Property With Abatement Lien Against It
I am going to tax sale next week. I have never done a tax sale before. I went to the recorders office and looked to see if any liens were against the property. I found the property has an abatement lien against it for $8009.
I was wondering if that lien is included in the minimum bid for the land, becuase the minimum bid is very high compared to a piece right next to it that is also owned by the same owner.
Basically how, do you know which liens are going to have to be paid after the sale?
Thanks
the basic rule is that tax liens take precedence over all other liens. But I don't know what an abatement lien is. Sounds like the EPA (either state or fed) has cleaned up the site and wants re-imbursed. This could be an exception to the priority of the tax lien since the government tends to protect its own interests.
I'd get the advice of an attorney on this one. Or a good title company.
HI,
The abatement lien is for removal of items off the property. He had a bunch of junk and this is a code violation.
Thanks for your help
Unamateo--(CA)-----------------
Yes, they may have removed an old building or mobile home or something. If this were so, it might mean that there is a well and septic system there.
The law is that all liens on the tax bill are included in the opening bid. If that lien was on the tax bill, you can find out by asking the tax collector's staff. They probably even have a self-help system where you can look up the last tax bill and see what was on it. I would guess that it is included, given what you have said.
Expect there to be many people at that sale, something like 800-1000. Expect properties to get bid up a lot. Be sure to have a clear notion of what the property is worth and what you are willing to pay for it. Many people will pay more money at tax sales for properties than the market value. Don't you do that.
Good Investing*********Ron Starr***********
[ Edited by RonaldStarr on Date 05/06/2004 ]
Unamateo--(CA)-----------------
If the opening bid is pretty high, there may be nobody willing to buy the property at the opening bid. Check with the tax collectors office before the sale and ask if they are going to bring up for rebid those properties which did not get a bid the first time around. And, if so, whether they are going to drop the new minimum bid down below the old one. If that be so, do they have amount or formula?
If they are going to reoffer the property at a lower price, as is allowed under CA tax sale law, it makes sense not to bid on it the first time around. So do not be the first person to bid on the proeprty. If nobody bids, it can be brought back. If somebody offers to pay the minimum bid on the first presentation of the property, then you can jump into the bidding, as it will not be reoffered later at a lower price.
Good Investing*************Ron Starr***********
starr- Do you mean it will be brought back the same day, or will it come back for auction at a later date.
From what I found, the properties around the area are going for $20,000 each. This property was bought at the last auction, but the buyer did not follow thru and it was an incomplete sale.
[ Edited by unomateo on Date 05/06/2004 ]
unomateo--(CA)------------------
By law, the tax collector can offer the property again at the same sale. It is not required. That is why I suggested you ask if it will be. The directions for bidding given out before an auction often mention if this will occur or not.
Good Investing********Ron Starr************