Sheriff Sale and the Auction
First Question
What are the options for a person that is about to go to the sheriff sales?
Second Question
A property doesn't sale at the aution, what are the steps for pursuing this property? Also, why would a decent deal slip through the auction?
[addsig]
When going to a Sheriff's Sale, you had better be prepared for only 1 of 2 options. One, watching, learning or two, buying.
You would only purchase if you had researched the properties that were of interest to you. That includes, looking at the tax foreclosure file, making sure that all parties were properly served; inspecting the property with the proper personnel, i.e. a rehab contractor and a real estate agent, who can tell you what the property is worth as is, with a PP&C, a Paint, Patch and Carpet $5,000. rehab, and after a full rehab. I do not believe that a safe bid is more than 50% of the current FMV.
If your state has a struck off list, I would not bid at all, unless someone else was bidding and you really wanted the property. I would make a very low offer to the county after the auction. The exception to this is if the lowest bid for a struck off list property is the amount of the back taxes. Then, I would go the minimum bid at the auction, presuming it is lower than the unpaid taxes.
As for why someone would let a good property go for unpaid taxes, why bother asking? I no longer bother to think about a sellers motivation. I simply accept that they have had some situation occur and I leave it at that. I concentrate on researching the property.
If you are going to try to buy the property prior to the auction then as part of the research you must speak to the delinquent taxpayer and finding out about the situation is very important. I just ask, "What is the situation?". The tax delinquent will usually spill their guts out, you should listen attentively, comisurate with them, empathise with them and then come up with a solution that makes you a profit. It may mean that you pay for the taxes, if they will deed over the property to you. Then they may rent from you and get an option to buy the property back from you, at a profit of course. You can take back a note for the purchase price, sell the note for cash and all go away happy.
Best of luck,
Mitchell
Mitchell,
Thanks for the information, it should be very helpful. It is good to know that there are options for people going to the sale.
Take care
[addsig]