All Forum Posts by: Michael Oldehoff

Great advise, thanks for getting back to me so quickly.

I also saw liens that have been paid however still have a small balance owed,  Would paying the leftover amount for that year gain anything.  2013 paid $600 due $35,  2014 paid $600 due $43

Lynda

In Az it is bid down on the percentage of interest and whoever takes the least amount of interest gets the tax lien.  A usual amount for a tax lien property with value will be around 3-4% or less. 

@JR Haseloff It's interesting. When I re-read the AZ statutes two weeks ago, I too saw that new item "B" about counties with more than 3,000,000 people being allowed to pay sub-taxes at the same rate on liens bought from 2014 on (with no previous tax liens outstanding) and getting the same rate as the first lien. This only applies to Maricopa (Phoenix) since no other county in AZ is even over a 1 million in population.

I don't invest in Maricopa so I have to ask my Maricopa tax lien investors on BP how is this different from previous years? Were investors never allowed to buy the sub-taxes in the past? I do know they had separate liens for each year, but this specific statute seems to indicate an investor never was allowed to pay the sub-taxes in the past.

 Another reason you might be OK with 2-4% on a tax lien certificate:

I won a TLC in Yavapai County in Feb, 2013 which got bid down to 4%.  In June, 2013 I have the opportunity to buy the subsequent taxes without any 'bid-down' competition.  Those taxes accrue at 18%.  I bought the subsequent taxes again June, 2014 and 2015.  

I intend to foreclose in February.  If I am paid out, I will get 1 years of taxes at 4% and two years of taxes at 18%.

Obviously, very, very few TLCs will ever get to foreclosure and while not all will make it to the second year,  the ability to pay off subsequent taxes without competition can increase possibility of returns.

JR

 I wouldn't even do the initial noticing myself. A full title search includes much more than just a look at the land records, you need to search estates and death notices, heirs, bankruptcy search, and judgement search. 

My tax sale attorney has other non tax sale attorneys as clients. These attorneys sent out notices and did them wrong. He had to redo them.  A bankruptcy of just one defendatnt holds up prosecution of the entire case. All you have to do is miss one bankruptcy and your whole case is in the dumper. 

@Michael Oldehoff I'm with you on it not making sense, but that is how went down with my Pinal county lien foreclosure.  The attorney (Manoil) called me to say he got a check in the mail for his fees from the county.  So he looked it up and the owner had redeemed.  Maybe in Pinal the attorney files his fee with the foreclosure filing? Not sure, but I was not billed for any of the foreclosure fee and the attorney had his check from the county for his fees.

@Kim Gerred My apologies. @Michael Oldehoff is correct, you only have to notify the owners for the 30 day notice. 

Michael - A question to help clarify for me; are you referring to getting the owner to pay the attorney fees when you wrote "Always keep in mind that it is not always collectible. Having a judgement and getting paid are completely different issues." Or am I misinterpreting what you were referring to?

I have had only one AZ lien owner redeem after the foreclosure was opened (foreclosure opened after the 30 day notice past), and my attorney told me when the owner redeemed he had to pay the back taxes, interest and my attorney fees.  My attorney was paid by the county (Pinal) for my fees, so the owner could not redeem unless he paid those attorney fees to the county itself. There was no judgement involved to get him to pay the fees.  Maybe it's different county by county? Or am I way off to what you were referring?