Delinquent Taxes vs. Tax Lien
Professional · Dallas, TX · Member since 2013 · 72 posts · 17 votes
Delinquent Taxes vs. Tax Lien
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@Account Closed I had started typing a response to you that was going to say counties don't publish parcels that are delinquent on taxes unless it's for the lien sale. Then I decided to look up what the Mecklenburg County website had listed.
You lucked out big time! Your county has a tool on the website that allows you to look up delinquent taxes by year. So you can get the most current delinquent taxes for the year.
Here is the link to the page: Mecklenburg County Delinquent Taxes Make sure you click on the "Delinquent Bill Search" tab at the top. It defaults to a different search first.
You can drill down to each parcel and get the details. This is pretty amazing information to get your hands on so easily.
Good luck!
8 Replies
- Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes12y
Robert tax liens and tax deeds vary by state and even county and city in some cases.
Call your tax assessors office. Generally in some cases how it works is if taxes are not paid a lien is filed. The county or city sells off this lien because the need the money TODAY to keep funding county or city operational services for the well being of the public.
There is usually a redemption period where the full amount and any penalties must be paid ( no partial amounts accepted ). If paid in full before the time runs out the certificate holder gets cashed in on their lien. If not then in a year or few years there can be a tax deed sale where they auction off the property. You can then after some time proceed to quit title and try to take ownership of the property.
I am giving a VERY BASIC run down of how things work. You really need to talk to a tax lien attorney in your area ( maybe take them to lunch ) to learn nuts and bolts and see if your plan is viable based on how it works there.
- Professional · Dallas, TX · Member since 2013 · 72 posts · 17 votes12y
@Joel Owens You Da Man. I appreciate the reply. I am certainly a proponent of leveraging other people's knowledge and time so taking an attorney out to lunch to get a more in-depth look at how this is a viable source of income.
Any Change you can bless my other thread with your knowledge?
http://www.biggerpockets.com/forums/32/topics/108567-advice-on-finding-off-market-mf-deals-using-targeted-mailers
It has to deal with getting Off-listings. As a budding CRE broker, i'd like to hear your method on how you got that off-listing with the $0.34 mailer that netted you about $30,000. I'm a fan of finding deals unconventionally and I think a lot of people would benefit from your response.
Thanks for your help!
@Account Closed I had started typing a response to you that was going to say counties don't publish parcels that are delinquent on taxes unless it's for the lien sale. Then I decided to look up what the Mecklenburg County website had listed.
You lucked out big time! Your county has a tool on the website that allows you to look up delinquent taxes by year. So you can get the most current delinquent taxes for the year.
Here is the link to the page: Mecklenburg County Delinquent Taxes Make sure you click on the "Delinquent Bill Search" tab at the top. It defaults to a different search first.
You can drill down to each parcel and get the details. This is pretty amazing information to get your hands on so easily.
Good luck!
- Professional · Dallas, TX · Member since 2013 · 72 posts · 17 votes12y
@Jerry K. You should head on down here to Mecklenburg county. Home to the winning season Carolina panthers. Haha. Seriously I thank you! I have been on that site multiple times but have never seen this data. If there's any way I can help you out let me know. I'm a CRE broker with quite a few connections down here.
Now the burning question is. Now I've got the "ingredients" how do I utilize this information to make my ingredients into some serious "dough."
Thanks again any additional help from your experience as a lien investor is icing.
@Account Closed When you wrote the original post you mentioned you wanted a list of properties that were late on taxes but had not yet gone through the lien or auction process. What was your thought process on what to do with that list?
- Professional · Dallas, TX · Member since 2013 · 72 posts · 17 votes12y
@Jerry K. Ok so here is my theory. Finding those delinquent on taxes and coming to them offering to purchase their home at a discount of the equity in the house and minus the back taxes. Essentially I'd like to help them get some money out of their sale while also helping me pick up a house at a discount or "creatively" and using it as a rental and or rehab project. I do not know if that helps give you a good idea but I'd like to know if it's possible to acquire properties by negotiating seller to sell before it goes to foreclosure.
Thanks
- Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes12y
Finding those delinquent on taxes and coming to them offering to purchase their home
@Account Closed
@Account Closed you can do that if they are just delinquent or if there is already a lien on the property. In tax lien states, until a foreclosure is completed the original property owner can sell the property and simply pay off taxes and related costs.
Good luck - Ned
@Account Closed You probably already read these but here is a link specifically to Mecklenburg county regarding real estate tax foreclosures in your area. They do post the delinquent taxes and that other website page I mentioned in my first post gives you the list quickly.
Interesting to read from this that they can start a tax foreclosure at any time once the taxes are delinquent. No specific time frame must pass. You should reach out to a local attorney who specializes in tax foreclosures and get the scoop. Things like, how long after taxes go delinquent is typical before the county starts a foreclosure.
The county looks like they use one firm to handle the foreclosures and the auctions are on the courthouse steps. North Carolina has an "upset period" of 10 days after the auction where a person can bid at least 5% higher than the winning bid at the auction.
Also the owner or other lien holders on the parcel can pay the taxes at any point up until the auction occurs. There is no redemption period for the owner once the auction is held. You still need to do your due diligence as your title given from the auction has no warranty.
Some options you could pursue are to approach the people who own the properties that are listed to be auctioned and offer to buy the property so they get something in return before they lose the property. Make sure you know all the other liens on the property if you do that. Buying before the foreclosure auction keeps all the other liens in force.
You could reach out way before the auction notice is listed like you originally described. Just know that many people choose to pay their taxes each year. But it is a numbers game, you will find some unique situations on occasion where somebody knows they will never pay the taxes and may want to unload the property well before any county action starts.
Lots of laws to consider, so do not take my advice as anything more than a suggestion or two on actions to look into pursuing.
Take a look at that webpage with the delinquent taxes and look at some of the commercial buildings in the over $5,000 range using "ALL" for tax years. A couple of foreclosures, but interesting properties. Look out for bankruptcies too.
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