Real Estate Agent · Malden, MA · Member since 2016 · 6 posts · 1 vote
I've read a lot about tax lien / tax deed investing, and what really surprises me is that I couldn't find / never heard of anyone in Boston area who has ever invested in tax deeds in real life.
I can see a couple reasons for that, but for now I was wondering if anyone has ever done any of that in real life in MA.
Lender · Tyngsboro, MA · Member since 2009 · 3k+ posts · 2k+ votes
10y
I have. 2 1/2 years ago we bought a portfolio of 19 liens. of that, we acquired one property, which the judge gave back to the homeowner even after we had gotten a judgement and passed the redemption period. 3 more are still in the legal system, with one of those on a 5 year payment plan because the homeowner is in bk.
My feedback overall is that it's not worth the time and paperwork. When I calculated out the estimated return, it was no where near expectations. Others feel differently, but those who are successful IMHO do it full time. For me it is a sideline to rental property and lending, so is not worth the effort.
Political climates vary from town to town here in MA. If you notice in the article Boston never publishes Tax Liens. Where as Lawerence, Lowell and Worcester will.
I have looked into them here in MA. It seems that investment companies target them in our state for the large interest rates. Tax Liens destroy the returns you can get from a CD with the bonus of maybe foreclosing on a property or two after a lengthy legal process in our land courts.
Lender · Tyngsboro, MA · Member since 2009 · 3k+ posts · 2k+ votes
10y
I have. 2 1/2 years ago we bought a portfolio of 19 liens. of that, we acquired one property, which the judge gave back to the homeowner even after we had gotten a judgement and passed the redemption period. 3 more are still in the legal system, with one of those on a 5 year payment plan because the homeowner is in bk.
My feedback overall is that it's not worth the time and paperwork. When I calculated out the estimated return, it was no where near expectations. Others feel differently, but those who are successful IMHO do it full time. For me it is a sideline to rental property and lending, so is not worth the effort.
I have never done tax deed in MA or Tax deeds at all. I have done significant number of tax liens. I can tell you, as @James Morrison said, it is not near as easy or lucrative as the gurus teach.
I do quite well but I do it full time. Tax sale tends to be very competitive. You are often competing against big money that doesn't need the margins you or I want.
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
10y
@Ann Bellamy are you saying that they are actually tax liens but they call them tax deeds? For example you have to go through a full foreclosure to get title?
Not much in Massachusetts. Although there aren't many, the towns are reluctant to sell them (most are older folks and the Towns will get their money when it goes to Probate) and our Courts are reluctant to enforce the actions they need.
Investor · Salisbury, MA · Member since 2015 · 240 posts · 69 votes
10y
I asked my town clerk about them and she said that in her 18 years in the collectors office, the town has never auctioned a home for taxes. I'm sure people invest in them by paying, for I hear 16%, but it seems only lucrative if you've got a bunch of cash to sit on for that long.
I've also seen where towns will take the land the house is on for taxes, which seems odd.
Lender · Tyngsboro, MA · Member since 2009 · 3k+ posts · 2k+ votes
10y
@Ned Carey, in MA a tax lien is technically called a tax taking, although no ownership of the property conveys. the lienholder must still go through a foreclosure process in the Massachusetts land court, the complexities of which are more than I would outline in this post. There is a redemption period as well, although we recently had a case where the judge allowed the homeowner to redeem even after the redemption period had passed. Gotta love MA land court - it writes it's own statutes.
Real Estate Agent · Malden, MA · Member since 2016 · 6 posts · 1 vote
10y
@Tim Wilkinson Never in 18 years? That indeed seems pretty far from what gurus teach. I got this exact impression that towns in MA are reluctant to conduct tax deed sales. Perhaps people in MA are way better taxpayers than what gurus think.
@Ned Carey have you ever done tax lien sales in CT or RI? I'm wondering how it works out there.
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
10y
@Dmitriy Pukhov my tax sale experience is limited to MD. Often the best place to get specific information about how tax sale works in an area is simply the county websites.
this article is very informative: you can invest in tax deeds and foreclose on the owners. In 18 years, the town has never auctioned a property. That doesn't mean they havens done a taking, and sold the tax deed to an investor who then foreclosed on the property.
Wholesaler · Lehi, UT · Member since 2015 · 333 posts · 144 votes
10y
Massachusetts is a deed state. In Boston there is the Department of Neighborhood Development where you will be able to see a listing of properties and make a RFP if you are interested. There are two types of property listings. It is dnd.cityofboston.gov where you will find these listings. Once you see something you like you will have to let the city know through a request for a proposal. It is very interesting. You can use the masslandrecords.com to find other types of listings. You will see a variety of things available to you here as well.