Tax Sales - Posted by Tim(IL)

Posted by Dr. Craig Whisler CA NV on October 10, 2003 at 14:23:49:

…mistakes that dumb questions. The only really dumb questions were the one you were afraid to ask and lost some money on as a result of not asking.

This is a forum for beginners too. I hope noone will be afraid to ask about any and every thing that concerns them. I learned nearly everything I know by asking questions. For those who have heard this a hundred times close your ears: A wise man learns from others mistakes and a fool scarcely by his own. How many of us can invent the wheel? Copying the knowlege of others is much smarter that learning everything the hard way. The more good questions you ask the smarter you become. You asked some very good questions.

Have you asked the taxing authority for the mailing addresses where tax bills are being sent? They can’t just address them to a lot number.

Eviction depends on local law. Generally you would have to evict them, if the park manager doesn’t beat you to it. Hint hint.

You don’t need to pretend to be trying to help them. You are not obligated to help them. Do you buy groceries to help the grocer?

I suppose that taxing agencies must hold tax sales for deliquent personal property taxes on mobile homes. I’ve never come accross this situation in 30 years in this business. I’ve never even heard it mentioned on this board. Even I can learn something from this. Next time I’m in the DOH office I will ask about it. Maybe we’ve all been missing something good. Thanks for the tip. Sometimes the teacher learns more than the student.

Regards, doc

Tax Sales - Posted by Tim(IL)

Posted by Tim(IL) on October 09, 2003 at 16:56:44:

Does anyone have any experiances, thoughts etc to the following?

The town I live in publishes deliquent taxes in the newspaper, as a legal notice before filing a judgement for tax sales. Does anyone know the details and or leagality of approaching people beforehand and saying
"Look i will buy your home for your taxes due?"
I asked the tax assessor and she looked at me funny…
Is there some law against using this information in the paper to do this.
OR
is there any reason I couldnt put flyers on doors saying “If you are facing losing your home due to taxes call me bla bla avoid judgement yada yada”

Thoughts?

BTW it is a long list…how many typically pay between now and then. Court date is end of this month…

Thanks

Yes, of course you can buy them before the sale. - Posted by Dr. Craig Whisler CA NV

Posted by Dr. Craig Whisler CA NV on October 09, 2003 at 21:09:30:

Thousands of people do.

If she looked at you funny its probably because she has a job and has never heard of investors. Product of our wonderful school system.

The law requires publishing for two reasons.

  1. To (hopefully)give notice so folks who don’t know they are about to lose their property can rush down and pay their taxes.

  2. To attract investors in the hopes that these properties won’t fail to sell and revert back to the taxing authority. When the government gets them back they stop generating needed property taxes. Also it is hoped that the properties will sell for WAY over the minimum of back taxes owed plus sale costs. If that happens the overbid amounts go back to the former owners of the property. At least that way they get something instead of nothing.

Many times when you contact people right before the sale they will not know about the sale and will thank you and rush down and pay their taxes. You feel like a fool and a good Samaritan at the same time.

Probably 95% pay the taxes at the very last minute.

If you do your research early you will be spinning your wheels 95% of the time. There are some great deals in the remaining 5%. Happy spinning. Now you know why I seem so dizzy most of the time.

Door hangars will not be cost effedtive unless you only put them on prperties listed for sale. If you are going to do that why not knock on the door and get some real information?

There will generally be no judgments recorded against someone losing property at a tax sale, unless it is in a tax certificate state. Are you sure you aren’t thinking of a Sheriff’s sale of a foreclosure sale?

For further info look through our archives under tax sales or contact the real guru in this field, John Beck. He has a website and several SUPER tax sale books. They are all cheap too.

There can be a lot of money in tax sales. They make a GREAT way to acquire vacant land at about 5% on the dollar and then trading it for goods and services at near face value. Many people make a full time living at tax sales.

There is a lot to learn and a lot to earn with tax sales. I’ve done lots of them and I still do. Needless to say, I only do things that I find extremely profitable. Tax sales are one of them.

Regards, doc

Re: Yes, of course you can… - Posted by Tim (IL)

Posted by Tim (IL) on October 09, 2003 at 22:35:23:

I apologize for the dumb questions…but trying to clarify. thanks in advance for your help…

The lady at the tax office knows that I buy mobile homes, haven’t really gone into detail with her, other then causal conversation when I was paying taxes.

I was looking at a list that split mobile homes from regular property so out of the mobile home list I was hoping to match with lot numbers (We have 2 parks by same owner, all under 1 numbering system. If I get a lot number and nothing more I can find it no matter which park.)

I got a few matches looking in the phone book…but alas, several don’t have phones, at least not in their name. I was hoping to do a drive by and have an idea what the home would be worth before showing up for the sale, and be able to check lot rent as well before purchasing.

According to the paper they are seeking judgement “against the lands and lots mentioned and described in the following list” which I where i was getting the judgement info I mentioned before.

I see your comments apply to land purchases. I was looking at mobile homes at this point.

If I can buy a home for $150 in back taxes it would be worth it, as long as the back lot rent is reasonable.

I appreciate thoughts…don’t want to miss anything on this, being my first time attempting this. The notice was published today and the sale is the 27th, so any checking I do needs to be timely if I’m going to act on this.

(PS I am already okay with PM to work in this park, and he’ll verify lot rent and legal owner for me no problem if I have the lot number.)

What are your thoughts on knocking on the door and asking. Not sure how to word that like I want to help.

Also if I buy at tax sale do I have to evict if they don’t move willingly or is that done as part of the deal?

I am going to search archives now…but will look forward to any fresh thoughts…