More than 200,000 Home Owners Get Bad News in California

237,166 Home Owners Behind on Taxes in One California County

CBS News in Los Angeles, California is reporting that 237,166 property owners will be receiving property tax delinquent notices for the 2008-09 tax year. Property Taxes go into default on July 1st in Los Angeles County. After July 1st, property owners will be charged a penalty of 1.5 percent per month until the taxes are paid. California is a Tax Deed state so the opportunity to invest in the tax liens on those properties does not exist however you can buy the property at the Tax Sale. After 5 years of unpaid taxes the property can be sold at a Tax Auction. Commercial Property can be sold at auction after 3 years. LA County will be selling their tax defaulted properties on August 17th and 18th. The properties that will be auctioned are only listed in a book that you must purchase. Contact us at for more information on this sale.
Originally published in Blog on 6/10/2009

Tax Lien Cert Sale, It’s not ‘Ovah’! — Make Money from the Left Overs

Here’s a little know tip for those of you buying properties at the Tax Lien Certificate sale in Florida.

Certificates that don’t sell at the auction become the property of the County and are offered for public purchase at a time and place announced AFTER the auction ends. The unsold certificates carry an 18% interest rate per Florida Statute beginning on the date the certificate was struck off to the County.

In Florida, the Tax Certificate sales all have to end by June 1. After June 1, the counties are then forced to sell the certificates “over the counter” at 18% because they did not sell and they are now the holders of those certificates.

Just make sure you’d be happy with the certificates you buy if they worst case scenario happens and you end up owning it… Buyer Beware.

Originally published in Blog on 6/2/2009

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

House sells for $35,000 in Brevard County Tax Deed Auction

On Thursday, I went to check out the Brevard County Tax Deed sale for the first time. It was an early day, the sale started at 8:30am, but the drive out to Titusville was pretty quick coming from Orlando. A couple of students met me there. They were surpised to see that although there were about 20-25 people present for the sale, only about 5 people bid on the properties. About 10 properties were auctioned off ( it started with about 30 properties, most were redeemed). Only 4 other them sold, the other 6 had NO BIDS. Which means it goes to the Certificate holder.

One of the properties that sold was a house, we wil be posting the video of that home. It sold for $35,000. It was in a relatively nice neighborhood. I will be writing about that sale in the March Tax Deed Newsletter.

Originally Published in the Blog on 2/23/2009

$10,000 Tax Deed House

I was so inspired to hear the excitement over the phone as one of my Tax Deed students told me about her first Tax Deed purchase. She purchased the home yesterday for $10,000. Here is a link to some pictures of this 2 bedroom 1 bathroom house. It’s a block home in Central Florida.

More Pictures, click here: Student Deal

My student told me the only reason she was able to get the deal was because the clerk went through the bids for the sale very quickly. Instead of doing the usual, ‘going once, going twice, sold.’ The clerk said, ‘any more bids, sold’ and that was it. My student said someone tried to protest because they didn’t get there bid in, but the clerk said she is not required to do the whole, ‘going once, going twice, sold.’ Great job on that deal. $10,000 on a block house! Look at the pictures and you will see it is ready for a tenant. The kitchen cabinets are new.

Later I will tell you about another deal, a partner and I just got for $21,000. That is also a block house. That house is occupied. Stay tuned for more.

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