Tax sales in 3 weeks - Posted by Tom Kirby (p.a)

Posted by Bill H on August 27, 2005 at 09:40:33:

So, there’s no other way to get this prop other then bidding on it? I assume that the hospital will bid on it too, to protect their interest.

Never assume anything!..Yes, you can buy the property subject to, you can lease option it, you can pay cash for it, bid on it at the tax sale…lots of ways to procure the property.

You initially said “I will get the deed and NOT record it” that intimates that you hold the deed and it has been delivered…if so you own it.

Proper way would be to tie it up with at PA as you say, do your due diligence, if all is ok and you are satisifed, then have the deed notarized and placed into escrow and close the deal.

If you find something try, in your short time frame, to resolve it. If you can fine, if not you have the choice of accepting the property as is and solving the problem after you own it or passing.

If all else fails, go to the tax sale, determine a price you can pay and still make $$$ and bid for it.

Otherwise pass, get some more education and try again. You should do something on your own. This forum is not to educate but to assist.

Good Luck,
Bill H

Tax sales in 3 weeks - Posted by Tom Kirby (p.a)

Posted by Tom Kirby (p.a) on August 26, 2005 at 05:22:23:

I came across a house thats on its way to a tax lein sale. Owner died in 2001 in the hospital.The house was last sold in 1964, may be free and clear. Taxes owed is 6,000 and there are 3 daughters. My guess is that they inherited the house and there was a lien on it from the hospital and because of that they didn’t pay the taxes.

These thoughts are speculaton on my part. I’m calling one of the daughters today. My question is how should I try to get the deed? Should I ask them if they want to sell or come right out and offer them a 1,000 each?
Tom

Re: Tax sales in 3 weeks - Posted by Bill H

Posted by Bill H on August 26, 2005 at 13:45:59:

What is it you are seeking to accomplish?

If you get the house now subject to then if there is a significant hosital bill judgment attached it is yours to pay.

If you wait to the tax sale and bid for it the judgment will probably be wiped off the title.

I’d do lots of title search to find out what it’s status is before I started throwing money at it.

Be careful what you wish for…you might just get it.

Good Luck,
Bill H

Re: Tax sales in 3 weeks - Posted by Tom Kirby (PA)

Posted by Tom Kirby (PA) on August 26, 2005 at 20:35:33:

>>What is it you are seeking to accomplish?>…
Hi Bill, what I’m thinking of doing is get the deed, not record it. Then if there is a judgment, neg with the hospital for a lower payoff. Now, you say they will probably be wiped off the title.
Is this true if there is a lot of equity? If so, I could use that in my favor. If not, then I could probably still neg with them by pointing out that I could get the deed and rent the house out indefinitely. This is a good renting area about 50/50 rent/own. I feel this would be a good neg point. What’s your thoughts on it?
Thanx, Tom

Re: Tax sales in 3 weeks - Posted by Bill H

Posted by Bill H on August 26, 2005 at 23:03:19:

Hi Bill, what I’m thinking of doing is get the deed, not record it…Guess what Tom! You just bought the property subject to all liens, mortgages, everything, warts and all. The deed does not have to be recorded to be legal. It just has to be delivered and when you get it the property is YOURS!

What makes you think the hosptial would negotiate? If they find out you are the owner and have some $$$ what is their motivation to lower their lien?

Now, you say they will probably be wiped off the title.

Tax liens are the most superior lien against the property. In virtaully all cases every junior lien including mortgages are wiped clean. Check you local statutes.

Is this true if there is a lot of equity? If so, I could use that in my favor.
Tax liens do not know or care if there is equity. They just want the taxes PAID.

If not, then I could probably still neg with them by pointing out that I could get the deed and rent the house out indefinitely.
How do you propose to do this? If the hospital finds you in ownership with $$$ they can seek to collect on the lien…in full. You got better lawyers and more money than the hospital?

This is a good renting area about 50/50 rent/own. I feel this would be a good neg point.
Now that you own the property subject to, the mortgatee does not care about your problems in renting or leasing. What they want is their lien PAID.

What’s your thoughts on it? Tom, I think you are relatively new to the industry and should get more education about what you are doing BEFORE you get yourself into trouble.

Good Luck,
Bill H

Re: Tax sales in 3 weeks - Posted by Tom Kirby (PA)

Posted by Tom Kirby (PA) on August 27, 2005 at 07:55:24:

>>I think you are relatively new to the industry and should get more education about what you are doing BEFORE you get yourself into trouble.>>

That’s what this forum is for. So newbies can ask questions and I appreciate it! Thank you Bill!

So, there’s no other way to get this prop other then bidding on it? I assume that the hospital will bid on it too, to protect their interest.

>>>>> You said:.Guess what Tom! You just bought the property subject to all liens, mortgages, everything, warts and all. The deed does not have to be recorded to be legal. It just has to be delivered and when you get it the property is YOURS>>

My question is When you sign a PA with the owner you then do a title search before you get the deed? I was under the assumption that the PA with contingencies can un do the deal if there were other liens found. Or if I put the deed in escrow it wouldn’t be considered delivered yet.

Thanx, Tom