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Tax Auctions
Posted on 8/17/24 at 7:07 pm
Posted on 8/17/24 at 7:07 pm
Anyone here ever done the property tax auctions? The Landmass is doing them a week from Monday. Interested in hearing from people who've done it.
They're on Govease now and you get 18% annual interest if the previous owner redeems it.
Also curious if anyone here has taken over a property that wasn't redeemed.
They're on Govease now and you get 18% annual interest if the previous owner redeems it.
Also curious if anyone here has taken over a property that wasn't redeemed.
4
Posted on 8/17/24 at 7:36 pm to Bestbank Tiger
I do it. It’s ok. The return averages 14 percent for me. Keep in mind you have to continue paying taxes on property during 3 year redemption period.
Posted on 8/17/24 at 7:39 pm to Dandaman
I should also say that the great properties are scooped up by professionals and it’s tough to compete with them.
Posted on 8/17/24 at 7:51 pm to Bestbank Tiger
I've bought properties from tax deed auctions. Never actually bought the note or whatever you call it
Posted on 8/17/24 at 7:52 pm to Dandaman
quote:
I should also say that the great properties are scooped up by professionals and it’s tough to compete with them.
Yeah, I was hoping to grab some under the radar ones. Smaller amounts that the pros might miss because there are thousands of auctions and they don't have time to vet every property.
Posted on 8/18/24 at 8:39 am to Bestbank Tiger
You will have no problem getting smaller ones.
Posted on 8/18/24 at 9:14 am to Bestbank Tiger
There's been threads on this board in the past discussing them.
My one word of advice is that you should be wary that if you ever want to sell it, clearing title will likely be an issue. It's not like buying foreclosure properties from sheriff's sale. There's a lot of due process defects with tax sales where the tax debtors don't ever get adequate notice. And it's frequently impossible to cure because you would need to track those people down and get them to sign something, but the entire reason it went to tax sales in the first place is because those people went MIA (died, in jail, on drugs, etc.)
Maybe you'll have luck just holding them for redemptions, but I'd venture to say it won't be long before you get one that you're sorta stuck with because they never come to redeem and you can't sell it cleanly either. So have a contingency plan for what you're going to do if you can't offload one quickly. I would say you could just rent it out in the interim, but even that's risky if the old owners do show up while you've got a tenant in there. It's a messy situation.
My one word of advice is that you should be wary that if you ever want to sell it, clearing title will likely be an issue. It's not like buying foreclosure properties from sheriff's sale. There's a lot of due process defects with tax sales where the tax debtors don't ever get adequate notice. And it's frequently impossible to cure because you would need to track those people down and get them to sign something, but the entire reason it went to tax sales in the first place is because those people went MIA (died, in jail, on drugs, etc.)
Maybe you'll have luck just holding them for redemptions, but I'd venture to say it won't be long before you get one that you're sorta stuck with because they never come to redeem and you can't sell it cleanly either. So have a contingency plan for what you're going to do if you can't offload one quickly. I would say you could just rent it out in the interim, but even that's risky if the old owners do show up while you've got a tenant in there. It's a messy situation.
Posted on 8/18/24 at 2:17 pm to Dandaman
quote:
3 year redemption period.
3 year redemption period. That's steep. I know some counties in Missouri are similar to that. There are others you can get the property after its been approved by a judge.
My experience in Missouri the best county for property tax auctions is Jackson County which has city of Kansas City in it.
The KC one starts tomorrow. Its a lengthy list but you won't have to wait 3 years. It goes to a judge and if no objections you get the property in December.
Posted on 8/18/24 at 4:57 pm to Bestbank Tiger
I have.
Or to be more specific, I handled the paperwork for my parents who did.
My dad bought several tax sale properties in Jefferson Parish years ago and they all got redeemed except for one.
You can't lose money because at the very least you get your costs back.
Most end up getting redeemed during the three year waiting period, but if one falls through the cracks, you get a windfall.
If the redemption period passes, you can file a suit to quiet the tax title and get a basically free piece of property.
Or to be more specific, I handled the paperwork for my parents who did.
My dad bought several tax sale properties in Jefferson Parish years ago and they all got redeemed except for one.
You can't lose money because at the very least you get your costs back.
Most end up getting redeemed during the three year waiting period, but if one falls through the cracks, you get a windfall.
If the redemption period passes, you can file a suit to quiet the tax title and get a basically free piece of property.
Posted on 8/18/24 at 8:43 pm to geauxpurple
quote:
If the redemption period passes, you can file a suit to quiet the tax title and get a basically free piece of property.
It's not that simple anymore. There's been some court cases that have shot this down for lack of constitutional due process, and the quiet title proceeding really does nothing to cure that lack of notice. You may be stuck holding onto it for 10+ years and getting a judgment based off good faith acquisitive prescription. Unless you can find the old owners and get quit claims, or you can prove they're dead and had no heirs or something.
That being said, it may still be a good return on investment, just don't expect it's always going to be a quick flip. Although there could be a buyer interested in buying it without title insurance, depending on their plans for it. But you probably will take a hit on the price since it's got a cloud on title.
Posted on 8/18/24 at 9:06 pm to Neauxla_Tiger
Yeah. Everything has to be done properly including the notice to the owners. The rules are strictly construed against the tax buyer because this is a harsh outcome for the owner. Often the owner is dead which is why the situation develops in the first place.
Mine went very smoothly and now all time periods have passed even if something like this would crop up.
Mine went very smoothly and now all time periods have passed even if something like this would crop up.
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