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Started By
Message
Is this the same as a sheriff sale?
Posted on 2/15/16 at 1:29 pm
Posted on 2/15/16 at 1:29 pm
2
Posted on 2/15/16 at 2:43 pm to Rust Cohle
No, that is a tax sale. You will receive a tax deed, and it is redeemable by the owner for three years from the tax sale. If it is redeemed, you will get your money back plus interest. If not redeemed, you will own the property and will need to file an action in court to quiet tax title.
* insert legal disclaimer *
* insert legal disclaimer *
Posted on 2/15/16 at 3:53 pm to LazloHollyfeld
quote:
If it is redeemed, you will get your money back plus interest
How is the interest calculated and at what value is the property taxed at?
Posted on 2/15/16 at 4:01 pm to LazloHollyfeld
So in theory if you pay the taxes for the next the years you own the property? They have some interesting addresses on the list.
It looks like Bordeaux's Catering (006-5935-5)
on Government Street on the list.
It looks like Bordeaux's Catering (006-5935-5)
on Government Street on the list.
Posted on 2/15/16 at 4:36 pm to JamalSanders
Look at the EBR assessor's website and you should be able to find the assessed value of the property. The interest is set by statute. I don't recall the rate but I'm sure you can find it fairly easy with a google search.
Posted on 2/15/16 at 6:20 pm to LazloHollyfeld
Thanks! I'm going to look into it more. I guess I'll have to just get out there and see, but things I'm wondering:
Are there good deals in here, or do they get they bidded to fair market value?
These properties must be owned outright or the bank who has the mortgage has first rights, no
If I end up owning the property, do I owe all the back taxes?
Are there good deals in here, or do they get they bidded to fair market value?
These properties must be owned outright or the bank who has the mortgage has first rights, no
If I end up owning the property, do I owe all the back taxes?
This post was edited on 2/15/16 at 6:25 pm
Posted on 2/15/16 at 6:41 pm to Rust Cohle
The link said its 5%penalty, and 1 per month of delinquency. So 12%apr. For them to buy the house back they have to pay all the back taxes, all the fees you paid for the tax sale, and the interest to you. That doesn't seem very likely to happen. Once the three years is up, you have to hire an attorney to file a lawsuit against them. The previous owners and then have six months to pay the fees, it's not the house is yours in the clear
Posted on 2/15/16 at 7:18 pm to Rust Cohle
Some of the properties on the list are interesting. Anyone ever bought property from an auction like this?
This post was edited on 2/15/16 at 8:15 pm
Posted on 2/15/16 at 7:59 pm to Geauxdaddy88
quote:
Anyone ever bought property like from an auction like this?
im in the process for couple properties.
only bid on 100% ownership
This post was edited on 2/16/16 at 12:36 am
Posted on 2/15/16 at 8:01 pm to Rust Cohle
quote:
If I end up owning the property, do I owe all the back taxes?
yes, on the site youre only seeing the back taxes for the past three years.
the property could have more back taxes, not listed, that youll need to pay, if you ever want to be full owner
Posted on 2/15/16 at 10:44 pm to Rust Cohle
double post
This post was edited on 2/15/16 at 10:49 pm
Posted on 2/15/16 at 10:48 pm to Rust Cohle
quote:
These properties must be owned outright or the bank who has the mortgage has first rights, no
There could potentially be major title problems. A sheriff's sale clears title issues up but a tax sale does not. Also, a tax sale itself can be a red flag for title companies and that property may never be able to obtain title insurance so good luck selling it to someone who wants to mortgage it.
It's a bit too speculative for my taste. Might as well move to Arizona and mine for gold in hopes you get lucky every now and then.
Posted on 2/15/16 at 10:53 pm to Rust Cohle
quote:
That doesn't seem very likely to happen.
Happens more than you think. The only way I have ever seen someone obtain a property this way was an absentee owner that lives far away and moves and forgets to update their mailing info with the assessor. Chances are they inherited the property and forgot about it pretty much. Even then some of those people pay up when faced with the suit for possession. Also, if a succession was never properly completed that goes back to the title issues I mentioned earlier.
If you have someone with an active mortgage not paying their taxes (which is rare due to escrow) chances are it will go to repo before you can ever fully go through the legal process. Plus, once it starts the pre-forclosure phase the bank is going to pay the taxes and add it to their break-even point for the sheriff's sale.
Just an overall waste of time IMO and a good way to tie money up for a small return in hopes to hit a homerun once in a blue moon.
This post was edited on 2/15/16 at 11:00 pm
Posted on 2/15/16 at 11:03 pm to stout
quote:
Just an overall waste of time IMO and a good way to tie money up for a small return
17% interest first year
12% interest second year
12% interest third year
how is that a bad investment???
the biggest issue is that you are tied to the property for three years, and that quieting the title could potentially be a pain in the arse (as you mentioned above)
This post was edited on 2/15/16 at 11:05 pm
Posted on 2/15/16 at 11:12 pm to DieSmilen
Didn't we vote to shorten the redemption period to 18 months last year?
Also, in Caddo Parish (it may vary from Parish to Parish), the penalty is 5% + 1% per month- that's roughly what you can expect to make on the investment.
Also, in Caddo Parish (it may vary from Parish to Parish), the penalty is 5% + 1% per month- that's roughly what you can expect to make on the investment.
Posted on 2/15/16 at 11:16 pm to LSUGUMBO
quote:
Didn't we vote to shorten the redemption period to 18 months last year?
if property is abandoned/blighted its only 18 months
3 years otherwise
Posted on 2/15/16 at 11:20 pm to rocket31
quote:
17% interest first year
12% interest second year
12% interest third year
You have to be paid back to realize this return and then if you aren't you have to pray there are no title issues or a long lost relative coming back claiming a succession was never done and they own part of the land.
Just too many variables for me and there isn't any sort of RE investing I haven't been involved in over the years. Rentals, flips, bond for deed, spec building, developed subdivisions, etc. I have taken some big risk (moved a damn two story house I bought from the Jim Walters show lot 150 miles one time) but I stay away from tax sales.
I am also of the belief that a fast nickel is better than slow dime when it comes to RE because markets can shift quickly. Look at Lafayette for example. There are roughly 180 houses entering the first stage of preforeclosure over the next 60 days. What do you think that market will look like when that happens?
Posted on 2/15/16 at 11:34 pm to stout
gotcha, youve obviously been in the "game" longer than i have, and i suppose this potentially could be a challenging situation
i have a little over $20k invested in 2 properties (100% ownership) with a little more than a year left before i can attempt to quiet the titles.
if there are title issues, wouldnt the city refund my tax payments?
if so, it seems like the risk is minimal (since the city will reimburse the purchaser) but again from my research, a clear answer is hard to come by..
i have a little over $20k invested in 2 properties (100% ownership) with a little more than a year left before i can attempt to quiet the titles.
quote:
pray there are no title issues or a long lost relative coming back claiming a succession was never done and they own part of the land.
if there are title issues, wouldnt the city refund my tax payments?
if so, it seems like the risk is minimal (since the city will reimburse the purchaser) but again from my research, a clear answer is hard to come by..
This post was edited on 2/16/16 at 12:35 am
Posted on 2/15/16 at 11:40 pm to rocket31
I hope it works out for you. To each his own and all that.
I just never seen it as being very appealing because of my mindset and having also dealt with two separate nightmare title issues.
I just never seen it as being very appealing because of my mindset and having also dealt with two separate nightmare title issues.
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