Illinois Tax Investor....can We Talk??
Greetings-
Just need to hear your experience or suggestions on attending tax sales. Comments on sending offers to delinquent tax owners etc. Such as the process and any good or negative experience attending sales in Illinois. I'm a newbie and looking for good sound advice from someone in Illinois. Thank YOu!
Pam
Auctions in Illinois are very difficult with the large banks/investment firms competing. You mentioned 3-5% in another thread and even in the larger counties in southern Illinois that would make me happy. Most go for 0-1%. What the larger people are doing is playing the numbers game. They know if they buy enough they will get some of the subsequent taxes at 12% and most important get the property. Remember the rate you get at the auction is every six months. So if the bids are at 3-5% you are looking at 6-10% return for six months and one day. You may want to look at some smaller counties that the large investors ignore because there are not enough deals to be worth their time. I will be trying the same tactic this fall. Good luck!
Team Co-Op,
Thanks, we will NEED luck! Can you explain what is meant when you all say there is NO PREMIUM BIDS in Illinois once it gets down to 0%? Still trying to learn all the 'slang' for the auctions....thanks
PS....what's your opinion on mailing offers of Quit Claim Deeds to delinquent tax owners???
Quote:
On 2004-08-11 20:00, mxmom wrote:
Team Co-Op,
Thanks, we will NEED luck! Can you explain what is meant when you all say there is NO PREMIUM BIDS in Illinois once it gets down to 0%? Still trying to learn all the 'slang' for the auctions....thanks
PS....what's your opinion on mailing offers of Quit Claim Deeds to delinquent tax owners???
The lowest rate accepted is 0%. In some states where you bid on the properties total value a premium bid situation is encountered. What this means is if the lien is for $1,000 and you bid $500 your return is 100%. A premium bid (hopefully I am explaining this right) would be the lien is for $1,000 and someone bids $1,100. At some auctions where there is auction frenzy, it is actually profitable for the landholder to be deliquent on their taxes. They end up paying their taxes and get $100 to boot.
In effect there is no premium bid in Illinois. Zero percent is the minimum and the first person who yells "0" (or the person running the auction acknoledges) is the person who gets the lien.
Hi mxmom,
If you are interested in the Illinois tax sales and purchasing certificates you can go to www.taxbiz.com. There is some info and also a lot of tax certificates for sale.
Hope this helps
Benny
[addsig]
I can relate to several posts here, my Illinois experience has been few people show up to the sale but they all know each other pretty well.
Here are some of the bad experiences:
The parcel number gets called, nobody bids, I decide to bid at the last minute at 18%, boom........as soon as I bid the % rate gets driven down to 3 % or whatever. Frustrating, really frustrating when nobody was bidding to start with. It seemed that turns were being taken to bid me down as everytime that I bid only one person would bid against me.
The same thing happened above and the lady bidding against me withdrew her bid after she won.......sticking me with a % I really didn't want. I figured since the Treasurer let her do that I would to. So I did it back to her twice, drove her all the way down to bid 3%, I bid two she wouldn't bite so then I withdrew.
It probably isn't a good idea to get 'auction rage" but we both did and we both got stuck with what we didn't want.
Also, it would be a good idea to check out the Illinois compliled statutes online, everything is outlined there that you need to know about the multipliers, redemption periods (it's 2-2 1/2 for non-owner occ and non ag. land and 2 1/2-3 for owner occ. and ag land), etc.
Hello!
Some of the replys to this message suggests that the "big guys" are willing to accept a 0 to 1% bid because the sub-tax return is 12%. According to what I read in the Il Statute, the sub-tax bears the same interest as the original CP. Am I missing something?