A Bought Tax Lien Gone Bad.
Hello,
I am an investor in New York City. Back in May 23, 2003, I attended a Queens NY auction and won a land lot that was as a tax lien certificate. I had to place a 10% deposit with the assigned referee in an escrow account and had to sign a 'Term of Sales' with the referee. I was told I had 30-days to close for the land. I would receive the title & deed clear and free of any discrepancies when I closed. I would also like to add that this is my first experience doing something like this. Well, I had the money before the 30-days and was allowed to setup a closing before the end of the 30-days. Therefore, I contacted the referee to close, and then it happened, the beginning of the end. The referee explained he needed more time to secure title insurance on the land and he was waiting to here back from the Bank that had possession of the title. Months went by. Finally, I find out from the referee that there was a discrepancy in the title and a lien with the Veterans Association had not been cured before it went to the auction. He further explained that he was unable to obtain title insurance because of this and offered to return my deposit. I refused and said I would wait until the lien was cured. My lawyer did warn me that it could take some time. Now, meaning today 11/30/03, I have hired a second litigation lawyer involved to find out what the amount of the lien is. I find out that the tax certificate lien on the property was purchased by a national company that buys bulk liens and foreclosures from banks and goes to auctions on their behalf, gets rid of the property for the bidding amount, and then takes a percentage for the service. The Company is called JER Roberts and they have a law firm called Certilman and Balkin that handles their closings. This law firm tells my lawyer that they are still researching the title and are in the process of curing the title on the property. The problem I have with this is, I won the auction in May and its now December. I also paid for a title search, which did not come up with this uncured lien with the VA’s office. It has been a confusing, upsetting mess. So currently, I am awaiting to here the results of the research done by JER Roberts law firm. If I cannot receive the clear and free title by January, I plan to just get back my deposit. The reason I was holding onto this property for so long, was because I had a buyer and was going to flip the property to that person and make a good profit. The ‘Terms of Sales’ contract I signed indicated that the bank and anyone associated to them are not responsible for problems that may arise during and before the closing. I want to know what choices I might have instead of just getting back my deposit or is their anyway I can get in touch with the VA's office my self, or is their any option to sue? Sorry the long story, but I feel it is important people understand the risks involved in these types of transactions.
[addsig]
It has been a LOnnnnnnnng time for me but it used to be in NY the original owner had a loop hole they could squeez through for up to a year.
Things might have changed though.
Can you go into a little more detail Mr. Mike?
to get a hold of the VA dial 1800 827 1000 its a toll free number for every state I used to work for the VA am now retired I do know that as I was retiring the VA was turning all VA properties over to a bank in Florida here is a quote form there page.
The Department of Veterans Affairs (VA) has awarded the Property Management Services Contract for managing, marketing, and selling VA acquired properties throughout the United States and its territories to Ocwen Federal Bank FSB. VA will begin transitioning properties to Ocwen around December 8, 2003, and expects to complete the transition by January 24, 2004. In anticipation of this transition, all properties have been removed from the market. VA expects that Ocwen will begin marketing VA properties in early January 2004.
hope this helps good luck in your quest.
Quote:
On 2003-11-30 23:23, dgoldoff wrote:
Can you go into a little more detail Mr. Mike?
I am sorry I took so long to reply.
I just noticed you asked something.
It was quite some time ago but I BELIEVE that the owner of a property had quite a long time to just show up, pay all the back taxes, loans etc and walk away with the property.
Sort of like when a woman puts her baby up for adoption and then 3 years later she shows up, thanks the new parents and the court gives the child back.
Typical liberal laws which protect people from their own STUPID actions instead of having to take responsibility for themselves.
Well, I have Russian friends in Briton Beach who tell me that for $500 they can "persuade'
anyone, that ANY problem can be solved, PERMANENTLY! Just Kidding, sorry to hear about your misfortune.
Just to make it more interesting, Ocwen has all the VA properties being handled from overseas, and apparently english wasn't high on the required job skills list for that office. I forget what country it's being run from.
Mykle
Sorry for your problem. The answer is to take the matter in your own hands and make time and start to run it. You call everyone concerned and in time you will have the answers and can act on them. Most people give up or try to get others to do it for them.
I would also go backwards on the owner of the lot and see if he would like out at this time you might be able to gather it in from that angle.
As to all VA loans having been assigned to an operating private bank, who then laid bank service off on Bombey or Manila or who knows where. The Computer Companies like Dell did this and it has caused some very interesting problems in service. Their english is in many respects better then ours, but their tech background, schooling and training in the actuals is strictly book and very little hands on and it shows.
Reading all of this has stirred my interest, I am a HUD qualified Broker and they play games like crazy, but so far not this bad. I will give the Vets a call on Monday and run that line it sounds interesting. Thanks for the Stimulae.
Lucius