Bogus Mechanical Lien to stop people bidding on Tax Deed

Bogus Mechanical Lien to stop people bidding on Tax Deed

Davenport, FL · Member since 2016 · 4 posts · 0 votes

Hello,

There is a property I am interested in that is a condo and the owner is "XXX LLC." The LLC was set up by another Corporation, whose Manager is the person that put a huge Lien ($200K+) on their own properties.

I believe this was done to scare potential bidders away from bidding on the Tax Deed Auction.  Would a Quiet Title expose this bogus lien?

Can the owner of their own LLC legally put a lien on their own property? Isn't this shady? They also got it recorded by the county.

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  • Asheville, NC · Member since 2017 · 170 posts · 242 votes
    9y
    What state is this in? In NC a tax sale would wipe out this lien. Could he be doing it to write off the loss?
  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    9y

    Assuming this is FL, it matters not....the tax deed auction wipes out the lien.  I'm they did it for other reasons, albeit none of them legit.

  • Davenport, FL · Member since 2016 · 4 posts · 0 votes
    9y

    Yes this is Florida.  

    What if they weren't properly notifed? If they were manager of the LLC, you'd expect them to know that the taxes were unpaid. I looked up the sheriff notice though and it was posted in the County Gazette newspaper. They could not serve the original owner as the address was sent to the condo location.

    Could they claim that in Court that they werent notified.  Worse case scenario, would they have to pay me what I paid in the auction plus interest?  

    They are a registered manager of the LLC that has also put a lien on their llc.

  • Paul AmegatcherPro Member
    Rental Property Investor · Brookville, OH · Member since 2016 · 488 posts · 363 votes
    9y
    Originally posted by @Jay Patel:

    Yes this is Florida.  

    What if they weren't properly notifed? If they were manager of the LLC, you'd expect them to know that the taxes were unpaid. I looked up the sheriff notice though and it was posted in the County Gazette newspaper. They could not serve the original owner as the address was sent to the condo location.

    Could they claim that in Court that they werent notified.  Worse case scenario, would they have to pay me what I paid in the auction plus interest?  

    They are a registered manager of the LLC that has also put a lien on their llc.

     They were served by publication since this was posted in the newspaper. That is acceptable service but you may want to verify with an attorney.

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