What do you do and say when you run into property owners, while scoping out their property with a tax lien? 

Has anyone ever experienced a hostile situation? Anyone had their lien redeemed very quickly after loitering around a property (I know you're not supposed to actually step foot on the property)?

I'd ask if they plan on redeeming the property or if they would be interested in selling.

Never had anyone get hostile.

@Account Closed

I always send someone and what I tell them is the truth, I typically send people by when we buy distressed mortgages and have them say we are a lender inspecting the property

Sure...people are there sometimes.  Stop and talk to them.  Tell them you are thinking of buying in the neighborhood.  Ask if they like their house, like the neighborhood, ask if they ever thought of selling?  Ask if you can see inside the house.  It is a rare opportunity.   Ask if they have been in other homes?   Ask if theirs is better or worse than any others in the neighborhood.  Ask them more questions about themselves...how long you lived here.  Is it your home or do you rent?  What do you pay for rent?  Would you like to stay?

Last one we did they stayed as tenants & they are great....so far!!

Originally posted by @Chris Seveney :

@An Lam

I always send someone and what I tell them is the truth, I typically send people by when we buy distressed mortgages and have them say we are a lender inspecting the property

my Daddy taught me that real estate was belly to belly.. of course this was pre internet pre fax and we were still using carbon paper which I am sure half of BP does not know what that is.

but if the folks are there that's a win..  you establish reporte and close the deal before other investors get to them.  

Account Closed You're fine talking them before the tax lien auction. Check the state statutes to see if you can talk to them after you own the lien. In Florida (you mentioned you recently bought FL liens) - you are not allowed to talk, contact or have an agent of yours make contact if you own the lien. Other investors can contact them, and many do once a tax lien has been sold on a property - but the actual tax lien/certificate holder in Florida can not contact the owner per the statutes.

Account Closed  -I definitely try to have a conversation with them and see if I can help them.  No one wants to lose their home.  They just don't know what to do to help themselves.  You can use it an opportunity to scoop the property up for cheaper than it may go for at the tax sale

All these responses definitely make sense if I was looking to buy-but I’m really just interested in the lien for the penalty and interest investment, not necessarily to eventually own the property.

Originally posted by @Jerry K. :

@Account Closed You're fine talking them before the tax lien auction. Check the state statutes to see if you can talk to them after you own the lien. In Florida (you mentioned you recently bought FL liens) - you are not allowed to talk, contact or have an agent of yours make contact if you own the lien. Other investors can contact them, and many do once a tax lien has been sold on a property - but the actual tax lien/certificate holder in Florida can not contact the owner per the statutes.

 that's a good pearl to know..  what is the punishment if you do in FLA.. can they take your tax lien away ??  

@Jay Hinrichs Good question that I never looked up - until you just asked. This is from the statute "197.432 Sale of tax certificates for unpaid taxes" See section (14):

(13) The holder of a tax certificate may not directly, through an agent, or otherwise initiate contact with the owner of property upon which he or she holds a tax certificate to encourage or demand payment until 2 years after April 1 of the year of issuance of the tax certificate.

(14) Any holder of a tax certificate who, prior to the date 2 years after April 1 of the year of issuance of the tax certificate, initiates, or whose agent initiates, contact with the property owner upon which he or she holds a certificate encouraging or demanding payment may be barred by the tax collector from bidding at a tax certificate sale. Unfair or deceptive contact by the holder of a tax certificate to a property owner to obtain payment is an unfair and deceptive trade practice, as referenced in s. 501.204(1), regardless of whether the tax certificate is redeemed. Such unfair or deceptive contact is actionable under ss. 501.2075-501.211. If the property owner later redeems the certificate in reliance on the deceptive or unfair practice, the unfair or deceptive contact is actionable under applicable laws prohibiting fraud.

501.2075 says that the civil penalty for violating: ...is liable for a civil penalty of not more than $10,000 for each such violation. Willful violations occur when the person knew or should have known that his or her conduct was unfair or deceptive or prohibited by rule. This civil penalty may be recovered in any action brought under this part by the enforcing authority; or the enforcing authority may terminate any investigation or action upon agreement by the person, firm, corporation, association, or entity, or the agent or employee of the foregoing, to pay a stipulated civil penalty. The department or the court may waive any such civil penalty if the person, firm, corporation, association, or entity, or the agent or employee of the foregoing, has previously made full restitution or reimbursement or has paid actual damages to the consumers or governmental entities who have been injured by the unlawful act or practice or rule violation. If civil penalties are assessed in any litigation, the enforcing authority is entitled to reasonable attorney’s fees and costs. A civil penalty so collected shall accrue to the state and shall be deposited as received into the General Revenue Fund unallocated.

501.211 says:  Other individual remedies.—

(1) Without regard to any other remedy or relief to which a person is entitled, anyone aggrieved by a violation of this part may bring an action to obtain a declaratory judgment that an act or practice violates this part and to enjoin a person who has violated, is violating, or is otherwise likely to violate this part.

(2) In any action brought by a person who has suffered a loss as a result of a violation of this part, such person may recover actual damages, plus attorney’s fees and court costs as provided in s. 501.2105. However, damages, fees, or costs are not recoverable under this section against a retailer who has, in good faith, engaged in the dissemination of claims of a manufacturer or wholesaler without actual knowledge that it violated this part.

(3) In any action brought under this section, upon motion of the party against whom such action is filed alleging that the action is frivolous, without legal or factual merit, or brought for the purpose of harassment, the court may, after hearing evidence as to the necessity therefor, require the party instituting the action to post a bond in the amount which the court finds reasonable to indemnify the defendant for any damages incurred, including reasonable attorney’s fees. This subsection shall not apply to any action initiated by the enforcing authority.

<<<<For a State with no rules on contacting the owner>>>>

If I were interested in getting the property, I would not be loitering around the property for any reason.  If I go buy a lien property, its quick.  If contact was made with the people living there (and it has happened to me) I just ask if they own or are renting the property.  Depending on their response to that question, I reveal who I am or I pretend I'm just scouting the neighborhood for deals.  If they are renting I say who I am.   If they are the owners I play dumb.  Plenty of explanation behind that if you need me to elaborate lmk.

An Lam, Last year while looking at tax liens, I saw what I thought was a vacant property so I looked in the window. A lady was looking right back at me. She came to the door and it was kind of awkward at first. I explained why I was looking. She was a relative of the owner and wanted to know the details so she could relay the info. 

As I was getting in the car I realized I was looking at the wrong house. It was doubly awkward telling her to forget everything I said.

we were still using carbon paper

@Jay Hinrichs you are "carbon dating" yourself  :-)

@Ned Carey that’s hilarious!

Too funny, I sure the brightened your day!!!

Account Closed Follow up. So today I am out scoping properties. I see what looks like either a formerly renovated property that now looks pretty rough; or a rehab that simply got stalled and never finished.  I get out of the car to see if I can see in a window. No luck. 

I just decided to try the storm door and it was unlocked. The door itself looked like maybe it had been kicked in. So I tried the knob. Sure enough it was unlocked.  I am always amazed when I try doors on vacant houses and the door is unlocked. 

Of course you may have already figured, it wasn't vacant. I see a big screen TV that was on. So I shut the door, jumped in the car and told my driver to take off. But not before the occupant opened the door to see what happened.  I just said "sorry I thought it was a vacant house"

@ned carey 

Next thing you know that Lien will get paid off! lol. Funny how a house can be dilapidated yet there's always a huge screen tv!