All Forum Posts by: Jim Watkins

Assuming this was not a "Tax Foreclosure" and was a "Mortgage Foreclosure" ...
It takes the IRS 120 days to determine if they will redeem (those of us in these parts refer to it as, "seize"). If they want to redeem, it has to happen within those 120 days.

During that time is a gamble for the investors who own them. Any upgrades/improvements that are made will not be reimbursed by the IRS unless they are deemed "necessary."
Investors I know, will go ahead with the repairs while gambling that they will not redeem. Either way, you are not able to sell it during the 120 days unless they release it early.

Your odds?
This is my OPINION ONLY...
I would say 1 in 100, that they will redeem.

Lori Ann Fox
(214) 870-3304 (cell)

She is a business formation/corporate attorney.

She is good at what she does and knows how to protect her clients and their interests.

Tell her I referred you and she will take care of you.

-jim

Guru_wanna_be...

So FEW investors even think of what you said. It is really frustrating when I talk with an owner and they come back at me by waving the letter that makes the promises (and yes, I usually ask them why they called me and that backs them off).

The ones that usually "gaurantee" a homeowner, are also the ones that claim they can, "Save Your Credit!"
There is no way anyone can save their credit at that point. The best hope would be to lessen the long term credit damage by buying the house and that would not only prevent a foreclosure being reported on their credit, but it would also show it as a "paid" mortgage.

Either way..... Kudos for having the good sense to not make any false claims!

I agree with you 100%.
In this case, we are talking about the final stage of an eviction. Letters/notices have already been sent at that point and the Constable personally serves the previous owner with the 24-hour notice to vacate.

What happens on the day the writ is served (removing property from the house), the Constable will order the movers/labor to place the contents of the house at the curb and work back towards the house.
If the person is there at that time, the constable will tell them to stay out of the house and out of the way (most people stand by their things).
Its when the previous owner is not home... that everything will be public property and people walk off with it.

The purpose to all of this (thread question) is what happens or can happen once the eviction is carried out and completed by the Constable.

Your statement/question is a bit confusing.
When you say, "at the eviction," ... Do you mean when the Writ of Possession is served by the Constable?

Once the writ has been served, the Constable will tell you when you are able to move things from the curb. But pretty much, once the writ has been served and the constable leaves.. it is considered public property.
Oddly enough, I doubt you will have to move much of it because people come out of nowhere to pick thru it and take what they want.

Whatever you do... don't put things you like back in the house. While I guess you are able to do that legally.... its really a slimy thing to do.

The last I had heard anything about the HOA laws, was when they were changed in 2003.
I would guess that either the laws have been adjusted during the past 5 years or maybe there is a homestead exception or something.

Interesting if what you found is actually correct. Its worth my calling a real estate lawyer to find out specifics.

Thanks

Technically (and legally) once a property is sold at the auction, all of the contents become the property of the new owner (IF the house is abandoned).

Technically

I was asked this question in a class so I asked Ted Duffield, who is/was the JP in Temple, Texas.
He told me that the new owner (bank or investor) gains ownership of the contents after the sale. BUT... he said if the previous owner shows up & demands their things back and takes the new owners to court to get their belongings.... He said all bets are off. It would depend on what the two sides had to say about it.

To protect themselves (new owners), he said, if there is any personal belongings left behind, that the new owner should move it all into the garage, one of the rooms in the house or even a storage locker.
Then he suggested posting a notice on the front door of the house stating that the contents left behind is being held until a certain date and the previous owners can contact them to arrange to pick it up. He told me that two weeks would be a reasonable amount of time and placing an ad in the local paper or Craigslist, would be good as well.

If a new owner showed that they did that... He said he would rule in favor of the new owner because they did what they could, even though technically, they didn't have to.

I have not been able to successfully deal with Countrywide. I have even taken the time to personally go to their massive building in Plano, Texas but to date, have never found them to be easy to bargain with.

BUT... I have been hearing from other local investors that Countrywide has recently agreed to several short sales with them. That is incredible to hear that.
I guess even the mighty Countrywide is feeling the pain. I never thought I would live long enough to see Countrywide make a deal.

Everyone who has commented thus far are all correct. You have NOTHING to lose by making an offer.
But..... BE SURE you can make good on any offer you make. I say this because the lenders that I have talked with "off the record" have all told me they are leery of investors because a lot of them have not been able to follow through and buy the house after their offer was accepted.
They have also told me that once an investor closes on a house after an offer was accepted, they tend to cut right to the chase with them in the future as they know they will do as they say.

Mac, hopefully at this point, you understand that no matter what steps the IRS must go through with a house in foreclosure, you know that you need to do your homework before trying to buy one.
As I said before, I have not personally heard of anyone that had the IRS seize/redeem a property after they bought it at an auction but that doesn't mean it can't happen.

Are you wanting to know the actual process for an HOA to foreclose or are you wanting to know how to make money with one?

The process is the same as a lender foreclosing because an owner has not paid.
It is possible to make money with them but the chances are not good (in Texas).
I say this because investors took advantage of some large loopholes in the system a few years back and the state changed the rules (as they should have).
If a HOA forecloses on someone, it is because they have not paid their HOA dues. It is entirely possible that an owner can be current on their mortgage and still lose the house to an HOA.
BUT... the new laws in Texas give the owner the right to redeem within 12 months of the sale... with ZERO interest. I am not sure if they can be evicted during that time or not but, after the laws changed, every investor I had known to pursue them, all dropped out of the HOA game.

Mac66,

I am in Texas as well and here is how it works with IRS Tax Liens (I assume this is the case for all 50 states but check to make sure)...

The Trustee must notify the IRS via certified mail, before they file the foreclosure.
If you are the winning bidder for a property with an IRS lien against it, you need to ask the Trustee if they notified the IRS. If they have, ask them to show you the proof of the certified mail.
If they did not notify the IRS... Do NOT buy the property! Tell the Trustee you can't pay for the property because they were not properly notified. The Trustee may give you a cold stare but they will merely re-auction the property with no harm done.

Once a house is sold at the auction, the IRS has 120 days from the day you bought it, to sieze the property.
If they actually do that, they will pay you the amount you paid for the house plus 4% (some claim it is 6%).
BUT.... They will not reimburse for any repairs/upgrades that they deem "not needed."
So, if the roof has a big hole in it, they will reimburse for that. If you paint the house, they will not reimburse for that.

I have not personally heard of a single case locally where the IRS siezed a house. I don't suggest anyone play "chicken" with the IRS.
Most investors I know that have bought with an IRS lien against it, have gone ahead with the rehab and sold after the 120 days had passed (hoping they wouldn't sieze it).

FYI... After 120 days, the IRS removes the lien from the property and I am told that they put the lien onto the previous owner themselves.