Posted by IB (NJ) on February 09, 2004 at 17:12:19:
“Not to be unsympathetic, but everyone does know their taxes are due. What everyone doesn’t pay attention to are the consequences of not paying.”
Yes I agree with this. I’m just wondering if there are situations where someone thinks their mortgage payment includes their taxes only to find out (at the last minute OR when it’s too late) that it doesn’t.
Technically, (here in NJ) once the lien holder has the certificate for 2 years, he/she can start foreclosing. However, the foreclosure process can take an additional 1-3 years. This aspect is rarely discussed by the gurus selling their books and courses on the riches to be made in tax lien investing. Luckily we have Ben aka ‘Skater Boy’ (that name cracks me up) on our side.
Crazy Stuff-Where is YOUR tax bill being sent? - Posted by IB (NJ)
Posted by IB (NJ) on February 08, 2004 at 15:01:58:
I’m about to get under contract to purchase my first commercial property. It’s a 14-unit mixed use property of apartments and store fronts. The property cash flows really well and looks to be in good condition.
But the previous owners lost it to a tax foreclosure (I’m buying it from the holders of the foreclosed tax lien certificate). I was just over at the place a few days ago and the previous owners are still coming around and entering the building as if they don’t know they just lost it (they actually told me the place wasn’t for sale [?!] - it was official in Dec. 2003 as final judgment was entered on 12/5/03) After doing my research, it appears that the tax bill was being mailed to one of the vacant store fronts of the building and not the owners’ (husband and wife) home address. That means that likely, all court notices regarding the foreclosure were going to the same address. I’ve seen this before. I mail someone who’s investment property is headed to tax foreclosure. The owners will have the tax bills sent to the investment property where they USED to live. They move but never change the tax bill address. They make mortgage payments assuming the mortgage company is paying the tax bill. When I mail them the letter notifying of the tax foreclosure and my offer to buy the place, they call me surprised that they are about to lose the place.
I estimate the building is worth about $500k But (it looks like) these folks lost the property due to failure to change the tax bill address.
Has anyone run into similiar situations? Ben (NJ), I know you’ve talked about situations you deal with where the seller claimed to not know about the foreclosure. Have you come across situations like these? As you know, we invests in the same state but from different angles
Re: Crazy Stuff-Where is YOUR tax bill being sent? - Posted by Ben (NJ)
Posted by Ben (NJ) on February 08, 2004 at 18:53:17:
Where the tax bill goes is only minimally relevant, the NJ courts have held that “everyone is aware that they owe property taxes”. What is crucial however is the service of process, (ie the complaint and subsequent pleadings). If the owners were not served either personally or by publication, the foreclosure unit would reject the file, abstract companies would decline to issue a certificate of regularity and the plaintiff could not get title insurance. If I had a nickel for every defendant who claims “I knew nothing about this” I would star in a show called “The Apprentice”.
Re: Crazy Stuff-Where is YOUR tax bill being sent? - Posted by IB (NJ)
Posted by IB (NJ) on February 08, 2004 at 21:32:01:
“If the owners were not served either personally or by publication, the foreclosure unit would reject the file, abstract companies would decline to issue a certificate of regularity and the plaintiff could not get title insurance.”
So in a case like this, how would a defendant know that he was being foreclosed? How would the plaintiff know where to serve the complaint? Would the process have to rely solely on publication for servicing? I guess my question is, is it possible, in a situation like this, for someone to be foreclosed on for back taxes and not know it?
In this case, Crusader did the servicing so I would think that everything was done pretty throroughly.
Re: Crazy Stuff-Where is YOUR tax bill being sent? - Posted by Ben (NJ)
Posted by Ben (NJ) on February 09, 2004 at 04:46:26:
Even in a publication case, the rules require “diligent inquiry” to locate the defendant. Crusader is no fly by night outfit so chances are their foreclosure was done by the book. Email me privately and tell me the attorney’s name.
Re: Crazy Stuff-Where is YOUR tax bill being sent? - Posted by Kristine-CA
Posted by Kristine-CA on February 08, 2004 at 22:24:11:
IB(NJ): in some cases and places, regular mail will suffice as servicing.
Not to be unsympathetic, but everyone does know their taxes are due. What everyone doesn’t pay attention to are the consequences of not paying.
What I see where I am is that people who do not pay property taxes usually have other problems with property and/or finances. It’s not as if everything is going fine and then one day, omg, they foreclosed on us? Why?
How long can taxes go unpaid before the foreclosure process in NJ?
