Amazing tax deed potential in Hamden county?

Question

Ok so I've done some reseach on what the difference is in a tax lien and a tax deed. found out in mass we have tax deed redemption at a 16% interest. so i was poking around my local tax lien database properties online, and I just am typing in street names especially high market places in massachusetts.

There are a lot of nice houses with tax liens owed. I found some over 2 years old reaching $3,000- $7,000 in taxes owed some over the course of 4 yrs.

But the assessor database says these houses are still owned by the owners some are city owned but most are in the owners names. These are really good properties in very nice areas, How do you recommend going about talking these owners in to possible selling they're homes for what they own in taxes before the city claims it anyway.

These comps are like $140,000-$175,000 for these houses, Is it even possible to get these properties under contract for only what they owe in taxes to wholesale then to hungry buyers, maybe even offer them at most $20,000.

Ned Carey · Answer

@Alexaundra McCormick The best way to approach them is call them up and ask if they want to sell. Alternatively mail to them but I think calling is more effective.  If they are nice houses and they still live they they are not likely to let the house go cheaply. Most won't be interested but some will and those are the ones you make  deal with.

I have had people offer me houses for $1 but it is not likely going to happen on a $150K house in good condition. Keep in mind if they have a mortgage even if they want to sell to you for $20K they may not be able to if they owe more than that.

Good luck - Ned

Shaun Reilly · Answer

I'd recommend checking any that interest you to see what other liens there may be on the places.

Generally if there was a mortgage on a SFH or MFH you would expect those to be escrowed and paid by the bank.  But it isn't a 100% on that.

Also if they paid of the original and just got a HELOC they would not have those payments taken out but could be leveraged a lot.

Also if they are in default on the mortgage the bank might have stopped paying the taxes until they foreclose of get final notice from the city they are going to take the property and then will pay.

If you can find an otherwise unencumbered property that is worth $140K with $7K of taxes and the owner will sell to you for that then that is one hell of a score.

People do stupid stuff all the time but these people would have to be nuts to not just pay the taxes or list it on MLS for 15-20x that if it is in livable condition.  If it is in rough shape might go on the low end of that but there are definitely options that should easily net them a ton more money than that.

I still say go for it but temper your expectations on how many of these you might actually get.  :)

Mike Hurney · Answer

@Alexaundra McCormick I'd check with the Assessor and see what their policy is. Some states routinely have RE Tax Auctions ASAP. In Massachusetts this is rare, it's a 14% lien for the City/Town.

Alexaundra McCormick · Answer

ok thats helpful yea as of right now I was just looking at our local assessor. for owners of homes. but you are right @Ann Bellamy  I went down there awhile back when I thought of starting out in Probates and they directed to the deeds. I will check it out online thanks evryone. I guess it doesn't hurt to ask them just in case they really do need to sell if they're are on a deadline for an auction.

Ann Bellamy · Answer

Also, Alexaundra, you should also understand that the assessor database is not at all reliable when it comes to owner information, or the legal use of a property (think 2 units vs 3 units).

It sometimes takes quite a while for the assessor records to catch up.  To research what is actually going on with title and tax liens on a property, you should use the registry of deeds.  I think you were given that in a previous thread, but to find almost all of the registries in MA, use masslandrecords.com

Ellis San Jose · Answer

When I hear the phrase " How do you talk these owners into selling? "

It reminds me of One of my favorite stories when a young entrepreneur pitches  a wealthy venture capitalist with his new business idea. It goes something like this.  After hearing the presentation the venture capitalist clears his throat and replies...

"Son....In business you have some choices, You can be in the business of selling vitamins.  Vitamins are definitely good for you...You can tell people that if you take these vitamins I am selling, it will be good for you and you will feel better"

Then he continues....Or you can sell Vicodin.   If you find a person who has just had a bad accident and is bleeding on the side of the road with searing pain in his body and he just want the pain to go away.  How hard do you think you have to convince him to buy your Vicodin?    Which would you rather be selling vitamins or vicodin?"

Find the sellers in the most pain in need of relief and sell the vicodin.

Amazing tax deed potential in Hamden county?

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