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re: Tax Lien Auctions have a great return but are they morally ethical?
Posted on 2/28/14 at 1:31 pm to LSUGUMBO
Posted on 2/28/14 at 1:31 pm to LSUGUMBO
quote:
I believe in Caddo Parish, there's a 5% fee off the top plus 1% a month. I know someone that buys tax sales that will more than likely be redeemed, but where else can you find a 17% return guaranteed?
It's the same in every parish. 5% on the top, 1% per month, after three years the property is yours.
If it isn't properly noticed, though, it's a due process violation and can be annulled for at least 10 years, maybe longer. I do some work in this area so I can tell you it's not as simple as you might think.
1
Posted on 2/28/14 at 3:00 pm to RickAstley
Most counties hold their auctions on the first Tuesday of either every month or every third month, depending on the population of the county.
They're usually held on the courthouse steps.
They're usually held on the courthouse steps.
Posted on 2/28/14 at 3:13 pm to samson'sseed
quote:
Most counties hold their auctions on the first Tuesday of either every month or every third month, depending on the population of the county.
They're usually held on the courthouse steps.
This is a blanket statement. Everywhere is different. In Alabama it is once a year.
Posted on 2/28/14 at 4:26 pm to I Love Bama
I've looked at EBR and Orleans. Both are held once a year. I might make a few bids this year.
This post was edited on 2/28/14 at 4:27 pm
Posted on 3/1/14 at 11:57 pm to AbsolutTiger
We(family) have 37 properties that we do this on. Just go to the courthouse. Anybody can do it
Posted on 3/2/14 at 2:44 pm to I Love Bama
Just posting here to remind myself to review later.
Posted on 3/2/14 at 6:27 pm to foshizzle
So I came back and TD served me an ad for an online course on tax lien investing. Chicken is on the ball.
Posted on 3/2/14 at 7:42 pm to Cold Cous Cous
quote:
the interest rate in LA is 10% plus some set penalty
It's 1% per month (12% per annum) and a 5% penalty up front. Not a bad return.
I actually had someone ask me to handle a few suits to quite title on some tax sales and I declined and referred them out. This stuff changes so much now and then Sheriffs seem to have issues with giving adequate notice. A lot of times its really almost a ransom deal for the tax sale buyer to give the owner clear title.
Posted on 3/3/14 at 7:51 am to rmc
quote:
I actually had someone ask me to handle a few suits to quite title on some tax sales and I declined and referred them out. This stuff changes so much now and then Sheriffs seem to have issues with giving adequate notice. A lot of times its really almost a ransom deal for the tax sale buyer to give the owner clear title.
This is correct. They are almost never properly noticed.
Posted on 3/3/14 at 8:20 am to rmc
quote:
A lot of times its really almost a ransom deal for the tax sale buyer to give the owner clear title.
Well one of the issues is that you cannot issue title insurance on tax sale acquired property. If the taxes were redeemed before property actually changed hands, then its insurable. But if owner never redeemed taxes, and tax sale purchaser acquires full ownership, you cant issue title insurance.
The problem is that you eliminate almost all financed buyers from your marketplace, if you were trying to sell that property. Cash buyers probably wouldn't care, but anyone that has to borrow money probably wouldn't get their loan approved.
Posted on 3/3/14 at 3:07 pm to Bear Is Dead
quote:
Well one of the issues is that you cannot issue title insurance on tax sale acquired property. If the taxes were redeemed before property actually changed hands, then its insurable. But if owner never redeemed taxes, and tax sale purchaser acquires full ownership, you cant issue title insurance.
The problem is that you eliminate almost all financed buyers from your marketplace, if you were trying to sell that property. Cash buyers probably wouldn't care, but anyone that has to borrow money probably wouldn't get their loan approved.
i don't do this, but i know some people who buy tax sale houses and then make the resident pay them rent to keep from being evicted. no clue about whether this is legal, but it seems to work
Posted on 12/12/14 at 5:49 pm to Bear Is Dead
Bumping an older thread, but I'm currently looking at a tax lien property that will be going to auction next month. I had a question about this comment:
So I'm looking into a piece of land, no home. And the intent is to build on it and then re-sell. But this statement above concerns me if true, as I hadn't heard of this before. Will it be difficult for me to re-sell the newly built home because of the lack of the ability of the prospective buyer to get title insurance and ultimate loan?
quote:
But if owner never redeemed taxes, and tax sale purchaser acquires full ownership, you cant issue title insurance. The problem is that you eliminate almost all financed buyers from your marketplace, if you were trying to sell that property. Cash buyers probably wouldn't care, but anyone that has to borrow money probably wouldn't get their loan approved.
So I'm looking into a piece of land, no home. And the intent is to build on it and then re-sell. But this statement above concerns me if true, as I hadn't heard of this before. Will it be difficult for me to re-sell the newly built home because of the lack of the ability of the prospective buyer to get title insurance and ultimate loan?
Posted on 12/12/14 at 6:41 pm to Rev1897
quote:
after three years the property is yours.
Voters in Louisiana in November just approved a constitutional amendment reducing the 3 year waiting period to 18 months. It was one of only two of the proposed 14 amendments I voted yes on.
Posted on 12/12/14 at 6:43 pm to foshizzle
quote:
So I came back and TD served me an ad for an online course on tax lien investing. Chicken is on the ball.
Chicken, just like The Force, is always present.....watching over us mere mortals.
Posted on 12/12/14 at 7:02 pm to LSURussian
I thought the 18 month redemption period was for Nola and not the whole state? Anyone know for sure?
Posted on 12/12/14 at 7:15 pm to theoldwiseone33
quote:
Anyone know for sure?
Yes....me.
The state's voters voted in the 18 month waiting period for New Orleans following Katrina but that was only for Orleans Parish. It was done to handle all of the abandoned properties from the storm.
The other parishes remained having a 3 year wait.
The November amendment changed the constitution for the rest of the state to 18 months.
Posted on 12/12/14 at 9:28 pm to LSURussian
To further clarify Russian's comment
The amendment only reduced the redemption period to 18 months from the date of recording of the sale for those properties that have been declared vacant, blighted, or abandoned.
This does not apply to property that is still owner occupied and not declared one of the above. Otherwise, it is still a 3 year redemption period.
Par Guide #10
The amendment only reduced the redemption period to 18 months from the date of recording of the sale for those properties that have been declared vacant, blighted, or abandoned.
This does not apply to property that is still owner occupied and not declared one of the above. Otherwise, it is still a 3 year redemption period.
Par Guide #10
Posted on 12/13/14 at 1:13 am to samson'sseed
I didn't even know private citizens could do this... It sounds too good to be true though, there's no way it's so simple for 17% returns.
Posted on 12/13/14 at 9:03 am to Ari_Gold
quote:
I didn't even know private citizens could do this... It sounds too good to be true though, there's no way it's so simple for 17% returns.
In Texas it's even better- 25%.
Posted on 12/15/14 at 7:48 pm to Htown Tiger
Illinois has good returns. I buy secondary tax liens when redemption period ends from other investors then foreclose and flip.
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