I've been researching tax deed auctions recently, and I've noticed that there is a minority of properties that come to auction that do not get claimed by the lien holder, nor any investors at auction.
These properties are then put into a category entitled "Lands Available", where they remain for a finite period of time (I think up to 7 years where I am from) with the city. After this period of time they are escheated.
Most of these properties have a tax bill way over what they are worth, which is why they were never bid on during auction.
Is there some sort of mechanism in place to try and negotiate more favorable rates with the local govt?
Does anyone have any experience in this?
I've never tried negotiating the amount. I don't think the tax collector or the clerk of courts has the flexibility to negotiate the amount due. But it is worth asking. Let me know your response.
@Russ Goodman that is what I figured as well. But it seems counter intuitive for the local govt to just hold those properties for 7 years, not collect any sort of tax revenue, and then escheat the land.
I mean these properties are typically the hairiest ones of the auction, so they need considerable work.
I don't disagree. But if the tax rolls and the assessments are certified as of a certain date for everyone, then the government is consistent and no one can claim unfairness . Govt I have found is married to its process, right or wrong. So long as they are true to the process, no one can fault them.
I don't disagree. But if the tax rolls and the assessments are certified as of a certain date for everyone, then the government is consistent and no one can claim unfairness . Govt I have found is married to its process, right or wrong. So long as they are true to the process, no one can fault them. @Brent Thurn Darn! Still can't get the mention to work!
A dead end.
@Wayne Brooks I like brevity in writing. But you're a little too terse!
@Wayne Brooks a hail mary I admit. You'd think there would be some sort of mechanism instead of sitting on dilapidated props.
Anyways. Do you still find success in tax deed investing still? Most of the locations I've looked at have gone online, so I fear the spread is narrowing.
What kind of rules do you typically have for yourself in this type of investing?
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I have seen investors have great success with tax deed property purchases. Duval County has 30 residential zip codes. It has 19 pages of prperties available on Lands available lists. There are still some good properties on the list.
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