All Forum Posts by: Kurt Kleespies

I agree it should probably just be taken care of by the mortgage company at the foreclosure auction.  It does seem a little odd but I guess it is what it is.

I have a duplex with 4 tenants and the water bill is roughly $100 for 2 months.  I imagine that mine is pretty cheap but $900??? That seems outrageous!  Yes.....I think you better look for a bad leak or some tenants that are really mad at you? :(

@Dan Vleck

Correct.....I agree that it would be quite a while before a tax lien would happen. I did go ahead and pay it because it was just a little under $500 and because I was able to find that statute that I listed above.

I do agree that the costs/annoyance of trying to fight with the homeowner after the fact for repayment would out weigh the small penalties. Had I not found that statute, I would have followed that same method!

Thanks!

Thanks for the reply. I agree that would be a normal situation where the property could get a tax lien and foreclosed on if not paid.  It is a slightly different situation though because I only hold the sheriff certificate at this point for a year because the homeowner has a one-year redemption due to such a small remaining balance of their original loan amount per MN foreclosure law.  The mortgage company paid the 1st half of 2020 but they did not pay the second half that was due on 10/15/20 and the auction was on 11/5/20.  I think the chances of redemption are quite high so it is a 50/50 shot on whether I will become the final owner.   My question was really whether those past due property taxes will be required to be paid back to me if they redeem or if I would have to fight the homeowner for repayment. From reading a little bit on the statute yesterday, it appears that they will be added to the total redemption price for the homeowner in the event that they redeem within the year.  I just didn't want to pay the property taxes and not be repaid for them if the homeowner redeemed.

If anyone else is interested in the MN statute, you can read more about it here:  https://www.revisor.mn.gov/sta...

If anyone else has any first hand experience in a similar situation, please let me know!  I am by no means an expert so anything that is relevant to the situation is valuable.  Thanks to those that replied!

@E.S. Burrell

This should not be your fire to put out. Power surges are commonplace and people know that. If it were your personal home and an expensive item was destroyed, you would look to your insurance policy.... because you are responsible enough to have one. So should your renter. If they failed to take out a renters insurance policy, that is a lesson learned. Maybe a tough lesson, but a lesson regardless. You literally had no hand in the damage of their TV.

In the future, it may be worth adding to your lease agreement and after reading your post I know that I will be adding it to mine!

Recently I was the high bidder on a foreclosure at sheriff's auction in MN and I currently hold the sheriff's certificate for the property.  This is my first sheriff's auction and there were property taxes that were unpaid plus a small penalty.  

Questions: Should I pay the property taxes that are currently past due?  Or should I wait until the redemption is up to see if I end up with the property causing the taxes to potentially be delinquent with the county + more penalty?  Would the homeowner be required to pay those taxes back to me if they redeem?

The redemption runs into 2021.  From what I understand in Minnesota, if they go past the current year when they were due (2020), they will be considered delinquent and the county could impose a tax lien on the property where there currently is not one.  In the event that the homeowner redeems, my understanding is that I can charge the original mortgage interest rate + reasonable attorney fees + property taxes I paid for the homeowner + necessary expenses to keep the home from declining?  

Am I correct in assuming that I can charge the property taxes that I would pay on their behalf back to them in the event that they redeem?  If anyone has some experience in this area or specifically with this in MN, I would love some feedback.  My thought is that I should pay them to avoid additional penalties/problems and I am hoping that they would legally be required to repay them to me as part of a redemption total.  

Well, this is obviously pretty late!  However, I have found myself in the exact same position....  Won a sheriff's auction in MN on Thursday last week.  Secured insurance from a small local mutual insurance company.  They, as of now, did not list it as unoccupied but they did question whether I had the actual authority to be paid out on the property in the event that there was a major catastrophe.  My attorney says that I do.  I assume that I am just like a mortgage company that requires insurance on a property that I am financing since I hold the sheriff's certificate and I am now earning interest on the original mortgage in the event that they actually redeem.  I cannot verify or trust that the homeowner is carrying insurance and I am not listed as a beneficiary on the policy so I have to do what needs to be done to protect myself and fight for it in the end if something were to happen.  A mortgage company would do the same if put in that position after foreclosing.

I am hoping that you can shed some light on your experience now 10 months later with your purchase and any problems/pitfalls you have experienced so far?  My advice back then to you would be to shop around with insurance brokers and you are likely going to find one that will insure it.

Thanks for any follow up you can give!

@Jeromy Jordan

Absolutely! Do your due diligence.... Find a GOOD inspector that has a lot of experience and go through it with them. Not only will you get the info you need for the duplex but you will make a contact that will hopefully have good advice and possibly introduce you to other contacts for renovation/construction, electrical, plumbing, etc for this and future projects.

@Nikki Closser

Great job on doing your research and taking that chance! Looks like you scored an awesome deal. Way to go! Keep making those little improvements for your tenants and get those rents up to market level! $$$ 👍

Just started using Innago. System is very easy but checked all the boxes for echeck, cc option, online and e-signature leases, ability to have co-signer mobile e-signature, tenant screening with Transunion, auto email reminders sent to tenants, leases and biking can be split between multiple tenants in the same unit, auto late fee, video upload for maintenance requests, maintenance tracking, etc. Free for landlords. There is a $2 fee for ACH payments but landlord can absorb part or all if desired. Standard cc fees for that type of payment. Seems like a very solid system so far. Unlimited number of units and multiple user capable. Customer service has been amazing by email that I have used. Replied to me within minutes on a weekend at midnight, twice!!