All Forum Posts by: G.D. Haizlip

George P,

It seems like you received a great deal of valuable input, but let me just add a comment/two.

Important: When doing your General "Due Diligence" check with your County Office for all lien types that may be attached to the property (e.g, 1st and 2nd mortgages, mechanic liens, and IRS Liens, etc..). Some offices may maintain a separate computer, book or reference area for IRS Liens, so Ask them, or the Tax Collector or the Designated Collector of Taxes in your area for that information.

Finally, be sure to follow-up on the input already provided to you here (on BiggerPockets).

Much Success As You Invest!

Lynn Z,

I am not sure if your question was ever answered, but in THEORY, there could be a number of reasons why an Investor(s) may bid so high on a property (see below).

POSSIBLE REASONS---Again---POSSIBLE REASONS ONLY:

They have researched the value of the property and realize that it is worth it: to bid so High/bidding that High/making that kind of Investment, or

DEPENDING on the State/County, the Investor(s) realize the owner or anyone who may have an interest in redeeming the property is less likely to do so (that is, less likely to redeem it)----or,

It may very well have been a scare tactic (to distract the competition). In some cases, you may want to check back with the City, County, etc.. to see if in fact the bid was ever submitted or if the Property will be re-auctioned at a later date.

Finally, if you have the courage (not to say that you do not), but if you do, Ask the Investor what attracted them to that property and why did they see it as a good Investment. Let them know you are learning. It may be worth asking, but do not be surprised if they are somewhat reluctant to share that information. After all, they are Investing Real Dollars & With A Good Sense of knowing what they are doing---in some cases!

Again, without know all of the specific details, these are just a possible/suggested reasons (in theory), in general. I hope this helps.

Much Success As You Invest!

Hello Joe,

It sounds like everyone has already given you some great input. Let me just add this with respect to the "language" you referenced in your note.

This is ideally why SOME Title companies option to wait until one year after the sale to insure a Tax Sale Property: that is they know that a former owner by-law has the option to challenge the sale within that year. To be certain that this applies to your city, county, or state, it is always best to check the Statute/Law as depending on the Sale Type and/or City, etc.. you may or may not have to worry about that. It is not that difficult to find/read. Let me know if you are not able to find it (I'll see if I can help you).

Finally, I suggest checking the Statute first so that if you should decide to apply for Title Insurance than you will know if you have to wait for one year or not to apply for Clear Title. If the Statute says that the owner has the right to file a claim after the Deed has been sold to you/the Investor, than you will know that you have to wait. Some Owners may not know this, so keep that in mind (It is something that you may want to keep closely-guarded as you continue to Invest with Success)!

Another Suggestion--Only A Suggestion: Unless you want to wait the one year: You may want To Market the Property that You have been granted a Deed to as such: "Property Acquired at Tax Deed Sale, Buyer Must Quiet Title."

Take Care & Remember to Keep In Mind what the others here on BiggerPockets have already stated.

Hello Jawsette,

I will try to keep it brief and simple so as to not make it sound any more complicated than it appears. I am not sure what your goal is, but most people tend to want to Buy a Property at a Substantial Discount/Low-Price.

Overview of Florida Delinquent Real Estate Tax Sales:

Florida has 67 Counties; All are required by Statute/Law to conduct the Tax Lien Certificate Sale which is usually held in the month of February. Some sales are conducted at the Courthouse or a Designated Room/Location. Some on the other hand are conducted Online. Finally, you can also acquire Tax Lien Certificates Over the Counter after the initial Tax Lien Certificate Sale.

The Initial Sale in which Tax Lien Certificates are bidded-on have a (2) Year Redemption Period. After the two years Investors may Apply for A Deed to those properties. If so, a Tax Deed Sale is scheduled, which is also a Public Auction, after the appropriate steps have been taken. As such, if you attended this sale, then it was, in fact, a Tax Deed Auction. If successful, you are granted a Deed to the Property which brings me to your question.

"FREE & CLEAR TITLE". You can clear title via "Quiet Title" -- a process that is usually handled by an Attorney-at-Law that is familiar with the process. This clears the way for you to Market the Property for resell. Also, you may want to look into Marketing the Property with a disclaimer such as: "Property Acquired at Tax Deed Sale, Buyer Must Quiet Title."---Only a Suggestion.

Hope this Helps you---Keep Learning and follow-up on some of the suggestions already submitted (here on BiggerPockets) to your response as well.

Much Success to you!

Greetings Jonathan,

Welcome to the World of Tax Sales!

First, this is not to discredit nor endorse Vesta, but they are Major Players/Investors in the World of Tax Sales. Vesta Acquires Properties at Tax Sale in GA and other Areas as well. Their official website is: http://www.vestaholdings.com

Second, I would like to suggest that you take a look at the previous or Past Tax Sale Q&As found here on BP. I have responded to quite a few questions, so you can check mine and you can also check for more under Tax Sales for Other very good responses to Tax Sale Questions---which will cover a broad area, but should give you a basic understanding of the process in various areas throughout the U.S.

Third, with respect to the Legal Notice(s), the Taxes were transferred and/or acquired "BY VESTA". The actual owners/Defendent FIFAs or whoever may have an interest in the property apparently have not been able to pay the required taxes to-date, so Vesta is proceeding to acquire the Property via Tax Sale, the next step in the process--being that in this instance the Taxes were acquired by VESTA.

The Sale is a Public Sale, so Vesta will most definitely be there to Bid on that Property as well. Once the property taxes are sold at the Tax Sale, the Redemption Period starts (in GA it's 1 Year and 45 Days).

At the one year mark, the owner of the GA Tax Deed, can proceed to "Forever Bar the Right to Redeem" a Tax Sale property--known as Foreclosing on Tax Deeds in Georgia respectively-- (other rules may apply in other states so don't confuse this process with other steps in other states--okay). If the owners or whoever may have a legal interest in the property still do not redeem once the notice to "Forecer Bar the Right to Redeem" is filed and placed in the legal organ, the Daily Report, they will have no more than 45 days afterwards to finally redeem that property, otherwise VESTA or whoever is the successful bidder, will get A SHERIFFS TAX DEED to that Property which is NOW legally owned by them--ALL Rights to Redeem have been forfeited at this point---

The new owners may then seek to get Title Insurance, keep it to own, rent, or plan to sell the property accordingly.

I know this is a bit, but I hope you get a good sense of understanding the process in GA at least---where I am also at this time. It's FUN and YOU CAN MAKE GOOD MONEY WITH A GOOD SOUND STRATEGY!

Take Your Time, Understand the Process, and Choose an Effective Strategy Before You Dive-In. Finally, you can always check by here at BP and ASK anyone of the PROS or VETs here a question and you will be ever so happy that you did.

Much Success As You Invest!
GD Haizlip, DTSL, LLC
President/Founder

Greetings Marko,

Re: Response To Your Questions

First, I want to say thanks for your reply.

With respect to "Free and Clear" Properties in Texas, California, Virginia and Hawaii: I am pretty sure. The fact is that most people are only familiar with Tax Lien Certificate Sales in most states. For example, Texas has 254 Counties; however, almost every city, town, and ISDs-Independent School Districts are also able to conduct Tax Sales as well----that's in addition to the regularly scheduled Tax Sales at the county level--these properties are subject to a redemption period. However, there are usually Properties which are "struck-off" to each respective jurisdiction. Struck-off properties may include back taxes, but you can also negotiate in some cases with the county/city on the price (again- in some cases). The catch is: most will usually include the back-taxes on a property that you may be interested in bidding-on. Also, some counties hold a number of properties-in-trust (in which anybody can bid-on)----TOP SECRET INFO--- SMILE :).

Next, California Tax Sale Properties (58 Counties) are usually sold only after about 5-Years of being delinquent. The counties there only sell Tax Deeds---no redemption period "Free & Clear" (**************) is the contractor for most sales in California. Virginia is very much like California except that the process may be slightly different depending on "who" is conducting the Tax Sale, but it is also a Tax Deed State (with no redemption period). VA has 95 counties and about 40 cities. Hawaii (5 Counties) is also a Tax Deed State. Finally, some states "bank" properties that are not sold at the initial Delinquent Tax Sale. Most remaining/left-over properties are vacant lands or properties that require rehab work. However, also keep in mind that in some counties there are too many properties and not enough bidders, so there could be deals still left on the table (so it's important to perform your due diligence on all properties of interest to you and/or your Investors---or consult an Attorney who is familiar with the process in that area).

Finally, you can purchase homes at "Tax Foreclosure Sales" or Judicial Tax Sales in selective states/cities. The main challenge is knowing the type of sale and the specific name of the Del. Tax Sale in that state/city, etc. (e.g., Tax Foreclosure, Tax Deed, Tax Title Sales, etc.).

Case & Point: Pennsylvania (67 Counties) conducts three types of Delinquent Tax Sales: Upset Sales (not free and clear), Judicial Sales (Free and Clear), and Private Tax Sales (free and clear repository sales).

Welcome To The World of Tax Sale Investing! Much Success As you Invest.

George with/a Smile :cool: :D

Hello Roger,

As noted, the state or county, etc. is always a good place to start. I would "suggest" that you gather as much info. as possible from there first, then sift or sort through it. Afterwards, generate your list of questions if they are not answered by the county.

In addition, you should also become very familiar with the Tax Sale Laws in the area where you want to Invest as they are different from state to state.

Here is one suggested book: Profit by Investing in Real Estate Tax Liens: Earn Safe, Secured, and fixed Returns Every Time by Larry B. Loftis, Esq.

I hope this help you, but do not hesitate to continue to ask questions from others who are also willing to help you as I am sure that many of us want you to succeed---so much, much Success to you As You Invest!


GDH, President/Founder

Kyle,

Thanks, I will contact you regarding the Portfolios.

Greetings Marko,

Here is a summary look:

Tax Lien/Certificates: Subject to Redemption Periods & Investor Earns Interest on Money Invested; Amount of Interest-Earned is determined by statutory guidelines (state-laws for Tax Sales).

Tax Deeds: Some Are Subject to a Redemption Period and Some are Not. Some Deeds Are Issued "Free & Clear" of all liens (e.g., State of California, Hawaii, Texas, Virginia, etc.)

Note: Remember, some are subject to a redemption period (e.g., Indiana, Georgia, etc.)

The state where you Invest will pretty much dictate whether or not you can earn interest on your $$ (which is ALMOST nationwide) or whether or not you can buy a property "Free & Clear" - in that state.

New York offers a number of sale-types as well. Please advise: which state is of particular interest to you?

Much Success As You Invest!

Hello Roberto Jones,

Are you looking to purchase Liens or are you interested in online sources, such as websites, that offer information regarding liens, deeds, certificates, etc...?

There are some online sources (private entities) that offer "liens" to buyers/Investors, and there are plenty of counties throughout the U.S. that are direct-sources for liens as well.

Which state(s) interest you the most?