Gump Posted November 6, 2012 Report Share Posted November 6, 2012 Who has done it? What catches are there? Quote Link to comment Share on other sites More sharing options...
Scruit Posted November 6, 2012 Report Share Posted November 6, 2012 Sabotage by prior owner. Get a very good inspection. Quote Link to comment Share on other sites More sharing options...
Gump Posted November 6, 2012 Author Report Share Posted November 6, 2012 That is a problem because normally u can't inspect before hand and you don't get keys. Quote Link to comment Share on other sites More sharing options...
rawlins87 Posted November 7, 2012 Report Share Posted November 7, 2012 Buy expecting the worse? Quote Link to comment Share on other sites More sharing options...
Scruit Posted November 7, 2012 Report Share Posted November 7, 2012 When you say "can't inspect" do you mean you can't even look around inside? Or you just can't bring in a proper inspector? Quote Link to comment Share on other sites More sharing options...
flounder Posted November 7, 2012 Report Share Posted November 7, 2012 This is the way it works because I was in process of doing it. 1. You cant inspect the house at all and if you try and sneak in, you run the risk of treaspassing charges.2. You need to bring somewhere between 5-15% of the sale value in cash to the auction which is typically at the courthouse on some set day of the month. Things to expect.Expect the worseExpect a contractor to out bid you.and most importantly, expect the Bank who is the primary lean holder to outbid 98% of everyone since its just funny money to them and they already own the house. They can buy it back for more than its worth and turn around and sell it for less because like I said, its funny money to them and they can right it off as a loss. Quote Link to comment Share on other sites More sharing options...
Gump Posted November 7, 2012 Author Report Share Posted November 7, 2012 Why would a bank be interested in a tax lien sale? I thought that was for foreclosure sales? Quote Link to comment Share on other sites More sharing options...
jester3681 Posted November 7, 2012 Report Share Posted November 7, 2012 Why would a bank be interested in a tax lien sale? I thought that was for foreclosure sales?All a tax lien sale does is give you title to the house. If there are still any encumbrances on it (mortgage), they go with the sale. You get the right to own the tax debt. You hedge your bets that you are buying a house worth more than the mortgage. The bank is doing the same thing, except they already own the debt. Quote Link to comment Share on other sites More sharing options...
Gump Posted November 7, 2012 Author Report Share Posted November 7, 2012 Thanks. What if its only Property with no mortgage? Quote Link to comment Share on other sites More sharing options...
Scruit Posted November 7, 2012 Report Share Posted November 7, 2012 Thanks. What if its only Property with no mortgage?Expect professional house-flippers to do a better job of accurately estimating the value of the house and bidding up to that. - If THEY outbid YOU it's probably because the flipper knows something you don't know.- If YOU outbid THEM it's probably because the flipper knows something you don't know.It all comes down to experience - on how much gaining experience will cost you. You can figure out if a property has a mortgage (though not sure how you could find out the balance of said mortgage) or other liens.It would seem to make sense to me that mortgage/irs/property tax liens would tend to hang out together like women going to the bathroom... Once money troubles really set in nobody gets paid.I would also worry about the displaced former owner being unhappy with the new living arrangements... Quote Link to comment Share on other sites More sharing options...
conn-e-rot Posted November 7, 2012 Report Share Posted November 7, 2012 From what I was told when I was considering bidding on one was if there is a substantial mortgage on the property don't even waste your time bidding because the bank is not going to let it go. Now if there is $10k owed on a $100k house then you'd be ok bidding but it'd be a blood bath because contractors will be bidding Quote Link to comment Share on other sites More sharing options...
Gump Posted November 7, 2012 Author Report Share Posted November 7, 2012 (edited) Starting to piece this together. The pros arnt there because they're getting ripped off. I know of a couple stories of guys getting great deals when the foreclosure doesn't get bid on for 2/3rds and then it gets put up for sale again later. But that's not a tax lien sale. Edited November 7, 2012 by Gump Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.