the uglier side of tax sales

the uglier side of tax sales

Investor · Granger, IN · Member since 2015 · 195 posts · 129 votes

Just thought I would post for those interested in tax sales.  I attend several auctions a year and buying houses via tax sales has been the most profitable way for me to consistently purchase homes.  So I am sold on the process.  However anyone who jumps into this has to be aware that you are going to end up with houses with people still in them from time to time.  knocking on a door to explain to someone that you own their house and what is coming down the pike is difficult.  We do that and give people the option to rent, buy or leave the house prior to eviction based on the residents circumstances.  Generally it has gone well.  In the last two years we have had five of these.  Two are good renters, one is buying the house, and one was evicted.  The last one is the reason I am posting today however.  We gave the resident the option of renting below market of being paid $500 to leave the house prior to eviction.  We know this is an extremely difficult time for the resident so do want to make it as easy as possible for them.  Just so you are prepared for if this ever happens to you, today I received a call from the last one.  They said is was a crook and a fraud.  I have heard that before, however they ended the conversation with, "if you ever return to this house I will put a bullet through your head."  That one shook me up a bit.  I can't wait to meet them at the eviction.  In any case, you can make a lot of money on liens and tax sales, but the cost for that is the people and legal part of it.  Just make sure you know the legal or get good attorneys and be ready for the people part of tax sales.

5Reply
19 views

Most Popular Reply

Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
9y

I would always take a threat like that seriously. Some people are VERY unstable. Do your job, but be careful and avoid that person. 

See this reply in the discussion

26 Replies

Jump to latestLatest
  • Rockwall, TX · Member since 2014 · 380 posts · 211 votes
    9y

    @Greg Carrier

    Congrats on successfully working tax sales.  Where are you concentrating?

    It can be profitable but does come with its own set of challenges.  Just make sure you have done everything legally required and let the sheriff or constable handle the set-out.  No sense tempting fate in an already emotional time.

    Good hunting.

  • Investor · Birmingham, AL · Member since 2016 · 446 posts · 305 votes
    9y

    This is why I only deal with failing companies & abandoned houses.

    I bought one at auction Tuesday and turns out that the owner still frequents the property. Yesterday I finally got in contact with them and explained that I was the purchaser and want no dealings with this house and that they should redeem ASAP so I can get my money back.

    Turns out the son was supposed to pay the taxes and did not and now is in trouble cause the father wants to know what he did with the money.

  • Investor · Granger, IN · Member since 2015 · 195 posts · 129 votes
    9y

    @Roy Oliphant Michigan and Indiana although we do buy some liens in Florida from time to time.  How about you?

  • Investor · Granger, IN · Member since 2015 · 195 posts · 129 votes
    9y

    @Anastasia Jordan Don't you think it is hard sometimes to tell what may be abaondoned and what may be still lived in but in OMG this is bad condition?

  • Atlanta, GA · Member since 2016 · 91 posts · 67 votes
    9y

    I guest here is where the "tax deed state with redemption period" become handy. The recent-lost-deed-homeowner has last chance to pay-or-loose the house or at least a period of time (1yr for GA) to absorb the shocking news before facing the ultimatum. 

  • Property Manager · Griffith, IN · Member since 2015 · 1k+ posts · 913 votes
    9y

    it shouldn't be a surprise to the owner. Indiana is a tax lien state. The county notified them their house is going for sale in the fall after they've missed 3 semi annual payments. After their property is "sold," the tax lien holder has to do a series of notifications over a 12 month period before their is a court hearing. The current owner can redeem at any point. After the court hearing, the tax lien holder gets the deed. They had plenty of time to get their ducks lined up. Boot them out and move on. I'd like to see them put a bullet in my head when the sheriff shows up with me to boot them out. 

  • Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    9y

    I would always take a threat like that seriously. Some people are VERY unstable. Do your job, but be careful and avoid that person. 

  • Investor · Birmingham, AL · Member since 2016 · 446 posts · 305 votes
    9y
    Originally posted by @Greg Carrier:

    @Anastasia Jordan Don't you think it is hard sometimes to tell what may be abaondoned and what may be still lived in but in OMG this is bad condition?

     Its not hard for me to tell especially if the owner is out of state. This slipped through the cracks because of the yard (technically forrest) was so bad the house was not fully accessible. On the day of the auction I went to the house and he cut a trail through the bamboo so you could reach the backyard. 

  • Keith ThompsonPro Member
    Investor · Centreville, VA · Member since 2016 · 109 posts · 65 votes
    9y

    @Greg Carrier - I agree with @John Thedford that you should absolutely treat that threat seriously.  Avoiding the individual will however be difficult unless you take steps. I would inform the local authorities, file a complaint and pursue the possibility of restraining order. The RO may help to keep them away from the property and give you opportunity to work on it.  A restraining order may help with the eviction too.  Regardless, the authorities need the heads up prior to future dealings with that person in eviction or otherwise.

    This person lost all reason to hope for your respect and tolerance when they threatened you.  I would move as swiftly as the authorities can accommodate - both civilly and criminally. I'd check with/hire an attorney to get access to the property and an RO that prohibits this person from entering upon YOUR property.

    I'm interested in hearing how this progresses as it is surely something that each of us will face whether acquiring by Tax Lien or other distressed means.  I have not yet had this happen, but I know it will at some point.

  • Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    9y

    @Greg Carrier,

    That last person's comment is threat and you'll want to have law enforcement support when the eviction occurs. If possible, stay away and let the sheriff's people handle it.

    Pursue charges if you think it will have a positive outcome. Otherwise, move on.

  • Keith ThompsonPro Member
    Investor · Centreville, VA · Member since 2016 · 109 posts · 65 votes
    9y

    @David Dachtera - Are you saying that my comment constituted a threat in some way or were you referring to the home occupant?

  • Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    9y

    @Keith Thompson,

    Yes - I was referring to the occupant. Sorry - I'm a bit hard to follow at times ...

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    tread lightly.... lots of weirdo's out there.... and many a landlord has been shot and killed.. its no joke

    I would file a police report.

  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    9y

    @Greg Carrier  interesting story, yes please keep us posted.  

    It is surprising how when you make an effort to work with someone how often they choose the one option that is obviously the worst for them.

  • Keith ThompsonPro Member
    Investor · Centreville, VA · Member since 2016 · 109 posts · 65 votes
    8y

    @Greg Carrier - looking over some old posts and cam across this one.  What did you end up doing and what was the outcome of this?

  • Investor · Granger, IN · Member since 2015 · 195 posts · 129 votes
    8y

    Thanks for the prodding.  I am embarrassed to say I did nothing with the house over the last year.  The old residents are still living there.  We had plenty of other houses to do so I was not in a rush but maybe I was just making excuses.  Back when I did send a letter letting them know that we would be evicting in the future and that if they moved prior and gave us keys we would pay them.  They never responded to that letter and as of Friday I finally sent the tax deed and the retainer to an attorney in that county so they can file the eviction.  I'll let you know if anything happens out of the ordinary.  It may sound paranoid but I also bought a 9mm and applied for a concealed weapons permit.  I grew up around guns and was in a couple of different branches of the military years ago so that is not a huge leap for me but think I may feel a tiny bit more comfortable having it if I am at the house.  I may do the eviction and let it sit another year or flip it too just be done with it.

  • Investor · Birmingham, AL · Member since 2016 · 446 posts · 305 votes
    8y
    Originally posted by @Greg Carrier:

    It may sound paranoid but I also bought a 9mm and applied for a concealed weapons permit.

    Nothing about that sounds paranoid. You have to be protected.

  • Rockford, MN · Member since 2017 · 87 posts · 31 votes
    8y
    Originally posted by @Greg Carrier:

    Thanks for the prodding.  I am embarrassed to say I did nothing with the house over the last year.  The old residents are still living there.  We had plenty of other houses to do so I was not in a rush but maybe I was just making excuses.  Back when I did send a letter letting them know that we would be evicting in the future and that if they moved prior and gave us keys we would pay them.  They never responded to that letter and as of Friday I finally sent the tax deed and the retainer to an attorney in that county so they can file the eviction.  I'll let you know if anything happens out of the ordinary.  It may sound paranoid but I also bought a 9mm and applied for a concealed weapons permit.  I grew up around guns and was in a couple of different branches of the military years ago so that is not a huge leap for me but think I may feel a tiny bit more comfortable having it if I am at the house.  I may do the eviction and let it sit another year or flip it too just be done with it.

     I just wanted to say, I hear you. I have one of I am working on too.

    The sad part though, he will still have redemption rights after this whole mess, and I am not the guy to take peoples homes away, I'd rather stick with those that just give up and move on. And I understand fighting for his home. Regardless this guy is going to make it so much more expensive for him to recover despite my efforts to make this easy and just make a few hundred bucks. 

  • San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
    8y

    @Greg Carrier Wow, thanks for sharing! This has been an area of interest to me. I've heard these types of stories as well when it comes to buying at the tax sale. Best of luck at the eviction! 

  • Investor · Granger, IN · Member since 2015 · 195 posts · 129 votes
    8y

    @Rachel H. and @David Tubesing  Thanks for the replies.  I have a theory that most people are in denial about the bad things in their lives from time to time and just kind of hope if they ignore some issue it will go away.  In a very simple way that is why I rarely check my weight when I fell heavy and always check it when I am losing weight.  I know that is a trivial thing but lots of people try to ignore all kinds of problems.  Not sure if they got served the court papers yet, but I expect they are back to kind of hiding from the big problem and hoping it will go away.  I would still work a deal with them if it made sense.  I don't really need to win or lose on this particular house, I do need to see it to some conclusion though.  In any case I will post when we get through the next step.

  • Rockford, MN · Member since 2017 · 87 posts · 31 votes
    8y

    @Greg Carrier

    I agree. They sit there and think if they ignore the problem that it will go away, when in reality it’s just making things bigger.

    I’m not a jerk, but.... I must say when people don’t respond and refuse to play nice it’s a lot easier for me to make them getting their house back very difficult.

    It is amazing how helpful I can be to someone that’s nice.

  • Investor · Granger, IN · Member since 2015 · 195 posts · 129 votes
    8y

    So we filed for the eviction and as usual, the tenants did not show up.  Consequently they were served with an order to leave which the did not do.  We have contacted the local police to remove them but I have been told the police are not keen on doing that (although it is the law) so we will run down that path until it is done.  I do expect to give them some kind of cash when it happens.  I know I don't have to and they have threatened me but... 1.  They are typical dyfunctional americans who are incapable of preparing for this and 2.  Karma I don't want to end my life thinking about the people who lived in their van after I evicted them, and finally 3.  This is a really rough house but I only paid a couple of thousand for it so expect this will be a profitable venture.  If it was so tight I did not think it would be I could just walk awa

    Will let you know if anything strange pops up.

  • Investor · Granger, IN · Member since 2015 · 195 posts · 129 votes
    8y

    Hey just to close this out....  Tenants finally moved out after police order to move within 30 days.  house is a mess as expected, though we only paid around $2000 or $2400 for it  (I have forgotten but one of those amounts).  We have another $1800 in for legal and taxes into it.  It really needs everything including some heavy duty framing and a completely redesigned roof, but that comes with these kind of deals.  Thanks for following.  If anyone has any questions about how this process works in Indiana, just message me. 

  • Investor · Princeton, IN · Member since 2017 · 109 posts · 54 votes
    8y
    @Greg Carrier Hello Greg I sent you a connection request! I'm an investor out of southwestern Indiana and would love to start buying at tax sales. I'm sorry you had to go through this!
  • Investor · Granger, IN · Member since 2015 · 195 posts · 129 votes
    8y

    Thanks John, I accepted.  Also if you ever want to call or text.  I normally respond a little quicker that way.

    Gre

Join the conversationCreate a free account to reply, vote on answers and follow this thread.