All Forum Posts by: Baraa Yassin

@François DesCotes

I have been attending dallas county sheriff sale for a while still consider myself as a beginner...few thoughts wanted to share here.

Most propably the HOA went for sale under constable sale not sheriff...I know its the same auction same place but usually different guy announce it in dallas they start first thing before the start with the ones behind taxes.

Most propably whoever bought the HOA is responsible for the mortgage also...I have read before sometimes the HOA is superior to 1st mortgage but not sure if that applies here in TX.

tax sale is good for rentals in my openion because of the redemption period 6months-2 years...keep in mind even if the redemption right passed most of the title companies wont give full insurance up to 2 years since the date the deed recorded...because it was bought at the auction and they are questioning if somebody decided to fight the sale (all parties were notified, proper notices sent...etc)

Having said that buying/getting the redemption right from the former owners would make you free of all mentioned difficulties and you can sell immediatly no wait! What makes it hard is most of these properties are for many heirs and hard to track/convience all to sign their redemption right (some they even dont know what is the redemption right)

Keep in mind if you got one and decided to rent you need to have the very basic rehab in case someone redeems besides that you need to have it rented on month to month basis for the same reason.

Always check and do your due deligance ahead...not all liens will be wiped out (ex: labor liens), not all years taxes included in what you are buying, be prepared to evict the former owner if you couldnt make cash for keys deal with them...eviction could take short or very long time all depends if appealed and that totally different story!

Hope that helps...Good Luck.

***Not giving any legal advise here always check with an attorney***

@Ahmed Nijim

if they tried to call the police mostly they are not going to negotiate cash for keys deal & not willing to leave...once they recognize there is an attorney involved they might to.

If I were you I would never make any contact with them in any way...get an attorney to handle it properly...here in Texas there are many rules have to follow when giving the 3-days notice to vacate...cant just stick it on the door and thats it...Imagine if there is a screen door my attorney told me have to stick it from inside facing the main entrance door besides all of that to make sure they receive the notice had to have it sent with certified mail & regular mail...not mentioing how careful to be about what to write in that letter any mistake could be used against you if they wanted to fight the eviction.

Have done both eviction and cash for keys here all depends on the first impression I get from the former owners.

Cash deal was accompanied with short term lease for the period I gave them to leave waving any rights they might have to fight the posession...all docs were notorized.

Hope that helps

*Not giving any legal advice here.

@Aaron Hoak

Beside others valuable advises I would try to increase the buyer agent comission and add a bonuse instead of dropping the price...surely will get buyer agents more motivated and you will get an offer soon...also could saves you money as compared to dropping the price again giving indication that there is something wrong or being desperate to sell infront of the buyers.

Good Luck

@Eamonn McElroy

Thank you for the valuable information...I really appreciate your help.

@Kalen Mills

Sent!

@Kalen Mills

I would definitely talk to an experienced attorney if you think its worth all the headache...otherwise I  would walk away and buy from the sheriff auction directly for less price and less headache at least I know that I'm dealing with the county/city..etc. and no difference in the redemption.

I know a good attorney in Dallas she is very familiar to these sales let me know if you need her info.

Good Luck

@Kalen Mills

I tried many title companies most of them are not famiiar with the sheriff foreclosure properties they open title etc once it reaches the underwriter (when they issue the commitment) you find out about redemption and other related things.

As I know (im not giving legal advice here coz im not an attorney) all of the properties sold at sheriff due to property tax behind they are subject to the redemption right 2 years for homestead and 6 months for non-homestead...yet still you will see the title company add a language to schedule C about not insuring if somebody had an interest in the property decided to challenge the sale (even if the 6 months redemption expired). The challenge usually about proper notices sent and all parties were notified mostly.

In your case ovation services acted as a collector for a lender to pay the property taxes on behalf of the former owner...the former owner didnt pay them back, they foreclosed on it and they were the highest bidder at the auction.

Looks like the former owner still have the right to redeem.

Was the property on mls and you made an offer through an agent? Did they mention anything about this in their listing? Or promised clear title?

If they promised you clear title then you have the rihght to cancel since its not.

Not sure if they gana end up giving you clear title how will it work with another title company when you sell! The new underwriter may refuse for the same reason.

Sorry to tell you that but be prepared to stuck with it for 2 years unless you get the former owner to sign you their redemption right through a DEED that would put you in better position.

Hi BP,

I have a friend of mine bought a land through tax foreclosure auction...he bought it without doing any due diligence ahead of time, anyways he found out its a very small lot and worth nothing if he is trying to sell.

The appraisal value is $12k and he paid a bit less but no body would buy such lot on the market...somebody told him to donate the land to the city or the county or some sort of organization that helps people and file it on his tax return as deduction. 

my questions are: 

1- Any suggestions who to target to donate the land 

2- If he donated the land can he file it as a loss or deduct it from his tax refund at the end of the year...he is entitled to pay some capital gain taxes on other properties he sold so this deduction will definitely help.

3- If point 2 is doable will he be able to file based on the appraisal value $12k?

Any suggestion is highly appreciated. 

@Michael Biggs

No luck yet...can you help if you know other title companies you think I should try.

Thanks

@Wayne Brooks

Thats right...there concern is the validity of sale and proper notices beforw the sale..totally agree...I will try because the seller is willing to sign any document giving the buyer or the title company garantee if someone comes back and redeem the seller is willing to pay back the title cost and refund the buyer.

@ Jay Hinrichs

@Michael Biggs

Thank you guys for your input