Another Tax lien Question (NY) - Posted by MichaelNY

Posted by Mike on March 02, 2002 at 19:56:18:

Great post.

I work in the FINANCE dept of City Hall. I have a guy who works on the tax liens. These unfortunately aren’t sales. They are selling the liens.(not the property). Like I said, I’m not touching that just starting out.

What I’m going to do is concentrate on historical listings, more specifically properties that are heavily under ownership by the city themselves. From what I hear the city never forecloses the property. Every year they auction the unpaid taxes, and if no bidders they take it on.

If anything else, I will use the list to target motivation. I know it’s all public knowledge, but if I can help anyone who can think of something…I’ll do my best…Thanks again for the responses.


Another Tax lien Question (NY) - Posted by MichaelNY

Posted by MichaelNY on March 01, 2002 at 14:51:10:

I don’t know if I’m interested in the whole tax lien deal yet. I will be able to see my city’s tax sale list before the papers. Nothing illegal here, all public info.

I guess I’m trying to convince myself that this is a list of motivated sellers. Am I barking up the wrong tree here?

I guess someone with a small amount due would easily pay it off, and the larger longer debts would be a hassle? Here the bidding starts at 12% and goes down. Foreclosure only after 3 years. Wouldn’t even think about that route. I would try to use the list to identify motivated sellers.

I read eveything in the archives, but I didn’t see the motivated seller angle. Probably because they’re isn’t one:)

Re: Another Tax lien Question (NY) - Posted by Linda in NY

Posted by Linda in NY on March 02, 2002 at 20:57:58:

I have read something about that you can offer these owners a small amount of money for a quitclaim deed. This way, you own the property for very little, you still have to make up the default taxes out of your own pocket, and then you can do whatever you want with the property - sell it, rehab it, lease/option, whatever.

The way to check out Tax liens(NY) - Posted by Mitchell

Posted by Mitchell on March 02, 2002 at 12:49:14:


If you take the time to check out the owners and the properties, you will find many good deals.

You can certainly get a list of properties that are three years behind and due to be auctioned at the upcoming auction. Usually, the lists are printed about a month prior to the auction and this leaves plenty of time to investigate the areas that you are interested in.

Contact the owners, get their story. If they sound like you can work with them, then go see the properties with a contractor. You will almost never buy at that first meeting. If there is an existing mortgage, you can purchase Subject to the existing financing. If free and clear, for the deed, you will give a note for an agreed upon amount for the equity. Do not agree to pay too much. They have not sold the house and the tax auction is around the corner. You can say that you can always buy it at auction without the existing mortgages.

Next, after seeing several properties, go to the county clerks office and do a preliminary review of the title history. Learn to do it yourself. You can certainly make a deal with a title company, asking them to do a preliminary review.

Be prepared to move quickly as the seller will almost certainly call you only one day prior to the tax sale. That is because Uncle Harry did not come through with the $7,000 that he said he would, and the house is lost to them. At that point, reduce the amount that you will give him because you do not have time to throughly check out the property or do a title search and you have several other tax delenquient property owners that have called you and your money is limited. The only out of pocket expense should be the back taxes and perhaps some moving expenses to this desperate seller.

You certainly should do a cleanup. A rehab may not be wise as you could sell the house as a fixer and still make plenty. Avoid rehabs if possible. Consider only doing what is necessary to put the house into sellable condition. You will find plenty of buyers who will have some DP and a desire to fixup themselves, releaving you of that task, expense and trouble. They will be amenable to buying on a land contract. This makes it easier to evict if they do not pay on the wrap around payment that you gave them. You can also sell the land contract to investors for cash if you want.

Good luck,

An idea… - Posted by Ben (NJ)

Posted by Ben (NJ) on March 01, 2002 at 17:33:11:

can you get hold of last year’s list? Cross reference them and if you see the same names again and again, you might have a hardcore delinquent much more likely to be a motivated seller.

Re: Another Tax lien Question (NY) - Posted by Tim Fierro (Tacoma, WA)

Posted by Tim Fierro (Tacoma, WA) on March 01, 2002 at 15:14:15:

Motivated Seller? Maybe.

If you see someone on the list with $4k in back taxes and is being sold at auction; that is only a part of the picture.

You never know if that person lost his/her job, has not worked in 2 years, barely supports themselves, and doesn’t have the money to pay the taxes on a free & clear house.

You can guess someone with a small amount due would easily pay it off, but what if they didn’t and/or can’t?

It’s a list that has possibilities, just like any other list.