Can the county supervisors undo the sale? Seems like a similar thing happened in San Francisco 5-6 years ago. I followed that case closely at the time. They did undo that sale. Not sure the final outcome, but I'm guessing that is a case where you think things are risk free, but I expect the purchaser was out significant legal fees that were not reimbursed and ended up not getting the property.
I've always thought about this in the rare instance that a super nice and super valuable property goes to sale with a mortgage on it. I don't think Mr. Big 3 bank is going to just let this go. They're going to fight and very well might get the property back. While we are reading about fun cases, there is a frequent buyer in Texas that just took a case to the SCOTUS, but they declined to hear it. Not sure what that costs. From what I remember his purchase was rescinded on what must of been a pretty s valuable property. Not sure where the ad litem attorneys stand in all this. Sometimes maybe often times they aren't doing enough to track down the owner or owner's heirs and just collecting checks from the court.
Can the county supervisors undo the sale? Seems like a similar thing happened in San Francisco 5-6 years ago. I followed that case closely at the time. They did undo that sale. Not sure the final outcome, but I'm guessing that is a case where you think things are risk free, but I expect the purchaser was out significant legal fees that were not reimbursed and ended up not getting the property.
I've always thought about this in the rare instance that a super nice and super valuable property goes to sale with a mortgage on it. I don't think Mr. Big 3 bank is going to just let this go. They're going to fight and very well might get the property back. While we are reading about fun cases, there is a frequent buyer in Texas that just took a case to the SCOTUS, but they declined to hear it. Not sure what that costs. From what I remember his purchase was rescinded on what must of been a pretty s valuable property. Not sure where the ad litem attorneys stand in all this. Sometimes maybe often times they aren't doing enough to track down the owner or owner's heirs and just collecting checks from the court.
we have a FC coming up where lets say the loan was $500k and the property is worth $1.5M. People are chomping at the bit thinking they are going to get a steal for this property and they keep calling us as the lender. When we tell them our opening bid is $1.5M they try and negotiate off the $500k because that was the original loan balance but due to other circumstances like modifications etc. the loan balance has increased significantly. We see people thinking they will make the quick buck.
We also had a second position loan we foreclosed on and the buyer did not realize there was a first position loan - they called us wanting their money back....
In California the right of redemption expires the day before the tax sale takes place. The city screwed up and liened Direct Charges on the common area which has an assessed value placeholder of $1.
The purchaser is going to be out all their time, legal fees, fees for setting up their Wyoming entity, etc. They'll receive back only the bid amount. The sad part of this story is if any other taxpayer failed to update their address and a lien was sold, nobody would pay any attention to reversing that sale. Any individual would be out their real estate. But because an HOA made the mistake and the county operated a crooked auction the purchase will just get back what they bid, $6600.
I see so many people who don't understand what they are bidding on.
They don't do the research, they don't drive by to see that the Google st view is not accurate and they put down a bunch of cash on a bad property.
Can the county supervisors undo the sale? Seems like a similar thing happened in San Francisco 5-6 years ago. I followed that case closely at the time. They did undo that sale. Not sure the final outcome, but I'm guessing that is a case where you think things are risk free, but I expect the purchaser was out significant legal fees that were not reimbursed and ended up not getting the property.
I've always thought about this in the rare instance that a super nice and super valuable property goes to sale with a mortgage on it. I don't think Mr. Big 3 bank is going to just let this go. They're going to fight and very well might get the property back. While we are reading about fun cases, there is a frequent buyer in Texas that just took a case to the SCOTUS, but they declined to hear it. Not sure what that costs. From what I remember his purchase was rescinded on what must of been a pretty s valuable property. Not sure where the ad litem attorneys stand in all this. Sometimes maybe often times they aren't doing enough to track down the owner or owner's heirs and just collecting checks from the court.
we have a FC coming up where lets say the loan was $500k and the property is worth $1.5M. People are chomping at the bit thinking they are going to get a steal for this property and they keep calling us as the lender. When we tell them our opening bid is $1.5M they try and negotiate off the $500k because that was the original loan balance but due to other circumstances like modifications etc. the loan balance has increased significantly. We see people thinking they will make the quick buck.
We also had a second position loan we foreclosed on and the buyer did not realize there was a first position loan - they called us wanting their money back....
Sounds like the county failed on multiple levels including not giving proper notice, not sending notices to the correct address, etc. hopefully the county gets it act together.
In California the right of redemption expires the day before the tax sale takes place. The city screwed up and liened Direct Charges on the common area which has an assessed value placeholder of $1.
The purchaser is going to be out all their time, legal fees, fees for setting up their Wyoming entity, etc. They'll receive back only the bid amount. The sad part of this story is if any other taxpayer failed to update their address and a lien was sold, nobody would pay any attention to reversing that sale. Any individual would be out their real estate. But because an HOA made the mistake and the county operated a crooked auction the purchase will just get back what they bid, $6600.
Bruce there is also that famous case in San Fran in the Seacliff area of 5 to 30 mil homes and someone bought their right of way on a small private street and were trying to block them off and then of course sell it back to these folks. Not sure what the out come was but it made headline news.
reality thought 99% of tax sales for little strips of land are just wasting money.
Bruce there is also that famous case in San Fran in the Seacliff area of 5 to 30 mil homes and someone bought their right of way on a small private street and were trying to block them off and then of course sell it back to these folks. Not sure what the out come was but it made headline news.
I think that was the one I was following a few years ago. I reached out to the buyer several times from what I remember, but they never responded. I wanted to go to hearings/trial, but never went out there. I think it was a couple from San Jose area that bought it. If I remember right they ended up having a hearing at the board of supervisors and I watched it online. Attorney for HOA said it was pretty easy to find the HOA address and the county should have done more to hunt them down. They got that sale rescinded. I'm kind of thinking the buyer represented themselves and acted a bit innocent. Defense was just something like I just wanted to buy a part of San Francisco for cheap, I wasn't planning to do anything sinister. In my devious mind, I thinking like you that I hire a parking attendant, install gates and charge an entrance fee if I bought it. I don't think they had done anything like that or tried before it got rescinded. However I'm thinking if I ever hit the windfall on something like this, their pockets are probably way deeper than mine and I'm not going to want to spend the money to fight it.
Bruce there is also that famous case in San Fran in the Seacliff area of 5 to 30 mil homes and someone bought their right of way on a small private street and were trying to block them off and then of course sell it back to these folks. Not sure what the out come was but it made headline news.
I think that was the one I was following a few years ago. I reached out to the buyer several times from what I remember, but they never responded. I wanted to go to hearings/trial, but never went out there. I think it was a couple from San Jose area that bought it. If I remember right they ended up having a hearing at the board of supervisors and I watched it online. Attorney for HOA said it was pretty easy to find the HOA address and the county should have done more to hunt them down. They got that sale rescinded. I'm kind of thinking the buyer represented themselves and acted a bit innocent. Defense was just something like I just wanted to buy a part of San Francisco for cheap, I wasn't planning to do anything sinister. In my devious mind, I thinking like you that I hire a parking attendant, install gates and charge an entrance fee if I bought it. I don't think they had done anything like that or tried before it got rescinded. However I'm thinking if I ever hit the windfall on something like this, their pockets are probably way deeper than mine and I'm not going to want to spend the money to fight it.
I remembered that deal too so had to look it up…
original deal:
https://www.cnn.com/2017/08/08/us/couple-buys-san-francisco-....
2015 this time. They actually failed to pay taxes in 1983 as well according to the follow up article below. 2 years later in 2017 the County reversed the sale voting 7-4 against “these out of town speculators trying to make a big payday” and for the fine people of their district.
https://www.sfgate.com/politics/article/SF-supervisors-to-vo...
I remembered that deal too so had to look it up…
original deal:
https://www.cnn.com/2017/08/08/us/couple-buys-san-francisco-....
2015 this time. They actually failed to pay taxes in 1983 as well according to the follow up article below. 2 years later in 2017 the County reversed the sale voting 7-4 against “these out of town speculators trying to make a big payday” and for the fine people of their district.
https://www.sfgate.com/politics/article/SF-supervisors-to-vo...
As everyone should see from the above posts, investing in real estate, especially foreclosure and tax sales, REQUIRES a working knowledge of legal aspects that can possibly affect the purchase.
Here’s the bottom line: Long term success as a real estate investor or real estate business owner requires knowledge of (1) real estate principles (2) real estate finance and (3) real estate law. Without this foundation any money spent on gurus, courses, books mentorships that teach techniques and methods is WASTED, even if the methodology being taught is valid. What these $20 - 40k “mentorship’s” sell is a SHORTCUT, but it does NOT work because the PRIMARY real estate education and knowledge MUST be there in order to be able to implement and strategy or tactic correctly, at the correct time, and under the correct conditions.
As everyone should see from the above posts, investing in real estate, especially foreclosure and tax sales, REQUIRES a working knowledge of legal aspects that can possibly affect the purchase.
Here’s the bottom line: Long term success as a real estate investor or real estate business owner requires knowledge of (1) real estate principles (2) real estate finance and (3) real estate law. Without this foundation any money spent on gurus, courses, books mentorships that teach techniques and methods is WASTED, even if the methodology being taught is valid. What these $20 - 40k “mentorship’s” sell is a SHORTCUT, but it does NOT work because the PRIMARY real estate education and knowledge MUST be there in order to be able to implement and strategy or tactic correctly, at the correct time, and under the correct conditions.
I see so many people who don't understand what they are bidding on.
They don't do the research, they don't drive by to see that the Google st view is not accurate and they put down a bunch of cash on a bad property.
I was at a live tax deed auction once and the last property up for bid was a dilapidated 70s era mobile home on a leased space in MH park. The bidding started at $1500 and two bidders were competing with each other as the price exceeded $5k.
The auction was being run by a law firm, and once the bidding exceeded $5k, the auctioneer stopped the auction and told both bidders "You're bidding on the mobile home and not the lot. You will have to either rent out the unit, live in it, or move it off the lot. I'll give you 30 seconds to withdraw your bids". Both bidders immediately withdrew.
I was quite surprised at both how neither bidder knew what they were bidding on, and that they were given an out before spending their money.