Any guesses what's going on here? (LONG) - Posted by Tim

Posted by Tim on May 20, 1999 at 08:15:20:


Sorry, you’re right. The $13,720 is the cert value, not the taxes unpaid, but it does seem to be that taxes are unpaid since first half 1998. Cert value is based on tax appraisal which in this area runs about 35% of the estimated market value.

I did not get a chance to see if there was a mortgage involved with the transactions but will check when I get a chance to get back to the courthouse. The place where I get a tax duplicate is on a different floor from the place where I check mortgages. I will see about getting back down there today during lunch.



Any guesses what’s going on here? (LONG) - Posted by Tim

Posted by Tim on May 18, 1999 at 13:12:42:

Anybody have any guesses what’s going on in the following situation?

I was out looking for overgrown, abandoned, fire damaged, and otherwise clearly distressed properties for wholesaling last evening when I came across what seemed to be a good candidate. Tall grass, boarded up, in a neighborhood in city limits in an area where people seem to care about the appearance of their property. My estimated after fix-up value, approx $42K - $45K TOPS (probaly more like $32K - $35K). I would not offer more than $10-$12K as is.

Went to get some info from the courthouse so I could call, send a postcard etc. to tax address. This property transferred via Sheriff’s Deed in January 1998 for $16,200 (probably too much by the looks of the property now.) May 1998 it transferred again to a person with the same last name for $75,000. Of course, given the neighborhood, NO WAY ever worth this amount. Again, same last name makes me go Hmmm! No taxes paid since first Half 1998, total outstanding taxes due seems to be $13,720. Soon to be sold again by the Sheriff, I would guess.

So what do you think? Shoudl I steer clear of what may seem to be a fishy situation? Any advice or guesses would be great.


Re: Any guesses what’s going on here? (LONG) - Posted by Irwin

Posted by Irwin on May 19, 1999 at 22:56:05:

There’s no way to know what’s going on from the info given. Did you find any new mortgages against the property, i.e. mortgages since Jan '98? If so, some kind of mortgage fraud might be involved but it’s impossible to tell just from this info.
BTW taxes of $13,720 seem awfully high for a property this size. They would have to have been unpaid for many years, it seems.
All in all, unless I can get hold of an expert in analyzing screwed up deals like this, I think I’d steer clear.