Messages

1

Questions and Answers / Re: Do mortgages carry over on tax deed sale properties

« on: June 01, 2007, 01:41:43 PM »

In regards to this, are you sure this is correct? I got in contact with a title search company in the US and this was their response:


A tax deed purchase does not satisfy any open mortgages etc. If the current owner does not pay off the taxes within the allotted timeframe, the ownership gets transferred to the tax deed purchaser. You will inherit any open mortgages etc attached to the property. Subsequently, you should have a preliminary search to determine any open items to reduce your liability.

Who am I supposed to believe now?

For some reason, I wouldn't think that "the banks just have to take a loss". They're usually not into just giving away money.

Anyway, this is something I would really like to clarify.

If anyone has any legal eagle friends out there, could someone ask one of them?

I think this will really benefit everyone if we can clarify this once and for all.

I don't think any of us want to buy a "cheap" property only to owe a sh%tload of money on it already, especially if its attached to the title itself and not the owners name.

The reason I wanted to know about this in the first place is that usually mortgages are secured by the title of the property itself with personal guarantees by the owners, therefore the owner of the property is usually the bank, not the owner themselves (until they've paid out the mortgage).

It's that way in Australia at any rate. The bank holds the title to the property until the mortgage is repaid.

Regards,


Christian

Does the bank just have to take a loss?

Yup.

I believe from your question that you/or we are confusing apples with oranges.  You are referring to Australia and the U.S..  Please realize that each of these jurisdictions have different laws - and in some cases even some of the provinces in Canada are unique.  We are referring to tax sale properties in Ontario, Canada only.  Now if you were to purchase a property through a Sherriff's auction in Ontario, Canada then that is similar to what you are referring to.  You might under that sale buy a property for a buck, but owe more than it is worth in mortgages since nothing disappears under that situation of sale. 

However, a true property tax sale in Ontario, Canada sees all but Crown liens disappear.  If you were to buy a property in Australia and found out afterward that was not applicabel, you wouldn't have a hope telling a judge that that's the way they do it in Ontario.

Sometimes we forget that we are on the world-wide-web, and we talk about these rules as though they are applicable universally - my apologies. 

Frank, from ONTARIO 

Hi Frank,

Thanks for the clarification.

I realise all the laws are different. I am currently searching the laws relating to tax sales in the USA and as you most correctly stated, the laws are different.

Even though most of the states and counties liens and tax deed sales provide gaining ownership of the property, the mortgages remain open and the purchaser of the tax deed or lien will "inherit" the mortgage if it hasn't be paid out.

That is just a bit of information about what I've researched so far, just in case anyone is ever interested in investing in non-Ontario tax deeds.

(Should probably move this thread to the USA section).

Anyway, thanks for the clarification.


Regards,


Christian

P.S.: Do you use MSN at all? I would like to have a chat to you sometime if you're not too busy.

2

Questions and Answers / Re: Mortgage liabilities

« on: June 01, 2007, 12:21:31 PM »

Hi Rob,

I was wondering if you could tell me if this is also the case within the USA. I've just received this message from a title search company and was wondering if you could tell me if this is correct?

It seems that from what they're saying, mortgages DO survive the tax deed process.

Please find their response below.

I cannot say that because you are now referring to tax deed properties specifically. A tax deed purchase does not satisfy any open mortgages etc. If the current owner does not pay off the taxes within the allotted timeframe, the ownership gets transferred to the tax deed purchaser. You will inherit any open mortgages etc attached to the property. Subsequently, you should have a preliminary search to determine any open items to reduce your liability.

If you could clarify for me, it would be greatly appreciated.

Regards,


Christian

A bank or private mortgage would be removed from the home or property.   You might be wondering how the bank gets the money they are owed.  The answer is they deal with it all before a property would go up for auction.  Stakeholders( owners, lien holders, etc) would receive three notices and at that point the bank has a chance to act.

3

Questions and Answers / Re: Do mortgages carry over on tax deed sale properties

« on: June 01, 2007, 12:04:07 PM »

In regards to this, are you sure this is correct? I got in contact with a title search company in the US and this was their response:


A tax deed purchase does not satisfy any open mortgages etc. If the current owner does not pay off the taxes within the allotted timeframe, the ownership gets transferred to the tax deed purchaser. You will inherit any open mortgages etc attached to the property. Subsequently, you should have a preliminary search to determine any open items to reduce your liability.

Who am I supposed to believe now?

For some reason, I wouldn't think that "the banks just have to take a loss". They're usually not into just giving away money.

Anyway, this is something I would really like to clarify.

If anyone has any legal eagle friends out there, could someone ask one of them?

I think this will really benefit everyone if we can clarify this once and for all.

I don't think any of us want to buy a "cheap" property only to owe a sh%tload of money on it already, especially if its attached to the title itself and not the owners name.

The reason I wanted to know about this in the first place is that usually mortgages are secured by the title of the property itself with personal guarantees by the owners, therefore the owner of the property is usually the bank, not the owner themselves (until they've paid out the mortgage).

It's that way in Australia at any rate. The bank holds the title to the property until the mortgage is repaid.

Regards,


Christian

Does the bank just have to take a loss?

Yup.

4

USA General / Re: Regulations pertaining to resale of properties

« on: May 31, 2007, 06:23:18 AM »

Hi, I was talking to a friend about properties in Alabama the other day and after speaking to a friend, he mentioned that there is some clause in reselling properties there and that they have to be "fixed up" before the property can be sold.

Something along the lines of you have 60 days to fix the property up after taking ownership?

Does anyone know or have they heard about this type of situation, either in the USA or in Canada?

If someone knows, it would help me out a lot.

P.S.: As far as I knew, if you have the tax deed/title to the property, you can pretty much do whatever you like with it as long as its within the guidelines of its zoning.

5

Questions and Answers / Re: Crown Liens

« on: May 31, 2007, 06:14:58 AM »

No an expert is as described below:

x = unknown quantity
spurt = drip under pressure

 

Regards,

Christian

An expert is a guy who is 100 miles from home, and he borrows your watch to tell you what time it is.  That's not me.

6

Questions and Answers / Re: Do mortgages carry over on tax deed sale properties

« on: May 31, 2007, 06:10:27 AM »

Thanks, I appreciate the info.

Is this also the same case within the USA, or does it only apply to Canada?

Forgive my stupidity but I would prefer to be informed before purchasing something that may have a bloody huge debt attached to it.

Would prefer to err to the side of caution than wind up with someone elses debt.

I'm from Australia so am VERY unfamilar with US and Canadian laws pertaining to property sales and taxes.

Regards,


Christian

You obviously haven't read any of the posted material on this site.  Please do so before you ask the next question as the answer has been provided at least 100 times.

Only crown liens survive a tax sale.  Any other mortgages or liens disappear.  Other encumberances on the property such as encroachments, rights of trespass, etc.. will also remain.

7

Questions and Answers / Do mortgages carry over on tax deed sale properties

« on: May 30, 2007, 05:19:30 AM »

Hi I have a question about mortgages on tax sale properties.

I would like to know if when a tax sale property is purchased does it carry over the mortgage a previous owner may have had on the property or if the previous owner is still responsible for this debt with the title being clear?

The reason I'm asking this is because usually the mortgage is secured by the title, not the previous owner themselves.

If anyone knows or has a possible link to a site where there is some further information it would be greatly appreciated.

Thanks in advance,


Christian

8

USA General / Tax Deed Sales in the USA

« on: May 26, 2007, 11:50:47 PM »

Hi all,

I thought I'd post a list of some handy sites that people might find useful in their research of US property tax deed sales.

Hope they help.

Christian


National Association of Counties Organization
www.naco.org
A list of all the counties in the USA including contact details, links to websites (if they have them) and also demographics of local populations, etc.


The Public Records Online Directory
publicrecords.netronline.com
Designed to allow easy access for researching of Official Tax Assessor and Recorders Offices.


The Property Assessment Directory
homepage.mac.com/researchventures/
Links to virtually every property assessment database within the USA, some in Canada, New Zealand, England, Ireland and Scotland.


EMaps Plus
www.emapsplus.com
Online Land and Parcel Search facilities for various States, particularly Alabama, Florida, Georgia, Illinois and Tennessee. Allows aerial photographs, dimensions of properties, title holder information, outstanding taxes and also photographs of properties (albeit pretty scarce).


Delinquent Tax Sales
www.delinquenttaxsales.com
A Delinquent Tax Sales and Tax Lien Certificate website that allows investors to view listings and results of auctions US-wide. Additional benefits of this website are access to Government, Bank and Mortgage Foreclosures.


Property Sites
www.propertysites.com
This website is included here as a reference site to help you ascertain the pricing of housing around the areas in which you are purchasing. Sometimes it can really help to research the prices of real estate around the area in which you will be targeting.


Zillow
www.zillow.com
Zillow.com is designed to assist you in estimating the property value of the area in which you are looking to buy. Sometimes, you will even find the properties you are looking to purchase in there with valuations, so again, Zillow can assist you greatly in your targeting of property purchasing. You can also view aerial shots by street numbers and suburbs if so desired.


Realty Central
www.realtycentral.com
Once you have your properties, the titles are cleared of any encumbrances and they?re ready to be placed on the market for flip or quick resale, this is definitely a great resource if you are searching for a place to sell your property. Often auctions are a great way of selling property. This is a list of auctioneers, both on and off-line.


Black Book Online
www.blackbookonline.info
This page of Black Book Online will provide you with access to State Public Records available for all States via the Internet, including taxation information, parcel information, delinquent property lists, over the counter sales, sheriffs sales, tax deed and tax lien certificate auctions.


Bid 4 Assets
www.bid4assets.com
Bid 4 Assets is one of the largest sellers of tax-defaulted properties in the USA and manages and holds tax deed and tax lien certificate sales on behalf of many of the counties and states around the USA. A very good resource. Also provides an email service if you wish to know about upcoming tax sale auctions.

9

USA General / Re: Tax Deed Listings

« on: May 26, 2007, 11:45:53 PM »

Hi, the Bid4Assets website seems to host most of California's listings as far as I can ascertain.

Regards,


Christian

10

General / New to Tax Deed Sales

« on: May 26, 2007, 11:44:10 PM »

Hi my name is Christian. I'm from Melbourne in Australia.

I've been doing a lot of research on Tax Deed Sales in the US and Canada and would like to chat with a few people if possible about tax deed sales etc.

Since I'm not in Canada or the States it makes it difficult to find people who do this type of investing.

If you would be available to have a chat about how it all works, please feel free to add me to your MSN.

My MSN address is [email protected].

I look forward to hearing from you.

Warm Regards,


Christian Bannard