All Forum Posts by: Mark Abbott

I totally agree with John & Jerry above. I did a quick search for Cook County Delinquent Real Property Tax Foreclosure Process 

Here is a link for the Annual Tax Sale: http://www.cookcountytreasurer.com/annualtaxsaleba...

Here is the link for the Scavenger Tax Sale: http://www.cookcountytreasurer.com/scavengertaxsal...

Since I don't see any information to a specific date about the these sales I think You need to call the: Cook County Treasurer's Office, 118 North Clark Street, Room 112, Chicago, Illinois  60602

(312) 443-5100

I hope this helps.

First off I would consider what areas are You interested investing in!

There are 3 main types of Delinquent Real Property Tax Foreclosures.

Deed State - This is where each county in the state will sell the property & You as being the highest bidder gets a Deed to the Property.

Lien State - This is where each county only sells the Delinquent Lien on the property where You get a set interest rate that is set by each state's statutes. If memory serves Me right this interest rate can be 6 to 8% on the low end and as high as 24 to 25%. If the owner does not pay at the end of the redemption period You can apply for a deed at such time.

Hybrid State - There are a few states where they call it a Deed, but in actually the Deed acts like a lien where You get an interest/penalty rate of return. At the end of the redemption time period You can apply for a Deed to the property.

The next question once You decide on what You want to invest in, how far do You want to travel, for most beginners who has a full time job, in my opinion would be as close to home as possible, until such time You can afford to travel. 

There are also some states/counties do sell deeds/liens by the mail, but these are usually properties that went through a auction and did not sell. But if You look hard I'm sure You can find some good properties from time to time.

In Delaware I have done some quick checking for You. All 3 Counties conduct each Tax Sales a little different. So You need to read each statutes carefully. Kent & Sussex getting a deed acts much like a certificate of lien where New Castle acts like a certificate that acts like a conveyance. Either way it is all 3 counties have a 1 year statutory right of redemption.

Here is some links that might be of reference to start with:

http://www.co.kent.de.us/media/811484/Kent-County-...

http://www.nccde.org/DocumentCenter/Home/View/7655 specifically look at page 14

http://www.sussexcountyde.gov/property-tax-informa... There was not much information that I could find so You may have to give them a call.

I hope all this helps in Your endeavors Jerome.

Sincerely,

Mark

Sorry forgot the link 

https://www.wvsao.gov/countycollections/delinquent...

I have heard that some counties are starting up a "Land Bank" for areas that have been hit by a large amount of properties that are delinquent.

I did some research and found this on the West Virginia Auditor Office selling Delinquent Land, am not sure if this is any help to You.

I totally agree with Roy & Brian. 

If I can add, I would also consider, what priority of the deed, what type of properties are You interested in purchasing & how far are You willing to travel as well. 

Like I would take in consideration of the is the priority of the Deed such as in New Mexico is a Deed State but it is nothing more than a Quit Claim Deed, where you You step in the footsteps of the previous Owner. So if you are looking at a improved property i.e. there is a house on it and if there is lets say $150,000.00 lien on it You would be obligated to that loan. Now if You are looking at vacant rural land that has very little value, then You really do not have to worry about it. because no one is going to give someone a significant loan on a property that has extremely low values.

Now there are other States that have extremely high priority and eliminates bank loans, etc. with only a very few exceptions.

I hope this helps

Hello Everyone,

My name is Mark, I have been a full time Real Estate Investor for the last 13 years in the Delinquent Real Property Tax Foreclosures. I specialized in mostly Deed States & not so much in the Lien States or the Hybrid States. 

And now I wish to learn other areas of Real Estate Investing such as Performing & Non Performing Notes.

There are 3 typical Delinquent Real Property Tax Foreclosure procedures in the U.S. 

Typically pretty much all Delinquent Real Property Tax Foreclosure has a high priority in the foreclosure markets as they go, meaning it takes senior to most other liens that might be on the property (with only 1 state that I know of is the exception to the rule). I for one always like to read each state statutes that I want to invest in, so that I know for a fact of the procedure how each state conducts their foreclosure process. That is why bank/institution financing on the property, they require a certain amount of monthly payment to be set a side to pay the property taxes, because they do not want to loose the their security in the property.

1 - Deed State in which State sells/auction the property itself & then You own the property to do with what You wish to.

The state of Washington is indeed a "Deed State".  Once the sale/auction is conducted You pretty much own the property free & clear with a few redemption rights & errors of the sale might arise, but theese are very very few if any. If You are considering investing in the State of Washington I suggest reading the http://app.leg.wa.gov/rcw/default.aspx?cite=84 & more specific RCW 84.56 thru RCW 84.64.  

2 - Tax Lien State

This is a State that only sells a Lien on the property which has a very high interest rate of return & not the property. Once the lien matures by the state statutes You then can apply for a Tax Deed. Some states You can contact the Treasurer of that county & for a few hundred dollars they will do the paperwork for you other states You have to do a Judicial Process with an attorney.

3 - "Hybrid State" these are states where they call them a Deed State, but You read their process & they do not actually sell the property but rather it provides either a high interest and/or penalty rate & after the state statutes time elapse. You can get the Tax Deed or apply to get a Tax Deed.