All Forum Posts by: Jim Wineinger

There are many who do this sort of thing. Preforeclosure. But just keep in mind that unless the property goes through the tax foreclosure process then any and all liens against the property still are existant and in full force.

You still can find good deals this way the same as finding any distressed homeowner who will accept a lot less for his property than it is worth but you will still have to deal with any legal lien claims which could kill the deal.

And then you will find those that did not realize that they were the actual owners and you will be alerting them to pay the taxes so as to keep the property.

There is a myriad of circumstances you could run into, bad as well as good.

These are required (by most states laws) to be published at least XXX amount of time before the sale.

Some Counties will not allow you to put your name on any kind mailing list.

My question here is has anyone tried to compile a list of the local "legal" newspapers that these sales are advertised in?

Since most papers are now on line it seems that this would be an easy way to quickly get any list quicker than having it mailed to you or going down to the courthouse and getting it from whomever.

Dan, I have been dealing with the tax sales for a while now. I would be interested in some of the information that you speak of in pre-auction deals. Please send me a colleague request so that I can send you my personal contact information.

But I do have one main concern with this system as logic would seem to say to me. In most tax auctions the governmental lien takes precedence over any and all other liens (except other governmental liens) and since a pre-auction deal would not make it to the auction then any and all liens would still exist and also have to be taken into account for.

Am I incorrect in my assumptions here?

I am also bringing this thread back to life because a lot of tax sales seem to begin in June and advertising is required in the "legal" paper of the county usually 3 weeks before the sale. Therefore those tax sale opportunities will be popping up right and left for those that are interested.

It would also mean that any pre-auction sales would have to be identified and moved upon quickly.

I'll bet he loved those termites!!!!!!!!!!!!!! :wink:

There are some owners that owner finance the home just to get the interest that the banks would get if they let the buyers use conventional financing. And that owner financing is a loan in your name just as soon as the owner financing papers are registered at the county level. It will usually then be picked up by those credit bureaus even if the owner does no report directly to one of the bureaus. This would leave the owner in 1st position lien and make it harder for you to get a second lien as a HELOC or other mortgage.

You would propable have to go the route of HML or private financing for the rehab.

And that chris brings into play one of the downfalls of the "kids". And reminds me of a unit which had separate utilities, but for some reason the baseboard floor heaters were all ran off the main unit's meter. So you will want someone to verify that the electric was properly split while you are doing those repairs.

If you are going to fix and hold you may find a lot of willing tennants from your local fast food chains. They are usually populated with employees who are ready for their first place. If the rent per unit is reasonable you could land long-term tennants who will almost do anything to be able to keep their first place away from the parents.

And they do not expect a whole lot of amenities most of the time.

DTI can affect your credit not in the sense that it can change your score but it used by the person (bank) pulling your credit to determine the risk of loaning you what you have requested.

As far as mortgages or other types of loans go, others may be able to describe exactly how it works, but the score is somehow determined upon a well rounded credit history. There are different types of credit. Credit cards, Bank loans. Car loans. Mortgages. Lines or credit, ect.

How you manage each area of your credit is factored into the score. If you do not have any history at all in one area or type of credit it can hurt you just as if you having no credit at all can hurt you.

Go to one of the credit bureau's websites and read up on how your credit is determined and it will give you the basics and others will chime in here to correct any mis statements that might been made.

I can tell you for a fact that every "new loan" or "increase in credit line" will hurt your credit score by about 10 points.

I have a HELOC that was granted on a house that I am rehabing. I purchased free and clear knowing that it would require new roof, ect. I have flipped other such properties to rehabbers and decided to do this one myself.

Estimated repairs at 15k and got a contractor to estimate while I secured the HELOC. The results from the Heloc came in and was granted at 30k. To my suprise the repair estimate was 36k and I had to increase the HELOC. Only a month later and this was the only other hit on my record and it did lower that score by 10 points. But the bank did say that after a month or two of payments the score would rebound by more than that 10 points because of those payments which would end up as another type of loan on my report.

Each hit on your record does affect you. I do not care about who testifies to what is supposed to be what and do what. Real life situations have proven otherwise by too many people.