Tax Deed Sales - Miami, Florida

6 Replies

Hi there. I'm looking to buy a tax deed property from an auction in Miami. Do any of you have experience with this? If so would love to understand how to go about doing the diligence prior to auction day to find out how much is owed on liens that won't be cleared once sold. I would also greatly appreciate any intros to tax deed lawyers or title companies that can help guide me throughout this process. 

Thanks! 

You will need to understand how to analyze titles and liens (may even need to negotiate in front of a enforcement board depending on the total lien amount).  

Tax-deeds FYI have a title report you can view for free - Its done by the National Title Abstract Company (you'll find it on the listings).

Your biggest liens will usually be municipality liens (code enforcement, housing standards ,various local agencies,etc..).


To learn how to examine titles you'll probably have to learn it on your own - I can give you the general steps and checklist that I've built up from the past year of examining titles (I'm still learning since no one wants to teach me without working for them full-time lol).

https://www.alta.org/media/pdf/CH01.pdf (ALTA has a great sample .PDF to grounded yourself in title terminology)



https://www.biggerpockets.com/forums/642/topics/57... (relevant thread)

 
I purchased some land in homestead, took about 1-2 weeks for my tax-deed title to arrive with no difficulties encountered.

Hi @Joshua Kleiman , as someone who has been investing in tax liens and deeds for a little while now, just to give you a heads up, online auctions-specifically FL are INCREDIBLY competitive- ESPECIALLY Miami area.  I think the days of picking up Tax Deed properties for 20, 30 cents on the dollar is over.  My advice would just be prepared to see outrageous bids that make no sense.  

Now, having said that, since we are talking about tax deeds, they can, and most times will be distressed properties, so due diligence is absolutely vital- this includes GIS search to make sure you see the actual parcel and everything included, driving by if you're local or getting a RE agent to take pictures and while doing so ask them about that local market. You can conduct proper lien and encumbrance searches via netronline. Beware of HOA and municipal liens- these will survive the auction but overage should cover them. Have a great team in place and be prepared for ALL exit strategies. I hope this helps.

Thank you guys!  

@Elvis Vasquez - I've looked at the title provided by the National Title Abstract Company but am still unclear if these liens will remain after purchase of the tax deed (e.g., mortgages) and still don't know how much money is owed for some of the city liens(e.g., $100 v. $30K).. When you purchased the land in homestead how did you find out how much was owed in other liens? 

@Doug Phillips   -  Thanks for the helpful adivce! I've looked at the specific property and it seems to be in good condition. Do you have any more info on how to use netronline or other sources to find the actual amount owed on liens? 

Originally posted by @Joshua Kleiman :

Thank you guys!  

@Elvis Vasquez - I've looked at the title provided by the National Title Abstract Company but am still unclear if these liens will remain after purchase of the tax deed (e.g., mortgages) and still don't know how much money is owed for some of the city liens(e.g., $100 v. $30K).. When you purchased the land in homestead how did you find out how much was owed in other liens? 

@Doug Phillips   -  Thanks for the helpful adivce! I've looked at the specific property and it seems to be in good condition. Do you have any more info on how to use netronline or other sources to find the actual amount owed on liens? 

 
The title search will show most liens (except Federal IRS Liens, they don't always bring it up - you have to contact the IRS and fax in your property info),  I purchased land that had no liens and a simple title chain (which minimizes the chance of a previous owner trying to sue in court).

In Miami there is no guaranteed lien settlement... in Broward i believe its around 10-15% of the total lien amount but in Miami its never a guarantee - say for instance you purchased a property with 50k+ in liens - you'd have to present yourself in front of the Miami code enforcement board and make your case (if its a smaller amount you can usually get by with just meeting an inspector).

I've heard of people walking away with 0-$3000 max in lien settlements (both personal friends and BP members) but I've never done it myself.

  

@Joshua Kleiman  netronline should direct you to the county assessor website where, if you have the applicable info (parcel ID and/or property owner name) you can conduct the lien searches.  I use them fairly often. 

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