South Florida Tax Leins
Hi. I am an investor in the south florida area, but I am now looking into investing in tax leins. I have found a property in south fl that has 3 years worth of leins on it, 2001, 2002, & 2003. I believe the redemption period is 2 years. Does this mean that if I purchase the 2001 lein, I can go ahead and foreclose on the property? I'm looking for any information from experienced investors.
I will be watching to see what folks have to say on this.
it is my understanding (maybe faulty) that in FL you can not convert a lien to a deed. What you can do to protect your interest is force a tax deed auction where the winning bidder pays off your lien.
If I am correct you get a good rate of return on the lien but you have no priority other then bidding the highest when it comes to a tax deed auction.
John
[addsig]
If the property has three years of liens that were not purchased by other investors there is probably a reason they were not purchased and I would be very careful. If they liens were purchased by other investors and they have not gone to deed, I'd want to find out why?
As to redemption period. Yes, I think you can pay all outstanding taxes and file for a deed. Of course that is no guarantee you will get the property as the amount you will be owed is just the opening bid at an auction of the property. It will go to the highest bidder.
If someone runs into financial difficulties and default on their taxes, the taxes do not to go away. They continue to be due. And it will mount up until "someone" PAYS them. The key word here is "someone", not necessarily the property owner, pays these back taxes. Read on!
Another way the county can raise funds is to sell the defaulted tax debt. This Tax Debt is sold as a TAX LIEN CERTIFICATE. The county gets it's money and that "someone" gets to own the debt or Tax Lien Certificate. This "someone" is guaranteed a substantial ROI.
In other words pay in total amount due.
Thank you to all of you for your response.
If you buy a certificate - after 2 sales of the date the taxes originally went delinquent you can call the sale. Once the property is sold you get your money and interest from the proceeds. If there were no bids then you get the property.
There are a lot of counties where the tax certs where no one bought the liens so the certs were struck off to the county. You can buy the certs from the county.
In most cases the properties are great properties. [ Edited by linlin on Date 12/18/2004 ]
Quote:
On 2004-10-22 10:29, sara81 wrote:
If the property has three years of liens that were not purchased by other investors there is probably a reason they were not purchased and I would be very careful. If they liens were purchased by other investors and they have not gone to deed, I'd want to find out why?
As to redemption period. Yes, I think you can pay all outstanding taxes and file for a deed. Of course that is no guarantee you will get the property as the amount you will be owed is just the opening bid at an auction of the property. It will go to the highest bidder.
The amount that is owed is not necessarily the opening bid. If the deed being offered is on a homesteaded property, the opening bid will also include 50% of the property appraiser's assessed value of the property.
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On 2004-10-24 02:27, linlin wrote:
If you buy a certificate - after 2 sales of the date the taxes originally went delinquent you can call the sale. Once the property is sold you get your money and interest from the proceeds. If there were no bids then you get the property.
At a Florida tax sale, there is no such thing as there not being any bids. The amount owed to the certificate holder IS the opening bid. If the property is homesteaded, 50% of the property appraiser's assessed value will be added to that number. If you are the certificate holder, that total figure will be automatically bid in your name.
Quote:
On 2004-10-25 00:32, GeneralSnafu wrote:
At a Florida tax sale, there is no such thing as there not being any bids.
Of course there is such a thing as "no bids". If no one wants the property and no one bids then there are no bids. The opening amount is the minimum bid to start. If no one bids and the cert is owned by an entity other than the county then the entitiy gets the property. If there are no bids and the cer is county owned the property goes on the list of "lands available"
I am interested in buying tax liens from Dade County that were not purchased at auctions. Can I just call up the county tax collector and request a list of available liens and the forms for purhcase? This will be my first time investing in tax liens and any advice is greatly appreciated?
Thanks
If dade county does not have the list on their website you have to send them a request in writing and pay for them to print and send the pages to you.
You then have to research the properties to see which are worth buying the cert on
Quote:
On 2004-10-29 17:45, linlin wrote:
Quote:
On 2004-10-25 00:32, GeneralSnafu wrote:
At a Florida tax sale, there is no such thing as there not being any bids.
Of course there is such a thing as "no bids". If no one wants the property and no one bids then there are no bids. The opening amount is the minimum bid to start. If no one bids and the cert is owned by an entity other than the county then the entitiy gets the property. If there are no bids and the cer is county owned the property goes on the list of "lands available"
You have not been paying attention. The next time you go to the auction, listen more closely. The Clerk's representitive will state the opening bid. That bid is the amount owed to the person bringing the property to the sale. (plus 50% of the assessor's value, if it is homesteaded property.) That minimum amount is, in fact, the certificate holder's bid. He is not afforded the option to not bid. The fact that he brought the property to sale, requires him to "bid" the minimum amount. If he is not in attendance, the clerk will be bidding that amount on the certificate holder's behalf.
Check the lands available list for the various counties and you will see lots of properties where the holders of the tax certs did not want them so they ended up on that list because there were no bids. Meaning no one made an offer and after the sale the cert holder who had the cert called did not want the property.
Quote:
_______________________________________
On 2004-10-25 00:32, GeneralSnafu wrote:
At a Florida tax-sale, there is no such thing as there are not being any bids. The amount owed to the certificate holder is the opening bid. If the property is homesteaded, 50% of the property appraiser's value will be added to that number. If you are the certificate holder,that total figure will be automatically bid in your name.
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If the property is not homestead, which value will be added to the opening bid?
If property not homesteaded the price is all outstanding certs, interest, advertising fees, county fees, etc - all that added up gives the opening bid. If it is homesteaded it is all that plus hald the county assessed value
Quote:
On 2004-12-18 01:08, linlin wrote:
Check the lands available list for the various counties and you will see lots of properties where the holders of the tax certs did not want them so they ended up on that list because there were no bids. Meaning no one made an offer and after the sale the cert holder who had the cert called did not want the property.
Please go back and read some of your previous posts in this thread. You were on the right track when you acknowledged that the certificate holder owned the property if there were no other bids but now you indicate other options are available to him. You can't have it both ways. You should be very careful when playing this game, as you seem to still be confused with the total process.
IN FLORIDA:
The properties that end up on "Lands Available" are properties where the general public was not interested in purchasing the original tax certificate (nobody bid.) Because of this, the county became the certificate holder by default. After the prescribed waiting period, the county brought these properties to a sale. At the sale, there were again, no bids from the general public. As the opening bid was the county's, they once again win the bid by default and the property goes on the list of lands available. In other words, they are stuck with the property.
In your case, as a private investor, the same rules apply. You need not attend the sale. If you bring the property to a sale, the opening bid is yours (There is no such thing as no bid.) If there are NO OTHER bidders, you win by default. You ARE now the proud owner of this piece of property. You ARE stuck with it. You can not tell the county that you do not want it. They have already collected all of the costs from you in advance, or they would not have allowed you to bring it to the sale in the first place. The only place it goes now, is on "YOUR OWN PRIVATE LIST OF LANDS AVAILABLE."
For the above reason, it is recommended that you do your homework before purchasing any certificates. NEVER become the certificate holder on any property that you do not wish to own sometime in the future.
I am in Miami-Dade County. I've checked the Tax-Deed sales list online and noticed that some properties have deliquent taxes on just 1 year (2004) while others are deliquent several years. Does that mean that nobody wants those properties because there might be something wrong with them? How long after I purchase the tax-deed on a property can I actually claim its ownership? Like many here, I'm eager to learn more about this, so any info, website, etc. will be GREATLY appreciated! THANKS TO ALL!
Beach-Patrol
For DK1400 - There are a few services that offer the lists of tax lien prop's in each county -in all states,in advance for a fee (per list basis). The fee varies w/ number /quantity of listings & type of details you desire, (i.e.)general or specific info for each list. Most of the time the fee per list is not over $100/list for the general . They don't charge a fee for being on there service, just drop you if you don't purchase over a period of time, You can send me a email for more details- not supposed to name it on this site! Hope this helps on your question, Mark