All
Members
Companies
Blog
Forums
Podcast
Webinars
    User Log in  /  Sign up
  • Forums
    Newest Posts Trending Discussions Followed Forums Real Estate News & Current Events General Landlording & Rental Properties Buying & Selling Real Estate Deal Analysis See All
  • Education

    Read

    BiggerPockets Blog BPInsights: Expert Analysis Guides Glossary Reviews Member Blogs

    Watch

    Webinars Video Library Financial Independence Blueprint Intro to Real Estate: Rentals

    Listen

    BiggerPockets Real Estate Podcast BiggerPockets Money Podcast BiggerPockets Business Podcast Real Estate Rookie Podcast Daily Podcast (Audio Blog)

    Topics

    Business Operations Finance Finding Deals Property Management Property Types Strategy
  • Network

    Recommended Vendors

    Real Estate Agents Mortgage Lenders Hard Money Lenders Insurance Contractors Investment Companies Build Your Team

    Search

    Members Events Jobs
  • Tools

    Calculators

    Rental Property Fix and Flip BRRRR Rehab Estimator
    Wholesaling Mortgage Payment 70% Rule Airbnb

    Services

    BPInsights: Property Insights Tenant Screening Property Management Lease Agreement Packages

    New Feature

    BPInsights (beta)

    Quickly analyze a property address or ZIP Code to compare your rent in your neighborhood.

    Analyze a property
  • Find Deals
    Real Estate Listings Find Foreclosures External Link Ads, Jobs, and Other
  • Bookstore

    Real Estate Books

    Profit Like The Pros Bidding to Buy See all books

    Featured Book

    BiggerPockets Wealth Magazine book cover
    BiggerPockets Wealth Magazine

    Written by financial journalists and data scientists, get 60+ pages of newsworthy content, expert-driven advice, and data-backed research written in a clear way to help you navigate your tough investment decisions in an ever-changing financial climate! Subscribe today and get the Oct/Nov issue delivered to your door!

    Get the Magazine
  • Pricing
Log In Sign up
User
Quick search links
Podcast Hard Money Lenders Books New York
ForumsArrowBuying & Selling Real Estate DiscussionArrowPurchasing a house before it is up for a Tax auction
  • Newest Posts
    • Newest Posts
    • Unanswered Discussions
  • Trending
    • Top Discussions
    • Trending Discussions
  • Browse Forums
Search Nova
Create post

Purchasing a house before it is up for a Tax auction

7 Replies

  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn
Rotate Log in or sign up to reply
user profile avatar
  • Posts 41
  • Votes 5

Mal K.
Rental Property Investor from Lancaster, NY

posted over 3 years ago

I’m looking at the house that has been foreclosed by the city due to delinquent unpaid taxes. The owner inherited the house from his parents and stopped paying taxes three years ago. Tax auction is coming up and I’m interested biding on the house. I had my real estate attorney do a title searching and check if there are any judgments or lien against the owner of the house. The owner (I’m in contact with) would consider selling the house to me directly. When I asked at the city treasury dept if I can pay off delinquent taxes (3 weeks before auction date) I was told it is too late and the house will be auctioned  off. 1. Is there anything that I can do to purchase the house before it is auctioned off? The owner would sell it directly to me.                                       2. The seller has judgements against him, but they were awarded before he inherited the house. My attorney said there are no liens on the house. If I purchase the house can these agencies come after me a new owner since there were judgments filled against the prior owner. As always thank you for your advice. Mal

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Team, Traditional Financing, and Single Family
  • Posts 34K
  • Votes 47K

Jay Hinrichs
Real Estate Broker from Lake Oswego OR Summerlin, NV

replied over 3 years ago

I would check with your attorney I find it hard to believe you cannot pay the tax's up to the day before the actual sale. in every state I work that is the case.. its worth a call .. owners of real property are always last minute Louis paying tax's

when you follow these sales you will get all excited only to have the one you want to bid on redeemed day before the sale.

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Rentals, Managing Tenants, and Tenants
  • Posts 9.2K
  • Votes 6.4K

John Thedford
Real Estate Broker from Naples, FL

replied over 3 years ago

If you have a contract to purchase would unpaid taxes be paid at closing? Worth asking your attorney. 

Rotate Log in or sign up to reply
user profile avatar
  • Posts 41
  • Votes 5

Mal K.
Rental Property Investor from Lancaster, NY

replied over 3 years ago

Great. The property is located in New York State. City said the owner had until July 4th to pay taxes and the auction in the beginning of November.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 2.5K
  • Votes 2.4K

Tom Gimer
from Washington, DC

replied over 3 years ago

The timing of judgments is not the issue. Confirm with your attorney whether or not judgments attached as a matter of law automatically when title vested in your seller.

That’s how it works in all the states around here.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 4.3K
  • Votes 1.7K

Sam Shueh
Real Estate Agent from Cupertino, California

replied over 3 years ago

If there are no other liens or judgement from lenders, it is reasonable to state you two can go to title and close a deal.  If the title & escrow is wrong and home gets sold at auction, their insurance can regroup.

Good luck,

Rotate Log in or sign up to reply
user profile avatar
  • Posts 3.2K
  • Votes 2.0K

Christopher Phillips
Real Estate Agent from Garden City, New York

replied over 3 years ago

@Mal K.

NY State is a judicial state. The house has already been foreclosed on. Once the judgement is issued title is transferred to the municipality for sale. For tax foreclosures, the owner has a very small window to redeem the property after the judgement is issued (30 days after the foreclosure notice is mailed). Since the owner blew passed that date already, you can no longer buy it from the owner directly. Nor can you buy it from the municipality before the auction, they want an arms length transaction at auction to get the maximum sales price for the property.

The only way the owner could do something at this point is petition the court to reopen the judgement case. Considering the owner hasn't paid taxes in several years, he probably won't bother with a legal battle.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 2.5K
  • Votes 2.4K

Tom Gimer
from Washington, DC

replied over 3 years ago
Originally posted by @Christopher Phillips :

@Mal K.

NY State is a judicial state. The house has already been foreclosed on. Once the judgement is issued title is transferred to the municipality for sale. For tax foreclosures, the owner has a very small window to redeem the property after the judgement is issued (30 days after the foreclosure notice is mailed). Since the owner blew passed that date already, you can no longer buy it from the owner directly. Nor can you buy it from the municipality before the auction, they want an arms length transaction at auction to get the maximum sales price for the property.

The only way the owner could do something at this point is petition the court to reopen the judgement case. Considering the owner hasn't paid taxes in several years, he probably won't bother with a legal battle.

I missed that little tidbit (foreclosed) in the description.

Interesting that our poster's attorney is not thinking along those lines, or it would seem.

Anyway, if that is the case, those junior judgment liens would presumably have been wiped out by the foreclosure. And there would be no sense dealing with the "owner" who thinks he's the owner but no longer is. Sounds like it's time to focus on the tax sale. 

Rotate Log in or sign up to reply
  • 1
Related Resources Buying & Selling Real Estate Discussion
Start Your House Hunt Right by Asking These Questions First
Is Doorvest a Good Option for Real Estate Investors?
How to Choose the Right Remote Real Estate Market for You
Home Purchase Fall Through? Don’t Panic: Here’s How to Get Your Earnest Money Back
What Is Underwriting? Here’s What to Expect
Resources Read, see, and learn more!
Link Real Estate Investment Calculators
Link BiggerPockets Blog
Link Path to Purchase
Link Mortgage Loans
Link Find a Contractor
Link Real Estate Agents
Link Hard Money Lenders
Link Real Estate Listings

Top Contributors

Jay Hinrichs
Jay Hinrichs
Lake Oswego OR Summerlin, NV
9.46
Score
Mike Baxter
Mike Baxter
Somewhere in the Scorching Heat of AZ
6.02
Score
Russell Brazil
Russell Brazil
Washington, D.C.
4.58
Score
Mary M.
Mary M.
Portland OR
3.89
Score

Buying & Selling Real Estate Discussion Trending Discussions

  • Seller financing on a 70 unit apartment building, pros and cons ?
    16 Replies
  • New at RE investment and looking for a flip
    10 Replies
  • Buying rental property before 25
    10 Replies
  • The roofer threatens to put a lien on the house
    5 Replies
  • Sell, Hold, or 1031
    4 Replies
Log in Sign up

Log in

Forgot password?

If you signed up for BiggerPockets via Facebook, you can log in with just one click!

Log in with Facebook

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Let's get started

We just need a few details to get you set up and ready to go!

Use your real name

Use at least 8 characters. Using a phrase of random words (like: paper Dog team blue) is secure and easy to remember.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Why create an account?

Receive a free digital download of The Ultimate Beginner's Guide to Real Estate Investing.

Connect with 1,000,000+ real estate investors!

Find local real estate meetups and events in your area.

Start analyzing real estate properties, we do the math for you.

It's free!

Explore

  • Membership
  • Community
  • Education
  • Marketplace
  • Tools
  • FilePlace
  • REI Resources
  • Perks
  • Glossary
  • Reviews
  • iOS App
  • Android App

Company

  • About Us
  • Press
  • Advertising
  • Careers
  • Stats
  • Contact Us

Important

  • Editorial Guidelines
  • Terms of Use
  • Rules
  • Privacy
  • FAQ

Social

  • Facebook
  • Twitter
  • YouTube
  • Instagram
© 2004-2021 BiggerPockets, LLC. All Rights Reserved.