Tax Delinquent list - criteria?

Question

Hi Guys,

Just looking at buying my first Tax Delinquency list, and as I've found previously, the criteria is what defines a good list . . . . .  or a GREAT list!

Having never bought a TD list, I'm interested to know what criteria I'm able to specify to the list provider, and what factors may refine the list to provide me with the most motivated sellers.

Looking forward to hearing your idea's.

Thanks

David Dachtera · Answer

Tax delinquent properties are usually sold by the county, not the property "owner".

There are a couple ways they are sold: either a tax deed or a tax lien.

When you buy a tax lien, you are essentially taking the county's position during any possible redemption period during which time the owner may be able to cure the delinquency and pay the taxes due. If they don't, the county will have a process in place by which you can acquire title.

When you buy a tax deed, you are essentially buying ownership of the property.

However you get title, it is clear of liens other than municipal issues such past due bills for water and sewer, etc., though that does not settle the issue of possession since the previous owner might still be in the property and you may still have to evict them.

So, your list source is likely to be any source which mines the public records for specific information and then sells lists of properties based on the information you select, such as tax issues. For your local county, you can also visit the county recorder's office and research the public records yourself.

Hope this helps...

Ned Carey · Answer

@Steve G.If buying a list I would look for  the same types of things you would look for in any other list; non owner occupied, out of state owner, high equity etc.

My guess is the best criteria would be owned for a long time and high equity.

Daniel Nolan · Answer

Just my take, in Florida most of all worthwhile properties whose taxes are delinquent  are paid  by an investor each year they become past due when the respective  county puts them out for bid. The winning investor wanting to control the property will be willing to pay the delinquent  taxes for the lowest amount of interest as a return on the investment.  This process goes on for at least  2 years until the 3rd year becomes due. The oldest investor can trigger a tax deed sale. An auction is scheduled,totaling up all the  outstanding tax liens plus county fees and accrued  interest as an minimum opening auction bid. The property goes to the highest bidder. If any non government leins were in existence,  they're  wiped out.  Any attached government  liens, IRS, code Violations etc,must still be dealt with by the new owner if they won the bid. If you bid on the property at the tax deed auction you must be prepared -due diligence  is paramount! You must pay in full with non refundable certified  funds.There are no safe warranties in this arena.

MY QUESTIONS:

1.Finally if you find the delinquent tax payer before the auction, he/ she might be willing to sell you the deed for a very reasonable price but now how do you deal with any Leins  (mortgages,judgements. Government) against  the property  if all you want to do is pay off the tax lien holders and County fees.??? Are most investors looking for free and clear properties w/o mortgages?

2. I have NOT found  in my county, a list that includes both the property owner name And the address of the delinquent.  I can get the property ID and address but not the name of owner. I'm  only interested in SFRS and want to weed them out from all the commercials, condos, mfg homes etc. Does anyone one have some suggestions  on these 2 questions in so far as Florida is concerned?

Thanks in advance for all your help!

Dan Nolan

Daniel Nolan · Answer

Thanks Tom,

Are your targeted properties that you mail to 45 days before auction date, free and clear of mortgages or have small manageable loan balances? I understand that the winning auction bidder has no concern about previous mortgage  balances. Just trying to understand   your exposures when buying properties ahead of auction.

I look forward  to your response.

Thank you

Dan Nolan

Tom Myers · Answer

Not all counties sell leins in Florida. In fact majority of them you buy the Deed at auction and the last person to own the house is the actual owner.

What we do is mail them before they go to auction. Very short Window. 45 day or less. We agree on a number pay cash to close. Once we close we then pay the Lein so we own it free and clear .

To get the Property owner and address all you do is go to the auction website and click on the button that takes you to the property appraiser website. it's very simple and fast..

Steve G. · Answer

@Ned Carey - Thanks for the reply.

The list from the county allows me to filter mailing addresses, but there are a heck of a lot of other information I don't understand - mainly with respect to the current status of the delinquent owner.

I spoke to the county tax office, but they advised that their policy prevents them from discussing the identifiers.

I guess I'll have to take my own advice, and keep asking until I get a result!

Steve G. · Answer

@Justin Hanson - in this business, it's all about perseverance and more perseverance!

Tell us more about the list, where it's from, how many on the list, what are your intentions for it (i.e.: Direct Mail, letters etc), and also about your plans for your marketing.

Justin Hanson · Answer

@Steve G. great information! I'm not currently looking in my county, so I can't just stop by. But, I've been emailing back and forth with a few counties and think I'm getting close to having my first list.

Steve G. · Answer

@Justin Hanson - Yes I have!

It takes time and perseverance to find the "right person" to speak with at any "official" office. I sat on the phone constantly over a period of several weeks, working through the different people, and eventually found someone.

The result was that the county actually advertises this list on their website, and I eventually found it by going through every page on their site.

Have you visited the office in person yet - usually there's someone who may know what to look for. If you let me have the county site, I'll take a look sometime in the week to see if I can help!

Message me!

Justin Hanson · Answer

@Steve G., I'm also trying to get a hold of delinquent tax lists for the same purpose but am finding that the treasurers office doesn't really know what I'm asking for.

Have you run into this problem?

Tax Delinquent list - criteria?

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