Posted by TeddyB_SC on October 24, 2005 at 10:26:13:
JP,
The rent is collected when the property is redeemed back by the owner or mortgage company. It accumulates each month. It is not something that gets collected every month. The money is collected by the Treasurer.
It MUST be paid with the back taxes and interest at the time of redemption, otherwise the Treasurer will not allow the property to be redeemed. If it is not redeemed of course, the investor gets the property.
TeddyB_SC
paying Taxes - Posted by Deek
Posted by Deek on October 19, 2005 at 21:15:58:
If I keep the title, and finance the loan for the buyer, how do I get them to pay the taxes? Title is in my name.
Deek
trust - Posted by Steve-WA
Posted by Steve-WA on October 20, 2005 at 12:57:10:
and if the county is going to step in at any time in the note’s future and say “PAY THE TAX BILL or lose the MH”, then that dog don’t hunt. I have started putting the buyer as taxpayer with the county, with my name and address as a “care of”, then I add a monthly amount to their payment to cover taxes, i.e., if their annual taxes are $240, then their monthly payment gets boosted $20, and when the tax bill is mailed, it gets mailed to them care of me, and I pay it.
Or just trust that they will. As a point of default on your note (it is, isn’t it??), they are required to pay the taxes, and as I have told my buyers, that’s a “pay or pack” point. If they default, then they might just have to pay the entire balance of their note, or move. But is it worth that hassle for a couple hundred (more or less) for taxes? Another consideration: many counties don’t foreclose until taxes are unpaid for three or four years - so if they will have paid you off by then, then who cares? I got mine, and the county can THEN take THEIR house, no matter to me.
Re: trust - Posted by jp(sc)
Posted by jp(sc) on October 20, 2005 at 13:46:18:
That’s a good point Steve about the time it takes the tax office to foreclose. I hadn’t even thought of that. In my county, they hardly ever foreclose on a mobile home only. They count on the fact that before you can sell the home or get a moving permit you have to have the taxes paid up. A guy called me the other day with a house to sell. When I looked the house up on the county records he was 11 YEARS BEHIND in paying taxes. Plus he said he didn’t have a title.
If you have to repo the home, you’ll probably have to pay the taxes before you can resell the home again. That would bite to take back a home 2, 3, or 4 years behind in taxes.
Re: trust - Posted by TeddyB_SC
Posted by TeddyB_SC on October 21, 2005 at 10:30:31:
In my county delinquent taxes on MH’s are BIG business. MH’s are sold for one year’s taxes and they go fast at the tax sale. Tax sales in SC wipes every lien, including mortagages.
TeddyB_SC
one word: - Posted by Steve-WA
Posted by Steve-WA on October 20, 2005 at 13:56:11:
small claims
;-)3
Re: trust - Posted by jp(sc)
Posted by jp(sc) on October 21, 2005 at 13:07:36:
Including mobile homes in parks?
I’ve seen plenty of land-home deals at tax sales, but few home only sales. There is also a 12 month redemption period.
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.
TeddyB_SC
Re: trust - Posted by jp(sc)
Posted by jp(sc) on October 22, 2005 at 06:51:14:
I just found it Teddy. I almost thought you were pulling my leg but now I’ve read it for myself. Section 12-51-96 of the SC Code. That means the purchasers are making over 100% per anum on there money. No wonder they sell fast.
Have you bought at mh’s at these tax sales? What strategies do you think are most profitable?
I wonder why there is an additional requirement to pay rent on mobile home owners/lien holders when that requirement is not present on real estate?
Re: trust - Posted by jp(sc)
Posted by jp(sc) on October 21, 2005 at 20:13:41:
TeddyB_SC
Thanks for the detailed response.
I am completely unfamiliar with the requirement of rent. Who are you collecting the rent from? What if the house is empty?
Re: trust - Posted by TeddyB_SC
Posted by TeddyB_SC on October 22, 2005 at 19:23:12:
JP,
I just found out some of this last year and the rest of it this year. Last year I went in Sept(redemption was November), wrote down the few mobiles that were FLC and then went to look for them and they were gone. Then I got info about getting your bid back or tracking down the home etc.
So this year on Oct 3 I was ready. Not! An out of town investor came in and purchased 1.4 million by his self. Almost nothing went for less than $6,000. Even early 90’s 70x14’s. This guy bid on every piece of property and got half of them. It was bad and alot of people were upset. One piece that I had personal knowledge of was 5 acres of practically swamp land. He bid into the 30k area. LOL.
I didn’t get any mobiles since this guy bid 10-12k on almost every mobile home. Even late 90’s DW’s that you and I can pick up repo’d.
Anyway, I was the winning bid on one MH lot, $6k for $25k lot. Now I just have to wait a year. To show you why people were upset. One of my friends father-in-law got a lot in this same neighborhood for a $1,200 bid the previous year. In the same year a $2,000 bid got him a $40K SFH lot. Then the spoiler shows up.
After the sale was over he was behind me in line while we were waiting to pay our bids. He was telling someone that he was either on his way to Florence’s tax sale or had already been.
This was the first sale that had every piece of property sold. If they had’nt and nobody bought from FLC, the county would sell next year for two years taxes. Why not check with your Treasurer’s office and see if that is the case on mobiles in your area.
Good Luck,
TeddyB_SC