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Started By
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Tax Title Sales?
Posted on 2/9/15 at 11:59 am
Posted on 2/9/15 at 11:59 am
So, there is an empty lot next to me that I have been trying to investigate a way to purchase. Lo and behold it just showed up for an upcoming tax title sale.
It seems simple, which leads me to believe im missing something. I bid 100% ownership, if no one undercuts that, i simply take care of the debts listed and wait out the previous owners repayment period. if they decide to pay up, i get a nice little return, if not i own the lot next door and continue to grow my empire.
whats the catch/potential horror story im missing?
(edit, orleans parish for reference)
It seems simple, which leads me to believe im missing something. I bid 100% ownership, if no one undercuts that, i simply take care of the debts listed and wait out the previous owners repayment period. if they decide to pay up, i get a nice little return, if not i own the lot next door and continue to grow my empire.
whats the catch/potential horror story im missing?
(edit, orleans parish for reference)
This post was edited on 2/9/15 at 12:00 pm
4
Posted on 2/9/15 at 12:19 pm to NoSaint
quote:
whats the catch/
If they owe money to the bank on it, a representative of the bank will be there bidding against you.
That will drive the price towards "fair market value". They'll let you have it once it gets close to what they're owed.
Posted on 2/9/15 at 12:29 pm to NoSaint
Who is responsible for maintaining the lot?
Posted on 2/9/15 at 1:00 pm to Clyde Tipton
quote:
If they owe money to the bank on it, a representative of the bank will be there bidding against you.
i do not believe thats how this works. its a downward bid from 100% ownership stake.
the bank can either pay the debts off and own it now, or buy me out later with the 5% penalty plus 1% per month, if i am understanding right. it isnt a bid up the price auction, its a downward bid in ownership percentage.
though id be fine with market price, whatever, i just dont think thats what this is.
This post was edited on 2/9/15 at 1:04 pm
Posted on 2/9/15 at 1:03 pm to LSUFanHouston
quote:
Who is responsible for maintaining the lot?
its a 3 year window (18 months if declared abandoned). in the meantime, id be responsible for taxes and basic upkeep but can roll that into the debts that the old owner would have to pay plus the interest.
its an empty lot, and literally next door so it shouldnt be $$$$ or much work for basic upkeep.
Posted on 2/9/15 at 4:46 pm to NoSaint
surprised to not get any real feedback ---
normally you can find someone for everything on here!
normally you can find someone for everything on here!
Posted on 2/9/15 at 6:12 pm to NoSaint
If you bid less than 100%, and you get the property in the tax sale, you will never get clear title. By bidding 100%, you can go to CDC after 3 years and get a judge to sign a judgment of possession giving you clear title. If you don't own 100%, you don't have clear title.
Posted on 2/9/15 at 6:13 pm to bayouman
If you only want a ROI, bid 1%.
Posted on 2/9/15 at 6:30 pm to bayouman
In this case Id only want the 100%
Is it particularly hard to have the transfer signed off on at the end of the period? Risk of not getting it or coming out with something other than ownership/payment with interest if you win at 100%?
Is it particularly hard to have the transfer signed off on at the end of the period? Risk of not getting it or coming out with something other than ownership/payment with interest if you win at 100%?
Posted on 2/9/15 at 7:45 pm to NoSaint
If you pay the property taxes for 3 years, and the owner doesn't come forward, odds are you WILL get the property.
Posted on 2/9/15 at 8:26 pm to bayouman
That was my impression. What would be worst case at that point though? It seems like it should be an easy one... And if legally abandoned it's 18 months instead of 3 years
Lot used to have a blighted home but has been abandoned empty for years. Been collecting tax bills and fines for condition (seems a heavy one for maybe removing the old house?)....The debt is high enough that it's probably not a hot target.... Seems like it should be easy to win and claim ownership eventually....
Lot used to have a blighted home but has been abandoned empty for years. Been collecting tax bills and fines for condition (seems a heavy one for maybe removing the old house?)....The debt is high enough that it's probably not a hot target.... Seems like it should be easy to win and claim ownership eventually....
This post was edited on 2/9/15 at 8:27 pm
Posted on 2/9/15 at 9:39 pm to NoSaint
quote:
And if legally abandoned it's 18 months instead of 3 years
Property needs to be officially declared as blighted to be considered for the 18 month redemption period. You also should check to make sure there is no other liens on the property. If the local government tore any structure down or mowed the grass, etc. you may have a lien on the property. You also should check to make sure that the sheriff researched and attempted to contact all interested parties prior to the sale. Failure to provide adequate notice can nullify the sale. You will also have to send notice to the tax debtor during the three years. Not real sure about the timing of that notice but you will have to do it and show the court.
Posted on 2/10/15 at 6:55 am to fatboydave
It does have a lot of city fines for code enforcement making up the total cost- including a large $15k bump that I'm guessing might be when they tore down the blighted house that was there. That's the bulk of the money in the total. It's had code judgements against it as recent as the last 3-4 months. I guess I'm going to stop by the city offices next. I found the one that runs the sales- so I guess that's the first stop
Posted on 2/10/15 at 9:41 am to NoSaint
I actually do a fair amount of this work. Chances are you will be underbid if it's in a good area. Is it listed on Civicsource?
My advice in cases like this is to track down the owner and make him an offer he can't refused. If you buy the tax title he can redeem it for three years and if he wasn't properly notice for up to 10 years.
My advice in cases like this is to track down the owner and make him an offer he can't refused. If you buy the tax title he can redeem it for three years and if he wasn't properly notice for up to 10 years.
Posted on 2/10/15 at 9:48 am to Rev1897
rev - it is on civicsource.
its a mixed bag neighborhood, but moving the right way.
id love to find him and make an offer, but havent been able to track down the contact info for the owner, simply a name. any tips? That was my plan when i stumbled into the tax sale listing.
its a mixed bag neighborhood, but moving the right way.
id love to find him and make an offer, but havent been able to track down the contact info for the owner, simply a name. any tips? That was my plan when i stumbled into the tax sale listing.
Posted on 2/10/15 at 3:17 pm to NoSaint
One thing to be aware of, is that if you intend to sell the property down the road, most title companies cannot write a policy on that property if the property is in LA.
If title work cannot be written, then you better hope the buyer is paying cash and not financing the purchase because no bank will finance the purchase w/out title insurance.
Maybe this has changed, but this was the case at one point. I would check with a title company for this answer before proceeding in the event you plan to sell the property down the road.
If title work cannot be written, then you better hope the buyer is paying cash and not financing the purchase because no bank will finance the purchase w/out title insurance.
Maybe this has changed, but this was the case at one point. I would check with a title company for this answer before proceeding in the event you plan to sell the property down the road.
Posted on 2/10/15 at 6:52 pm to Rev1897
10 years? Has something changed since Smitko?
Is that acquisition through 10 year prescription that you're relying on?
The absolute nullity possibility makes many leery of improving tax purchased property.
Is that acquisition through 10 year prescription that you're relying on?
The absolute nullity possibility makes many leery of improving tax purchased property.
This post was edited on 2/10/15 at 8:25 pm
Posted on 2/10/15 at 8:49 pm to TSLG
quote:
The absolute nullity possibility makes
Notice is very important. If it is going up for sale then Archon should have researched the owner and interested parties.
Posted on 2/10/15 at 9:38 pm to TSLG
I'm not familiar with absolute nullity. Can you explain?
Posted on 2/11/15 at 1:04 pm to secondandshort
Basically, the only way any title insurance company will insure the sale is if there was actual notice to the record title owner.
As for the absolute nullity question, if there is any doubt as to whether the record title owner received notice, he can nullify the sale as a due process violation under the US Constitution because it constitutes a government taking without due process. 10 years acquisitive prescription might cure this as you'd be possessing with title.
to the OP -- if it's in a good neighborhood and you can't find the owner, wait till the very last second and bid on the property on civicsource.
Not intended to create legal representation/relationship here, etc.
As for the absolute nullity question, if there is any doubt as to whether the record title owner received notice, he can nullify the sale as a due process violation under the US Constitution because it constitutes a government taking without due process. 10 years acquisitive prescription might cure this as you'd be possessing with title.
to the OP -- if it's in a good neighborhood and you can't find the owner, wait till the very last second and bid on the property on civicsource.
Not intended to create legal representation/relationship here, etc.
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