Re: trust - Posted by TeddyB_SC
Posted by TeddyB_SC on October 21, 2005 at 15:02:29:
Doesn’t matter where they are at.
The thing that most tax sale investors like about mobile homes is the ability to collect rent. You get 1/12th of the starting bid in rent each month, which HAS to be paid (along with the taxes,interest)to the Treasurer before the home can be redeemed back by the owner. This is on top of the interest, which is 3% from day 1 to month 3, 6% from months 4-6, 9% from months 7-9, and 12% from month 10 until the end of the redemption period, at which time the home goes to the investor.
The amount of interest collected can not exceed the opening bid, which is the back taxes, plus the upcoming years taxes. Because of the rent, investors can get a larger return on their money from bidding on mobile homes instead of land. Of course if a property was going to go through the entire 12 months and get awarded to the investor, most would prefer that it be real property, not mobile homes.
A simple example is this: Opening bid is $600. For land that is redeemed in the 12th month, you get your $600 back, plus $72 in interest. For a mobile home, you get your $600 back, plus $72 interest, plus $600 in rent. That’s $72 for land vs. $672 for a mobile. That is why they go fast at the tax sale here.
One thing that some people are afraid of is “what happens after the 12-month period is up and I go to get the home and it has been moved.” In my county the Treasurer refunds your bid(no interest or rent) or if you are able to track the home down like one investor did(3 counties and 100 miles away),you can take possession of it then. Same goes if someone burned it down to the ground, refund of bid, no interest or rent. Not sure what other counties do.
JP, here is another cool thing. If no one bids on the property at the tax sale, it goes to the FLC, which is the Forfeited Land Comission(the county). If it stays there for the entire year, they try to re-sell it at the next years sale.
But, anyone can go in and look at the FLC book. An investor can go in an at anytime and pay the opening bid and assume the county’s position. What that means is, you can go in during month 11 or 12, pay the opening bid and then only wait 30/60 days or less for the right of redemption to expire.