All Forum Posts by: Gautam P.

How is everyone coping with the new law? In Mercer County, the certificates are due July 31st. Any insight on how strictly that will be enforced? Considering thousands of properties were built before 1978, I imagine the first year will be rocky. Also, there is a lot of vagueness in the interpretation of the law. One question I got from an investor is whether an unfinished basement should be tested and remediated. Testing itself costs $350+, and the follow-up testing costs another $300-$400. This is a classic NJ. 

Can you please provide some guidelines about what can wrong with REO from homesearch or auction.com I understand these are foreclosed property with all the junior liens and all judgement wiped out , am I safe to assume that ? Because these are owned by bank I assume they are uptodate with taxes and utility bills.

Most probably that property will be auctioned at sheriff sale. Someone can chime in and provide way to acquire it before it goes to auction.

 I was winner of an auction on auction.com, seller had not registered the property in county records so I couldn't get title insurance. I did not pay earnest money for several days, eventually they cancelled my bid without any penalty. I am curious to know if anyone got back earnest money

Sorry I originally posted in existing thread, but seems like I am supposed to open new one to not side-track original discussion.

So here is my newbie experience, won an auction, got attorney to review the contract. He flipped saying that I am waving all my rights. I said it is alright and I know what I am getting into as far as title is clean. The condition with this auction is that closing company will offer title insurance at closing time but they cannot guarantee it. So I asked my attorney to run title search and request title insurance. My title company put in condition that the deed has to be recorded on Wells Fargo name and not prior home owners name to guarantee title insurance. Called auction.com, they said they verifed Wells Fargo holds the deed before putting up an auction but the bank will not record it in the county. Because bank wants to do both recording when I close.

Can someone pl guide me how to get out of this log jam.
While all this was going on, auction.com cancelled my contract and relisted it. 

Sorry if I am supposed to open separate thread. Seems like auction.com discussions are happening here. So here is my newbie experience, won an auction, got attorney to review the contract. He flipped saying that I am waving all my rights. I said it is alright and I know what I am getting into as far as title is clean. The condition with this auction is that closing company will offer title insurance at closing time but they cannot guarantee it. So I asked my attorney to run title search and request title insurance. My title company put in condition that the deed has to be recorded on Wells Fargo name and not prior home owners name to guarantee title insurance. Called auction.com, they said they verifed Wells Fargo holds the deed before putting up an auction but the bank will not record it in the county. Because bank wants to do both recording when I close.
Can someone pl guide me how to get out of this log jam. 
While all this was going on, auction.com cancelled my contract.

@Mike Kalob 

 thats exactly my confusion as I noted in

http://www.biggerpockets.com/forums/70/topics/158212-tax-lien-sale-due-diligence

Can someone shed light on this

Thanks @Jerry K. 

 I have listened to the podcast but I will definitely revise it. 

I participated in couple of auctions. Most of them got sold at premium 300% - 400% of the lien e.g. highest bidder got around $200k in the lien by paying $700k in premium. This has to be big institution and not private investor.  Only 3% (7 out of 220) of the liens (over $800) had liens from prior year.  

Now I understand why anyone pays premium theoretically:
- Chance to be lien holder for next tax cycle.  Considering most of the liens get paid off within an year, why anyone wants to block such massive investment ?

- Chance to foreclose after 2 years (in NJ).  If there is equity in the house, wouldn't it make sense for homeowner to sell the house and pay off the lien ? If there is mortgage on the house, chances are bank will pay off the lien.

I am definitely missing something here. Can someone help me understand rationale behind paying hefty premiums at the auction ?

Thank you  @Jerry K. 

 Yes I looked at the practice site and that is helpful but I am more looking to know how the auctions are conducted. Seems like these are best and last offer auction as you mentioned in your other reply. 
Thanks again.