tax foreclosure auctions?


#1

Did anyone attend the webinar last night? Does anyone know if this works. The concept is to hunt down those former owners who are due money by the government after their house was auctioned off. You would charge a finders fee to get their money.


#2

Sounds similar to a thing that was years ago in the pre-due on sale days of FHA mortgages.

Seminar said you could hunt down the people the government owed $$ to and they would pay you a finder fee.

This was based on the fact that the old, old FHA mortages charged you an insurance fee over and above what was normal and if you sold the house and it was paid off then you might be entitled to some $$ back.

Did not listen to the one last night but sounds the same to me.


#3

It works and there are many out there involved in the tax overages/surplus business.
As one of the biggest tax deed buyer groups in Florida we use a particular form of funds recovery directly associated with sour main line of business.
Every time we buy a property, we inform the owner of potential overages due him and get the required set of paperwork signed. With this, we are able to get any overages back to him for a fee.
The allowable fee that you can charge varies by state, not all allow it.
Many states post overages online and the information is readily available most of the time.
Heavy competition makes it difficult making money doing surplus fund recovery alone unless you can find a particular niche.

Alexander Burnett


#4

Soumnds interesting, EXCEPT FL is a TAX LIEN state,NOT,a tax deed state.

And: if successful at th tax lien acutin and redemption period you must then put the property up for foreclosure.


#5

There is no such thing as both a tax lien and tax deed state.

At a tax liens sale you get NO ownership rights as a result of your purchase of the lien.

At a tax deed state you get IMMEDIATE rights of ownership subject only to the RIGHTS of Redemption.

Check your state statutes, In FL you buy the line and if it matures to you then you have to foreclose on it to get title and anyone who desires can bid at the foreclosure.


#6

OK so Florida IS a TAX LIEN state because, by statute, counties will sell tax certificates to investors at Tax Certificate sales.

Florida IS also considered a TAX DEED state because, also by virtue of statute, counties will sell the property at Tax Deed auction unless all delinquent property taxes, interest and fees are paid.

Once the Clerk accepts the proceeds from the sale of the property, THERE IS NO RIGHT OF REDEMPTION.

There is no such thing as the lien “maturing to you”.
Any lien holder has the right to bring the property to auction within 7 years but not before the statutory 24-month statutory period from the time the lien was sold at auction.

The certificate holder will automatically get equitable title to the property if no other bids are received at tax deed auction (Sold to Certificate Holder).


#7

You should read Jones vs Flowers, SCOTUS…you CANNOT get equitable title unless and until DUE PROCESS is done.

This particular case took 7 years and went BACK to the owner…and…it being a SCOTUS case applies to all.


#8

The due process issue has nothing to do with my answer to your comments regarding Florida not being a Tax Deed state and your previous comment about “there is no such thing as a tax lien state and a tax deed state”

And just to clarify another inaccurate comment, you DO get equitable title at a tax deed auction in Florida subject to the tax deed.
Meaning that either the statutory time period expires (4 years), or you initiate a quiet title action to clear title.
Either way, any and all claims are forever extinguished.

Lack of due process would only be raised in a claim by a lienholder or anyone who might have had an interest in the property when it was sold at a tax deed auction.
Unless this claim was initiated before the statutory time period, or any objection was received by the court before the final judgment in a quiet title case, it would have no merit and be disregarded.


#9

Alexander, did you read Jones vs Flowers, S C O T U S. I suspect not.

If DUE PROCESS has nothing to do with it, PLEASE explain for me and the others here why it took SEVEN years, went all the way to the SCOTUS, (Read the article by the FL Bar in the Sentinel) and went back to the original owner.

Not tryng to give you a difficult time, just trying to get you to post accurate facts here as there are lots of readers and we all need to keep our information correct.

If you need them I will be happy to end you copies of the FL Statutes with instructions as to how to read them.


#10

And just to clarify another inaccurate comment, you DO get equitable title at a tax deed auction in Florida subject to the tax deed.

What do you mean “Subject to the tax deed”

Meaning that either the statutory time period expires (4 years), or you initiate a quiet title action to clear title.

In either case, if due process is NOT DONE it can be overturned.

Either way, any and all claims are forever extinguished.

NOT TRUE. Every state has quiet title actions that will give you “clear” title from the state.

Last time I checked FEDERAL LAW superseded state law.

This was done in Jones vs Flowere. it went chancery court, superior court, appeals court, state supreme court…ALL said it was fine.

It was apealed to the SCOTUS and they said NO, due process has to be done.

Not an attorney and do not pracatice one on TV, just a LONG time tax lien investor…who FIRMLY believes in do your due diligence and be ACCURATE in your posts.

Others depend on you.


#11

Bill,

You really need to read my answer again.

"The due process issue has nothing to do with my answer to your comments regarding Florida not being a Tax Deed state and your previous comment about “there is no such thing as a tax lien state and a tax deed state”


#12

Alex, If you are referring to the fact that if a tax lien fails to sell and the property “ESCHEATS” to the state.

The state will then hold it for the required period and sell it…NOT as a tax deed but as a state owned property.

Virtually every state will do that.

TRUE TAX DEED states such as Texas, CA and WA will give you a deed when the hammer falls and you win the auction.

And, you really need to read Jones vs Flowers…there was a good article in the Sentinel by the FL Bar about it.

Due Process is an absolute necessity. The states do not look favorablily at taking a property for the simple mistake of not paying taxes.

If Due Process was NOT a necessity, then the S C O T U S would not have rulled so.

If you take tax deed title to a property and the former owner challenges it in court and cites Jones vs Flowers…they will win.

I can list you propeties that have been posted,with the notice, served by registerd mail, served by deputy sheriff, owner admitted in court (Quiet Title) that he received all of this…and…the courts STILL gave it back to them.

Have had thousand of properties over the course of doing this business and the most common defense in court…“BUT, You Honor…I was not properly served.”

It is inded an interesting business, one in which you can get burned easily and must do due diligence to win.

Have thoroughly enjoyed the discussion.

Good Luck,

Bill H


#13

Bill,

looks like you just did not understand my answers. Just read the post carefully from the beginning, maybe you’ll get it.

Glad you enjoyed the discussion.

Alexander Burnett
theRealMentor
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