Same property up for tax sale two years in a row....??

[jade]

Hi!

From what I understand, if there are no bids for a property, it goes back to the municipality which then puts it up for sale in the market. I am in B.C, and have noticed that the same property on the 2006 tax sale was also on the 2005 tax sale. Can someone enlighten me?

This property is assessed at about half a million, why wouldn't the owner just sell it, pay the arrears, and buy a cheaper property with the rest of the proceeds from the sale, rather than losing it all?

Thanks

[Frank]

This property is assessed at about half a million, why wouldn't the owner just sell it, pay the arrears, and buy a cheaper property with the rest of the proceeds from the sale, rather than losing it all?

That same question is present with all tax sale properties.  However;

Is the property really worth half a million?  Don't rely totally on assessment to determine its correct value.  What is it's condition?  Is it contaminated?  Has half of the property disappeared into the ocean?  Are there new native land claims against it? Does the owner owe more against it in mortgages and other liens thant what it is really worth?  Is it the subject of a joint ownership (usually read family) dispute?   Is the owner still alive?

You'll never know what the situation is unless you dig deeper into its history.   

[jade]

But what of my first question, Frank? Why does it get put back on the block a second time?

I went to the property, and it is a tear down candidate. The assessed value would be lot value, and knowing the area, it is in the ball park. It is one of a very few left on that street that hasn't been razed and low rise condos being put in its place.

I'll be going to city hall to dig deeper, on Monday. But I wanna know why a property gets put back on the block a second time.   

[Frank]

I answered your second question only, cause I thought your first one was irrelevant.  If you really want to know call the town and ask. There are numerous reasons as to why that would happen, but they are all of no consequence.  Sometimes sales are cancelled for technical reasons such as errors in advertising or notice to interested parties.  Sometimes the successful bidders forfeit their deposits. Sometimes owners are given another chance to pay, an extension if you will for various reasons. 

Who know, but really who cares.

[jade]

Thanks Frank. I was wondering because all the blurbs on tax sales that I have read suggest that a property gets put on the block once, then get taken over by the municipality to be sold on the open market.

I will do my DD, and will be tracking this property till the next tax sale in the fall. Seems like a diamond in the rough.

Again, thanks so much for the reply. I very much appreciate yours and Rob's very knowledgeable posts here.