Quick Question/ Tax Sales!!!!
I don't know much about this process. I'm a wholesaler and assign properties to investors so maybe tax sales may not be beneficial for me, I don't know. But here goes... What's the difference between a Judicial Sale and an Upset Sale??
In addition to that, in my area tax sales are only conducted once a year I think. But, the office of the prothonotary is printing me out a list of all the properties that are delinquent on their taxes and about to go to sale. I believe that this would be a good source of leads for me to deal with the seller directly and help them avoid going to the Tax Sale. Am I wrong in thinking this??
Can I purchase a property @ a Tax Sale with an assignment clause in the agreement??
Thanks in advance.
Chris1220
Some of your questions are too technical for me, but I can offer the following information:
Purchasing property pre-tax sale. Yes this can be an effective method to use provided:
1) You don't over pay i.e. end up paying more than you would at the tax sale.
2) Knowing ALL liens and encumbrances on the property. This can be a tricky area. One nice aspect of most (depends on local regulations) tax sales it that it provides a legal mechanism to acquire the property with many of the liens effectivly released.
Basically your approach is very common to a short sale.
As for assignment at a tax sale, for the few that I have participated in they were not permitted. Normally there is no negotiation of terms etc. at a tax sale. Once you are in possession of the deed (or even a tax lien for that matter) you can perform an assignment as you would any other purchased (RE) property.
_________________
Tax Liens are my Gig
Sometimes I pass, sometimes I Bid...
Glenn[ Edited by GlennI on Date 02/04/2004 ]
Thanks for the info Glenn. You're exactly right. Short Sales is what I'm into. Anyone else have any feedback???
Keep in mind the redemption period the owner has when the property is sold at a tax sale. A homestead is two years in Texas and only 6 months for non homestead.
Good LUCK and Thank You
Hope this helps some
Ted Jr
redemption period?? Let me guess, this means that the owner can occupy the property for a fixed period of time even after you purchased it???
chris1220------------
Redemption period. True in some states, not true in TX. In Texas the buyer at the tax sale has the right of immediate possession.
Good Investing****Ron Starr*********
Chris,
The Upset Sales price is described in PA statutes 5860.605. This is basically the minimum price or upset price that the parcel can be offered at.
In PA, you should be able to get a fee simple deed or its equivalent, after the tax deed auction, 5860.608 PA statute . They foreclose on the property prior to the auction and the redemption period has run out prior to the foreclosure. This is also true for NY.
Buying the property is always best, of course, however, if the price is too high, then optioning the property is second best. In that regard, it is worked just as an assignment. The further in advance that you can get the list of properties that are or will be foreclosed upon, the better. This allows time to find a new buyer who can then purchase your option.
Be very careful when doing a title search. The Tax Claim Bureaus of each county should have done the title search when in the process of doing their foreclosure action. That info should be available to you. Just make sure that all owners were served properly. This also verifies who all the owners are, something the person you are talking to may not be truthful about, because they are trying to get money from you. Be sure that all persons of interest were served properly or their lien might survive a foreclosure and even a tax auction. And watch for IRS tax liens!!!
If the minimum bid, upset price, was not met, then the county Tax Bureau can offer the property again at up to three more auctions. If no one buys then a hearing is held and it must be shown why a private sale should not be held. A private sale, with no minimum bid, is held to sell to the highest bidder. This may be called a Judicial Sale, but I am not sure. Ask the Tax Claim Bureau to clarify and verify my info.
Best of luck,
Mitchell Goldstein
[ Edited by Mitchell on Date 02/05/2004 ]
excellent info mitchelll, thank you.... Let me guess, you're a tax attorney, or an accountant??....
Chris,
Thanks for the compliment. My mother and wife tell me that I should have been an attorney.
I am a full time real estate investor / coach. I specialize in tax deeds.
Thanks again.
Mitchell Goldstein
Does any one have any idea where I can get tax lien or tax deeds list?
If you don't have an answer to your question yet, check out the tax assesors office in your courthouse. Either there or the Tax Claim Bureau
Chris
The Delaware County Court House WEB site has the definitions of Sherrif, judical, upset etc..... should mean the same for ChesCo
Ron Fellman