All Forum Posts by: Mitch Freed

Have you been inside the property lately? What if he is making drugs in the house...i.e Crystal Meth...

I agree that if he is paying on time then don't rock the boat...but if his drug activity could potentially cause a fire...or cause long term damage that you will have to hire a special clean up crew for...then take action now.

Other investors can bid up properties just to make sure you don't come back...they can turn great deals into money losers just to insure their interest as the only ones who get the good deals at auctions.

A redemption period gives the previous homeowner a chance to redeem the property after they have been foreclosed...there are typically redemption periods with IRS seizures...judicial foreclosures...and, as the new owner, you do not have posessory right during the redemption period...but this is where it gets a little complicated...the tax stuff is extremely complicated and confusing..most investors won't concentrate too much on it...which some might argue leaves it open for some money to be made if you have the right resources and know the ins/outs of all the rules and laws.

I've attended some IRS foreclosed auctions...and IRS seized auctions...but I missed the latest property tax auction here...I looked at the list of properties they had...nothing to shake a stick at unfortunately.

I would treat a property tax foreclosure like any other foreclosure...but check to see if there is any sort of redemption period...there might not be for a property tax foreclosure but that could vary by state law.

There should be an inspection period for the property...so if you are serious about one I would get your inspector out there in advance.

Also, get familiar with the auction rules...and attend an auction before you actually bid on anything. There is usually a group of investors that go to every auction and they don't like outsiders.

In Portland, OR I usually check with the county for property tax foreclosures...they typically hold their auctions once a year...depending on their inventory maybe more often.

So I would check the county website for whatever city you are looking in...i'm sure there are multiple counties you can check...they will have a section for property tax auctions...and there should be someone you can call...they will probably put you on their mailing list and they will notify you when they are having sale...

at least that is how it is done here in Portland.

Thats a tough one to get general info on...there are so many variables depending on where you are located and what type of tax you are speaking of..property vs. income etc...foreclosure vs. seizure as well.

Are you a first time investor or first timer in the investing of tax foreclosed properties...because the realm of taxes is not the place to get your feet wet investing in real estate.

Hi Mark,

Changing buyers can be a violation of the approval letter if it specifically states who must close the transaction.

We had a situation where we tried that and the lender made us get a new approval letter...delayed us a month..but we ended up getting the new letter and closed it eventually.

In your situation you have an approved short sale and now your end buyers lender is requiring you to be on title for 90 days correct? So instead you are going to have them step into your shoes and purchase the short sale property direct instead of buying it from you correct?

Do you plan to have them pay you the assignment fee in or out of closing?

Do you have a copy of the approval letter? If so, could you send to me and I could tell you with a little more specifics what you can and cant get away with...if you don't mind.

No problem! There are several good ways to get these deals done...i think everybody has their own strategy.

Countrywide, however, has adopted an a$$ backwards way of determing the value of the property.

Summerhomes,

True, I suppose they could refuse thousands of dollars because the property wasn't listed...but if it is a true cash offer...if you are persistant then they absolutely cannot refuse to negotiate a short.

And I'll bet that there is no official policy that the property must be listed...it is all in how you present your case to them.

Hi David,

Two were Countrywide. Two were Litton.

Countrywide's process is a pain..they have their stupid value finders that tell them how much the property is worth...if you aren't within their range with your offer then they won't even order an appraisal. What is worse, they swear up and down that when they use these "value finders" that they aren't using comparable sales..so they won't let you submit comparable sales to back up your offer...but how can they possibly determine a value without comparable sales...then, they order appraisals and not BPO's...appraisals have a section in them that lists comparables...they are full of it.

But..I digress...so ya a few were Countrywide...one actually let me order my own BPO to challenge the appraisal they got..which of course the got back in September and were stuck on the value even in December. I challenged and got it lowered.

Furthermore...Countrywide somehow didn't even send these properties into default...no NOD was posted and the borrowers hadn't made payments in 6 months.

BTW...who is the lender? You are getting pretty close to the point where most lenders will just let it go..regardless if an offer comes in.

Most times they will assume it is a last ditch effort to buy some more time...i.e the borrower trying to stay a bit longer. They will see right past it if it gets too close to the auction date...

Also, if a BPO hasn't been ordered then I would get that offer submitted and request immediately that it happen...that will automatically give you a postponement.