Is there any way to get first dibs on a tax lien?

Is there any way to get first dibs on a tax lien?

Plymouth, MA · Member since 2015 · 6 posts · 0 votes
Recently I was notified of a potential opportunity in a nearby city by a friend who works for the city foreclosing on properties. The homeowner is 190k in arrears and the city foreclosed the day before yesterday. Currently the property is internet valued at 1.2mil and has no mortgage or any other lien holders. I went there yesterday to see if I could speak with the homeowner and pay the taxes and give him a fee on top of it in exchange for the property but he is kind of out of his mind. The guy eventually came to the door yelling and screaming saying he didn't have to pay taxes because he was a "cripple". So there was really no reasoning with him, he seriously believes he doesn't have to pay taxes. My question is is there any way I can ensure to be in the first position to buy the tax certificate so I don't lose the property? I have the money to invest in this but I'm afraid that someone more experienced will get wind of this and move on this before me. Any advice?
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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
10y

No way to be first in line that I know of.

It legally has to go to public auction.

If you find a loophole I'd love to know about it.

John

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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    10y

    No way to be first in line that I know of.

    It legally has to go to public auction.

    If you find a loophole I'd love to know about it.

    John

  • Plymouth, MA · Member since 2015 · 6 posts · 0 votes
    10y
    Bummer.
  • Real Estate Investor · Seattle, WA · Member since 2015 · 14 posts · 5 votes
    10y

    Is the property located in MA? If so, MA doesn't have tax liens but instead has redeemable tax deeds with a 6 month right of redemption.

  • Wholesaler · Lehi, UT · Member since 2015 · 333 posts · 144 votes
    10y

    He may have applied for an exemption because he is disabled which does qualify him for a tax break.  That is something you can research at the county courthouse or online under the delinquent tax department depending on where it is located.  That may be the reason he was screaming and yelling.  It is also against the law in some states to contact the property owner so you might want to check that out before you go knocking.  Anyways, you can find out when the tax lien auction takes place and then see if it is listed on the upcoming auction.  You could even search by property address to streamline your search so you don't have to go through a lengthy listing.  Good luck and I hope you do well if you are able to bid on it.  

  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    10y

    i once had a guy tell me he had an inside contact and could buy liens before the auction. While I was excited, I was also thinking this might wind me up in  jail. Nothing ever happened, I don't think the guys contact was as  good as he thought. 

    The best you can do is try to get inside the property so you have a better sense of the value than others that would be bidding.

  • Consultant · Ball Ground, GA · Member since 2015 · 228 posts · 100 votes
    10y

    You might want to follow-up in writing in a fedex envelope.  For the price of postage, I think it would be worth it to put your offer in writing and how you are doing him a favor.    Give him the "Cripple discount" and allow him to live there an extra month while you own the property.   Make it a win win.

    Best of luck William

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