RealEstateAnswer
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This RealEstateAnswer page has been built to actually answer your questions. While I can not answer every question I can and will be posting new and interesting FAQ here periodically that pertain to tax deeds, tax liens, tax sales, tax certificates, auctions, foreclosures. If you need a RealEstateAnswer, let me know, submit below.
Tax Deeds Broward/Palm Beach
RealEstateAnswer You can find links or info to all county tax deed auctions in Florida at my web site page just locate your county on the map and click. For Palm Beach County, specifically, they have a very nice online system so you can access the tax deed files, so you won't have to make an extra trip to view them. The site access for the tax deed sales and file viewing is at http://www.pbcountyclerk.com/oris/records_home.html Click on Tax Deeds, Accept, sale Date, enter in todays date, enter. When you locate a tax deed that is ready for sale click on view, when the page loads, click on other documents to bring up the owners and encumbrance report so you can view all the documents of liens and owners. If the file is unavailable it usually means that you are to far out from the date of auction and the document has not yet been prepared. Many potential problems, if any, can be located in the file. For Broward, specifically, the Clerk of Courts has no direct link on their home page to the auction calendar or list, so see the legal ads in the Daily Business Review the page is at www.dailybusinessreview.com once the page loads click on Public Notices, then on Tax Deed Applications under Real Estate Info. You will need a subscription to gain access or pick up a copy of the Thursday edition locally. If I'm not mistaken Thursday is the day the ads for "Application of Tax Deed" are run, to make sure contact the Clerk's Office to verify. Most of your Broward County questions can be answered by seeing this page at the Clerks Site RealEstateAnswer from Clerk The Tax Deed Files can only be viewed online one week prior to the sale. PS-I received your message, thanks for the positive input for my site. I spoke to your husband, John, and will be calling you back shortly.
Mortgage Foreclosures Best foreclosure information I've found. I am interested in buying foreclosure property in Duval County. After following one of your tutorials in a different county, I used your info to find a property I am interested in. There were two mortgages recorded on the same day, which one is the first mortgage? Both mortgages are from the same bank, I don't want to make the mistake of bidding on a property only to find out later that it was the second mortgage foreclosing not the first. As you stated, I would be responsibe to pay off the first if the second is the one foreclosing.
RealEstateAnswer
New Jersey Tax Sale Info Hi James or Edna, I love your site. You give so much information, easily explained yet detailed with very helpful links for beginners like me. Thank you for taking the time to put this together! I do have one question, I live in Ca now but will be moving back to NJ in a few months. Are Tax Lien sales run the same in other states? Ok two questions lol, if not do you know of any other informative websites covering them for NJ?
RealEstateAnswer
Don't know much about NJ but this should give you a boost in the right direction:
Hope this helps, James
Tax Certificate Homestead Exempt
RealEstateAnswer If you have been following along with my tutorials you are also aware of the fact that this will impact very very few individuals. As example, Palm Beach County where in 2006 more than 30,000 certificates were sold yet fewer than 100 tax deeds were auctioned and sold in 2008 with only 1, if memory serves me, being a developed parcel. Remembering that a certificate has to be held for more than 22 months and can't exceed 84 months without making application, most applicants hold their certificates for as short a duration as possible. Further reducing the number of certificate buyers impacted, in your scenario, the home purchaser in most instances would have obtained the property by warranty deed with title insurance. Prior to title insurance issuance, a binder for title would have been prepared and disclosed the outstanding certificates. Before title insurance would have been issued the certificates would be redeemed. If the new owners were obtaining financing, a prerequisite of obtaining the mortgage would be redemption of the certificates outstanding. Regardless of the numbers impacted, an important fact was left out. The goal of the site is to disclose information, and you have brought a new piece forward. Thanks again for bringing this to my attention. Exempt Status Tax Deed Application Your site is outstanding - I love it! While the info I'm adding/suggesting does/would impact very few certificate holders it is a real possibility. The out-of-pocket and potential investment in redeeming HX certificates is worrisome. But, from my perspective the regulation/interpretation regarding "most current assessment" dictating the status of the deed application has the implicit potential to be a major problem with just about any certificate bought. Florida has a loooong history of unqualified sales and a savvey owner has a loophole here you could drive a Mack truck through. I wouldn't know how often this comes up but do know even in our little county (Madison) there's one this year. Basically this interpretation of "most current assessment" says to a certificate buyer "you may be buying a non-HX certificate but it's just your tough luch if the property goes HX before the end of 22 months." Example: #1. Unwitting bidder buys a certificate on a non-HX rental. Holds it 2 years. Goes to the clerk (or assessor) and learns - guess what - that property is now HX. All it takes if an owner is looking ahead and knows what's down the road, is for him to execute either a totally unqualified sale and/or hold his own mortgage sans all the usual good stuff of title searches, surveys, etc.. He's's now transfered to a buyer who can/did apply for HX. This scenario doesn't get the property owner "off the hook" but still $^&%&'s the certificate holder and may delay the deed application because of the stiff costs/investment. #2 Unwitting bidder buys a certificate on a vacant lot/parcel. Property owner sells lot for cash (again no title ins - not uncommon in rural FL). New owner puts a mobile on the lot and applies for HX. Whether he bought the mobile for cash or financed it -most MH dealers just require a deed and look no further - it really won't matter - again the certificate holder is )&))**. Have you followed the certificate auctions this year? The counties look to be in for a tough road as in the dozen or so auctions I've followed (most non-metro) sales have been absymal (and rates at the top - great for we buyers). Best & keep up the good work. Pat, thanks for your positive response and input, input is the backbone of growth for my site. Absolutely, it is a risk but I can say with certainty that in Citrus County there has been 5 homestead exempt properties sold at the tax deed auction and 7 in Marion over the past 6 years. While this doesn't absolve the fact that there may be others which aren't brought up for auction due to the cost, it is an indicator of the low numbers we are talking of since there were in essence tens of thousands of tax certificates issued over that time frame. There are typically a small percentage of homestead exempt certificates advertised for the tax certificate sale but these are usually redeemed quickly. In my opinion, there are few investors which have your knowledge base on this issue and even fewer home owners. I'm sure there are home owner out there which will use this as a loophole to deter certificate buyers but with considerable equity at stake it would not be wise to play with fire. The real problem would be if the property owner filed for bankruptcy after the application was made. OH NO, the certificate becomes unenforcable after your big lay out of funds and it is at the discretion of the trustee as to wheather the tax certificate is redeemed or a payment plan established for repayment of the taxes. I really don't know the full implications of such a scenario. I haven't seen or heard of this happening and the probability of this happening would be as likely as shooting yourself in the eye with a rubber band but I would like an outside opinion. Sometimes hearing a voice louder than your own is necessary and welcome. Off Point but interesting point I just thought of that you may enjoy. A few months back, I found a first year tax certificate being sold on ebay. Curious as I am, I researched and found that the face amount of the certificate was less than $70.00. The annual tax bill for the property was around $3,000.00 for a home which was homestead exempt. It seemed the owner shorted the tax collector and a certificate was issued for the balance owed. The ebay seller purchased the certificate from the list of county held certificates, as memory serves, and paid the nominal transfer fee and costs. This ebay seller set forth a beautifully illustrated picture of property ownership on ebay. It was a nice rosy picture indeed and raked in over $1,200 for the certificate with a $195 transfer fee. The ebay purchaser will not know the impact of the purchase for another 18 months from time of purchase. I have also been disturbed by the number of vacant land properties auctioned on this site which are conveyed by a special warranty deed due to seller's interest being a tax deed. One such property had a $87,000 Federal lien. There could be some real issues for the buyer and we have met many tax deed auction purchasers who intend to sell their interest "the property" on ebay without clear title. If that weren't bad enough, I have looked at the recorded conveying special warranty deed and have found many are faulty in that no warranty of any means is offered due to the poor wording used in the conveying document. In an attempt to undo some of the wrong doing I have run ads of warning on ebay but fewer than 5 people looked at my last posting, while the above noted tax certificate seller received more than 40 bids. Back to point. The loophole effectively could deter tax deed applications from being made but will effect fewer than 1% of certificate holders, the other 99% of certifcates will constitute a very real and positive outcome for the certificate holder. I'm sure you are aware of this as you are yourself a tax certificate purchaser. Great time for tax certificate buyers indeed. With lower than expected turnout of potential bidders, it definitely makes 18% easier to achieve. Knowledge is power and thank you again for the wonderful points and information you have contributed. Good information is contagious, PASS IT ON!
Reader Response
Hi again James
Two counties I know of did well: GILCHRIST sold 93% (1089/1011) and SUWANEE sold 95% (3055/2893). Your reference to the problems (and potential these days) of bankruptcy affecting HX certificates is right on the mark. It would seem possible it could also affect corporate/developer-held vacant properties as part of their assett portfolio. The chances of a court either setting aside or reducing the interest on those certificates would seem quite good. On the other hand I'm not sure I believe the courts would protect the run-of -the-mill "investment" properties (or affect their certificates) such as second homes, rental properties, ag land, etc. I wish I could share better info with you on the bankruptcy issue but I, too, am short of info here. While I find a lot of reference to the problem I don't find a lot of explanation or detail and am no expert in bankruptcy law. Re EBay sales I believe the seller you refer to is still at it. While I look at RE there it's rare to find anything but dogs and yes, a lot of scammers. Unfortunately EB doesn't hold a candle now to it's "good old days". You use to be able to sell easily, at good returns and reasonable overhead costs. I moved a lot of antiques back then. RealEstate AnswerJames Response Pat, thanks again excellent points. With our combined expertise on this subject matter, we still don't have all the answers. No one really does regardless of their blog posts. I wish my knowledge of this small but riveting point could be better expanded. I ask of my Reader's who are following this page, have you owned a tax certificate against a homestead exempt property whose owners filed for bankruptcy? If so, please let me know. I never disclose or use personal information for a use other than its intended use, so you won't be getting follow up e-mails from me trying to sell you something. I'm trying to save up my flashy banner ad things and large font hype for later use.
Homestead Exemption Status Certificates Good quality site with excellent content. This email is in response to the question posted on your emial page. I have been investing in tax certificates in South Florida for the better part of 20 years and I have never had a property on which I was holding the certificate convert from non exempt to homestead exempt status AND had possession of the certificate for the two years required to apply for the tax deed AND have the misfortune of owners filing for bankruptcy after application and before auction. This feasibly could happen but the probability of it happening is remote. In my opinion if this were to happen, A. The certificate would be unenforceable upon owners filing of bankruptcy, as you suggest B. The Clerk of Courts would return your application cost including the 1/2 of assessed value because the property could not be auctioned C. You would be in ownership of the other outstanding certificates which are also unenforceable D. It would be at the discretion of the bankruptcy court as to the outcome of the certificates. I think the courts would exercise a payoff plan.
RealEstateAnswer Your information is a welcome addition to our efforts. Though this a remote possibility, it is the intricacies which intrigue me.
Tax Certificates, Tax Deed Applications, Bankruptcy HEY JAMES, I am a certificate buyer in Broward and have been for about 20 years. I noticed that you seem to be of the view that a bankruptcy removes a tax certificate from a propeerty. This is not the experience I have had. I have filed proof of claims on a few Bankruptcy's and have been treated as a secured party and included in the plan for complete payment of the taxes as well as the interest bid. Usually my work is done before the trustee, but on a couple of occasions I have had to go before the Judge and my position has been upheld. On the matter of Homestead exempt property. Values have starteed to decrease in Broward and the 50% minimum bid is a burden but the property is usually of a higher value. I am presently in a minor dispute with the Broward County Rev Collector as to what year the 50% applies and I have a request with the Florida DOR for a binding opinion on what constitutes "current year tax roll". I'll let you know what the outcome is.
RealEstateAnswer Reader Response
Hello again James,
The tax certificate holder does NOT have to post one-half the homestead value at the time of applying for a tax deed . The money would only be due if the certificate was not redeemed before the sale and there were no bidders at the sale and the tax certificate holder was left as the only bidder. Consequently all the chatter on the web site about bankruptcy is not applicable in this case. The tax certificate holder also has the option of refusing to pay the additional funds and the property then has to be redone in the next scheduled sale. If the P.A. in the County where the certificate is purchased has been doing his or her job then you would have obtained a property with some type of a residence for ½ the assessed value which should be less than half the market value as most P.A.S reduce market value 10 to15% to cover “cost of sale” On top of that it is very unlikely that some poor tax payer is going to spend money on a trailer live in it and file a hx so that he won’t loose his investment to a tax certificate.
RealEstateAnswerJames Response RealEstateAnswerJames Follow Up Through conversation with my contacts at varying county offices, examination of the DOR Ruling 12D-13.063, examination of F.S. Chapter 197 and specifically statute 197.502 I have concluded the following: Final Opinion of the Florida Department of Resources will be upheld, links for DOR opinion provided at bottom. I give great weight to my county sources as they have provided information to my family for many years, and they are in the know, enforcing and carrying out the rulings of the DOR. In the past, current, but not so in the future: The posting of the 1/2 of assessed value for homestead exempt properties, at the time of tax deed application, is at the discretion of the counties. Counties may require posting of the funds by the certificate holder at time of application. Other counties do not, but instead add this at the time of auction whereby it is added to the opening bid at the tax deed sale. If the property receives no bids at the tax deed sale and the county did not require prior payment of the 1/2 of assessed value, the certificate holder will then be required to post that payment and subsequently be issued the tax deed or the property may be entered into the List of Lands Available For Taxes or the property may be reauctioned at the direction of the certificate holder. If after the second auctioning of the tax deed, no bid is received higher than the opening bid, and the certificate holder further refuses to pay the 1/2 assessment the property is entered onto the List of Lands. If a winning bid is received at the time of tax deed auction the winning bidder, upon consummation of the transaction, would be responsible for the payment of the 1/2 of assessed value, if, if the county does not require it pre auction of the certificate holder. NOTE Interesting point, if the property is entered onto the list of lands, the tax exempt status is voided. Therefore, theoretically, you could pay less for the property on the list of lands than at tax deed auction, if you waited until the following tax year to purchase the tax deed. You wouldn't be required to pay the 1/2 assessment due to the fact that the following years "current tax roll" would not include the homestead exempt status. "The authorized determination and discretion inherited by the county is the result of indeterminate language within Florida Statute 197, as to the counties fiduciary responsibility in collection of funds as required of this department and in protecting this counties citizens." I have been informed that there have been numerous conversations between the DOR, Tax Collectors, Clerk's and the counties attorney's in regards to the point we are discussing here.
TAXATION AND FINANCE Chapter 197 F.S. TAX COLLECTIONS, SALES, AND LIENS and specifically referenced in 197.502 Application for obtaining tax deed by holder of tax sale certificate; fees. DOR Ruling 12D-13.063, See Final Adopted Rule A special thanks to Clayton, Michelle, Tyler, Hurley, Jose, Mr. Gonzalez and Pat for your input and time. Jacob V, war vetran and former investment fund executor, good luck best wishes and thank you. Input through phone conversation, In 1987 the Franklin County Tax Collector required me to pay the 1/2 assessment, I owned the tax lien. The property sold at the deed sale so I was issued a check for my investment plus the interest earned. The information found here is my opinion and is not to be interpreted or construed as legal or professional advice. No legal or professional advice is being given and use of this information is at readers own risk. It is advised that those considering this investment should seek qualified legal and professional services. New Tax Deed Investor Takes Flight |
