City Auction On Foreclosed/disstressed Properties
Q: Several properties are being auctioned in two phases, sealed bid proposal and the remaining live auction. At what point is it too late to contact the homeowner and cut a deal saving them from foreclosure?
Q: If the assessed value of the property is much lower than the taxes and the cost of restoration, henceforth no one bids on the property what does the city then do with the property, do they lower their starting price at a later auction?
A1: Some times you can still purchase it the same day of the sale, if you can get it filed at the courthouse in time.
A2: In my county the property is resold for whatever they can get so they can get it back on the tax rolls. At the second sale, in my county, the property is free and clear of all liens, back taxes, Etc.
Check and make sure, if you decide to by at the first sale, that they are not just auctioning the property for taxes. If they are you will want to check the property for other liens and mortgages. We have people that buy properties at the courthouse auctions that what they pay and the remaining liens are more than the property was worth. Be careful.
In Florida, the only liens that survive a tax sale are governmental or municipal liens such as an IRS lien, code enforcement or county liens. Any and all mortgages will be wiped out as the holders of any interest in the property are legally notified in time to prevent the sale by paying the back property taxes.