How can someone that does NO own the property redeem the taxes???

Question

I just received a check in the mail where one of the properties I was holding a tax lien on had been redeemed. I just go to looking at it and seen that the person who redeemed in was the past owners. The lawyer that did the title exam had listed them on there to be served with a notice to redeem. I didn't understand that and nor do I understand how that can jump in there and pay it for him???? I just looked it up and the past owners (the one that redeemed) gave him the property under a QCD for no monies and at the end of it it says from Grandfather to grand son.

Ned Carey · Answer

@Christina Hall tax sale can be frustrating. just when you thin you are going to get a property someone pays off. If fact, one was a potential home run deal. A day after I got judgement the owner redeemed. However it was before the judgement was docketed. I lost in court and the owner was allowed to redeem. I won't tell you who wound up getting that home run deal but lets just say it is a small world.

@Rich Baer why don't you just ghost write a book for me since I haven't gotten around to it.

Account Closed · Answer

@Christina Hall I do not understand why you thought someone could not pay someone else's debt. They basically always can.

If you do not like this you would probably hate me. I have been known to go to people and basically buy out their redemption rights.

I watch for people to spend money on properties that are still in the redemption period. Then I will make an agreement with the previous owner and wait until the last minute to redeem in order to maximize the improvements. New roofs and foundation repairs are common.

Tax auctions are not for beginners.

Rich Baer · Answer

@Ned

@Ned Carey Would it be called" Tax Sales- The good, The Bad, and The Ugly" by Rich Baer & Ned Carey or Ned Carey and Rich Baer?

Emmett R. McCarthy · Answer

As noted above, in many states (including IL), anyone with an "interest" (this is what gets litigated) in real estate can redeem a tax sale. In IL, undisclosed beneficiaries of a land trust are excluded. When someone who does not appear to have an interest in property redeems, the tax buyer can file a motion to expunge that redemption. In IL, "the law favors redemptions" and tax buyers are not entitled to the property. That being said, in IL tax buyers can make a lot of money on redemptions and penalty rates while also getting tax deeds to some properties. As Rich and Ned noted above, all kinds of things can happen with tax sales. It's good to be creative and work with an attorney who really understands the laws and the local procedures in the states and counties where you are buying.

Rich Baer · Answer

@Christina Hall

Christina,

In Maryland, anyone with an interest in the property can step in pay off the tax sale debt. I am assuming it is the same in West Virginia. It is more surprising when someone doesn't pay it off. It is how the game is played. I have been in the tax sale business for 20 years. I could write a book on the good and the bad of it all.

Rich Baer, Esq.

Jay Hinrichs · Answer

Account Closed Michael your sand box has some pretty dull players in it.. that's tax or foreclosure redemention one oh one... LOL

I bought a property a few years back at court house steps.. 6 weeks earlier the second went to sale.

I keep checking on the property and the buyer is in there fixing it all up etc etc.. I figured no way this will go he will pay off first no one is that clueless.

Friday morning rolls around sale is still scheduled run over and get my checks... ( need cash at our sales I think in texas too)... out bid some of the regulars since they did not realize the house had just been totally rehabbed.

that was one shocked dude when my people showed up to change the locks.. we had to call police.

knowledge and full knowledge is key in this business..

Josh Carr · Answer

@Rene Did you get the list of what sold and for how much to get the info you are providing the owner? I find it is very hard to locate people when they don't pay their taxes and I was not aware that Hawaii provides emails or maybe you found that on your own. Please tell. Usually people who don't pay taxes won't leave a forwarding address. Kudos to you. That's exciting!

Rene Brignone · Answer

I'm a super green newbie or what I call a WBI wanna be investor and am just putting together my first offer to recover overages for a previous owner who lost two properties to tax lien sales in Hawaii, actually initial contact is made email and sent hard copy snail mail with offer to recover about 80,000...but will actually provide about 90,000...while pocketing / reinvesting about 36,000 . Just hit me with all ya got folks I wanna learn.

Ned Carey · Answer

@Rich Baer you can choose between the good and the bad. We will have to come up with a third author to be the ugly.

How can someone that does NO own the property redeem the taxes???

How can someone that does NO own the property redeem the taxes???

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