the nerve to do this? You and everyone esle should get your state representative or Attorney General look into to this. Like the saying says, if it walks like a duck, then it must be a duck. Sorry to hear about your bad experience, but i hope everyone should have learned from this scam. It is a Scam!

LL


Hi Lloyd

I agree about the banks! I'll tell you, the more I learn about RE Investing, the less I like banks!! Sticking out tongue They ARE a major cause of this recession, and they are (in my experience) not too willing to help us all get out of it!

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You hit the nail on the head

You hit the nail on the head right there, 5H.

Brian


it is in Florida

you are not allowed to contact property owners that are on the tax sale list!!


.....about auctions

Great info and well put.....good job! I would add one other thought to keep in mind (and I share this with you because I personally know an auctioneer) don't think that there AREN'T people @ an Auction that wouldn't bid just to get the prices to go much higher, to stir a "frenzy" so you might possibly make a hasty bid with all the excitement that's going on. YES, it is illegal for the auction folks to have these people there, but that doesn't stop them.....and try proving it!

AND, NEVER EVER, NEVER EVER, and NEVER EVER whether @ an auction or not at an auction allow yourself (or your partner) to become emotionally involved with a property BEFORE you acquire it (you will most certainly pay too much for it), afterwards, well that's a different story!

GO GET FILTHY STINKING RICH!!!

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wow !!!

Well I was trying to find auctions in central AZ but now i'm not sure I want to. After reading all this great info thanks everyone I guess I'll try the classified adds lol!


Now Now!!

phillyjr, I love a good tax sale auction!! The prices are so cheep and alot of them So don't give up on auctions. I tell you a good auction to go to is Williams & Williams Action I been to a couple onsite auctin of theirs and bid4assets. But once again its very important to do your "DUE Dilligence" See you at the tax sales!


Tax Iiens

If you attend an auction to obtain a tax lien, and it's rate of return is 25% then lets say for example the lien is for 100.00........so 25% of 100 is 25.00 , so you would get paid back 125.00 meaning you made 25 bucks of the deal.....am I right so far? So...if you are bidding on the tax lien, and the bid goes up to 125.00, then you wouldnt make any money off the lien? Or would the tax payer, then be obligated to pay you the 125.00 plus 25% interest on that? Or am I wrong all together? I'm just trying to understand how this works. If that is right, and you paid 125.00 for the lien, and they are only required to pay you 125 then, are you just banking on hopes of obtaining the property after the redemption period if they fail to pay?


beachbum

According to my information if the lien is 100 and the rate of return is 25% then you would get 125 at the end of the right of redemption period. If the bid goes up to 125 then the person inforeclosure would have to pay 25% of that number. If the owner pays off at the end of the right of redemption period you would get your money you paid in plus the 25% that the state determined was the rate of return.

What some people do not do is wait for the second sale after the first sale is concluded. It is held a couple of months after the first sale but there are still properties left no one bid on and a person can get them for a lot lower price than at the first sale. You do not have to wait on a right of redemption period and can get the properties for a lot less. One should get a list of properties from their courthouse and do the due diligence on them before giving a bid. If you don't find anything you like in your own county then try one in a nearby county or state but be sure you find out when the next sale is for that area how the list will be and how much down payment is expected if there is one.

I hope I have given accurate info. on this but I have studied this and this is the info. I was given. Good luck to all.

JoyceC


Looks can be deceiving with banks

Thanks for sharing and starting this thread. It opened my eyes to some things I hadn't thought about. I had thought when it said subject to bank approval that meant if you won the bid an you needed to get funding the bank would decide whether it was going to allow that amount of good faith on your POF letter.


Would you be so kind as to

Would you be so kind as to enlighten me on tax liens and how they work and where can I get a program and/or software, coaching/mentoring. Any suggestions, ideas, helps would be greatly received. thanks so much. Sheila in Anderson, CA

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Sheila Mc


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