Banks Not Immuned to Loosing Properties in Tax Deed Sales
I’ve noticed more and more properties with bank mortgages and even bank owned properties are going to the Tax Deed Auctions. Remember lenders have been foreclosing on homes at record numbers lately. Now it appears that some of these lenders can’t afford to pay the property taxes on all of those homes.
In February I went to a Tax Deed sale in Orange county. A county that I don’t usually expect to find any deals because of it’s popularity. Boy was I wrong. Someone bid on and won a house in Apopka that was currently in foreclosure. The Ownership and Encumbrance report showed that there were 2 bank mortgages on it, one of the mortgages had filed a Lis Pendens. A Lis Pendens is the beginning stages of a foreclosure. The bank was notified of the pending auction and they didn’t step up to pay the taxes. The property sold for $31,000! The bank mortgages were about $120,000.
I’ve seen actual bank owned properties go to Tax Deed sale as well. These lenders are letting some of these houses go to Tax Deed auction… creating an even more lucrative opportunity for investors who buy Tax Deeds and Tax Lien Certificates.
Has anyone else noticed this or anything interesting such as that?
Originally published in Blog on 2/23/2009