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Posted over 12 years ago

Tax Deed Creativity

Buying tax deeds and foreclosures that are occupied properties is a lucrative venture but many a good deal turns to overwhelming burdon and cost when the occupants will not get out and then upon their departure vandalize the property.  Here is a few creative tips that have saved us many thousands of dollars.

 

 This Works For Us!

Go to the property and present a copy of the tax deed or certificate of title to the occupant and inform them that you are the new owner of the property. Offer to pay them three hundred dollars and to pack/transport their belongings to a storage facility where we will pay two months of rent. We typically give the occupants three days to prepare. Three hundred dollars is typically more than they will get for the appliances in the house, so they are unharmed. With the thought of cash in hand the occupants are also less inclined to do damage to the house.  But, if this doesn't work then you will have little choice other than removal by force through use of the Sheriff's office UNLESS a creative solution is found.  

 

 

Forcible Removing Occupants

If the occupants are removed by force expect: broken windows and doors, kitchen cabinets pulled from the walls, damaged drywall, no appliances, fixtures on the floor, and a copper pipe hanging from the exterior wall where an a/c unit existed a few days prior. If these things are not done at the time of being forcibly removed then expect it shortly thereafter. This will add great cost, time and aggravation to your quest.  Creative Options When occupants are prior owners they many times just became overwhelmed with mortgages, liens, encumbrances and life but want to stay in the home. Some of these people do indeed have jobs or pensions but just couldn't keep up and with their upside down property there was no way for them to borrow against it and forge ahead.  

 

 

This scenario screams out "Rent with an option to purchase." One owner recently elected to buy the property from us which was less than he owed previously and it equated to a great savings for him, as the property was now free of the mortgage, and a fabulous profit for us as no property improvement was needed.  It was just a simple matter of signing a one year lease with option to purchase.  And, the rent we charged was 1/2 of what he was previously paying on the mortgage.

 

Another Example

The man who occupied the home was a renter whom had lost his job as a roofer. We are always looking for people to do roofing and labor so we agreed to let him stay in the house for 2 months fin exchange for working on the house and another we owned nearby . He ended up staying in the house for the two months, worked on the house, found another job, and rented a house from us. A definite win for everyone.  

 

Conclusion: You can toss them out or find creative ways to save your dollars.  

 

Sometimes there is no happy creative ending as many occupants will be squatters that you will have to toss to the curb via the Sheriff's department. These will be the people that cost you money as they will not answer the door, park down the street, avoid all contact and cover the windows, forcing you to remove them. These unfortunately are the occupants who will do thousands in damage to the property. Fortunately we have had many great successes by creating options rather than threats. 

 

 

Some of these squatters have responded positively to "Hey I am here to give you three hundred dollars will someone come to the door!"  This atleast gets the talk started and one woman said she didn't want her stuff moved to storage but for $400 she would be out in 2 days.  We returned in 2 days her stuff was out, she had moved into a vacant house on the next block, we paid her the $400 and changed the locks.  I guarantee you that had we forcibly removed this woman and her boyfriend the place would have been destroyed but instead Easy and Done. 


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