Ontario Tax Sale Property Forum

Sheriff Sales / Foreclosures => General Discussion => Topic started by: PG on June 11, 2013, 02:38:33 PM

Title: Financing Tax Sale Purchases
Post by: PG on June 11, 2013, 02:38:33 PM

Has anyone had any success in obtaining financing for a tax sale property after they have won the tax sale but before they have received a registered tax deed to the property?

My personal experience is that if you are unable to pay for your property in cash within 14 days of the tax sale, either by way of cash, a personal line of credit or a secured line of credit against another house you may own, the tax sale game is too rich for you and you will be unable to purchase your property and most likely will lose your deposit.

I wonder if others have had success with unconventional lenders (anyone other than the big banks) who have offered interim financing on tax sale properties from the date you win the sale to the date you receive registered title, at which time you could get a conventional mortgage.

I appreciate any insight anyone may be able to offer.

Title: Re: Financing Tax Sale Purchases
Post by: Pfm1011 on June 12, 2013, 01:46:44 PM

If you have to finance..you should not be playing this game. There can be substantial losses in taxsales or extreme long time to dispose of land.   You should only play with money you can afford to walk away from.

Title: Re: Financing Tax Sale Purchases
Post by: PG on June 12, 2013, 06:54:09 PM

I suspected that this woud be the case, but I certainly appreciate the confirmation.
Best,
Peter

Title: Re: Financing Tax Sale Purchases
Post by: g2020 on June 12, 2013, 08:44:28 PM

I hope everyone will join me in sending some well deserved karma to pfm1011 since it has been  long time since I have seen one of his postings. He tells it as it is! I am a big fan. Welcome back pfm1011.

Title: Re: Financing Tax Sale Purchases
Post by: ErnestBidder on June 13, 2013, 12:51:22 AM

 Getting into the investment game is not always easy, but, just like buying your first home, sooner is better. You may have close family or friends who might be interested in going partners: it's not easy, and can be fraught with strife & woe, but can be done if everyone involved is careful, and you work as a genuine team.

Title: Re: Financing Tax Sale Purchases
Post by: Frank on June 13, 2013, 01:00:33 PM

Quote from: ErnestBidder on June 13, 2013, 12:51:22 AM

Getting into the investment game is not always easy, but, just like buying your first home, sooner is better. You may have close family or friends who might be interested in going partners: it's not easy, and can be fraught with strife & woe, but can be done if everyone involved is careful, and you work as a genuine team.

Been there, done that....partnerships don't work, plain and simple. 

PFM is right, if you can't pay then don't play.  And my favorite....go big, or go home.  8)

Title: Re: Financing Tax Sale Purchases
Post by: ChrisCentral on June 19, 2013, 04:29:57 PM

Cash is king ...

Welcome back PFM