Orlando, FL · Member since 2018 · 8 posts · 1 vote
Hi, quick question, I've read that the Tax Lien Holder is not allowed to contact property owners for 2 years from winning the bid, does any body know how it works for Tax Deed and how about other investors? Can other investors (not Tax Lien Holder) contact the property owner about interest in buying their property after the Bidding, after their Tax Lien has been sold?
No you should not contact the owner for tax liens in Florida. I’m sure every state has its own rules and regulations.
It is still America so I’m sure another investor could contact the owner if they wanted. The state does not want a tax lien holder harassing the home owner. After 2 years of owning the lien you may ask the sheriff to sell the property and then bid on it at that time if you want to own it. If no one bids you will get the property for the lien value from the sheriff.
Tax deeds in Florida you become the owner so the question is moot. Other states have time limits for the owner to redeem. State by state.
No you should not contact the owner for tax liens in Florida. I’m sure every state has its own rules and regulations.
It is still America so I’m sure another investor could contact the owner if they wanted. The state does not want a tax lien holder harassing the home owner. After 2 years of owning the lien you may ask the sheriff to sell the property and then bid on it at that time if you want to own it. If no one bids you will get the property for the lien value from the sheriff.
Tax deeds in Florida you become the owner so the question is moot. Other states have time limits for the owner to redeem. State by state.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
8y
There is no issue with contacting an owner with a property going to tax deed. I bought a few that way years ago. 3-4 days before the sale I was the first one to the door. Problem is Everybody is doing it now. They get 1-2 dozen letters, and a dozen or so people knocking on their door. The cat’s out of the bag. You need a new trick.
Orlando, FL · Member since 2018 · 8 posts · 1 vote
8y
Hi, thank you all for the replies, I found the statue:
197.432 Sale of tax certificates for unpaid taxes
(13) The holder of a tax certificate may not directly, through an agent, or otherwise initiate contact with the owner of property upon which he or she holds a tax certificate to encourage or demand payment until 2 years after April 1 of the year of issuance of the tax certificate.
(14) Any holder of a tax certificate who, prior to the date 2 years after April 1 of the year of issuance of the tax certificate, initiates, or whose agent initiates, contact with the property owner upon which he or she holds a certificate encouraging or demanding payment may be barred by the tax collector from bidding at a tax certificate sale. Unfair or deceptive contact by the holder of a tax certificate to a property owner to obtain payment is an unfair and deceptive trade practice, as referenced in s. 501.204(1), regardless of whether the tax certificate is redeemed. Such unfair or deceptive contact is actionable under ss. 501.2075-501.211. If the property owner later redeems the certificate in reliance on the deceptive or unfair practice, the unfair or deceptive contact is actionable under applicable laws prohibiting fraud.
I understand many investors might be doing this, but if we all backed out of the race because we have competition then we automatically loose, the only way to have a shot is to stay in the game.
I also understand the owners may not be appreciative of the postcards and yellow letters, until they realize the best option is to sell before they loose all the equity in delinquent tax related fees and interest once they are foreclosed on, at least if they sell early enough they get something back. If I was one of the owners in a tight spot looking to sell, I would probably call the number on several postcards and go with the best offer if I'm not able to sell through MLS.
I can see how investors contacting property owners with offers to redeem the certificate and buy the property might upset the certificate holder a bit, after all the golden goose is getting the property not the % return on $ and redeeming the certificate puts them out of the equation, but I do believe it's the better scenario for the property owners. Like I said, they get a bit of equity back if any, and get to save their credit. It's a win, win, win, when the property gets sold because the owner may get some $ back and save their credit, the Certificate Holder gets some % of their $ back, and the investor gets a property to work with (rent, fix and flip, etc...).
Wholesaler · Lehi, UT · Member since 2015 · 333 posts · 144 votes
8y
@Alejandro Perez You can contact a property owner of a tax deed but once you own the deed why would you want to unless you have questions about the property. Once you own the deed, you are the owner. Tax deed auctions take place from tax liens being put into foreclosure. If you are working with tax liens, and your lien is past the two year redemption period you can have the County reach out to the property owner to send them a legal letter or a certificate warning, if they haven't already. Counties are usually helpful in doing this. Keep in mind, not all counties are the same though.