Posted by John Merchant on October 12, 2004 at 09:22:21:
No non-IRS* tax lien is going to be able to paid with any discount. Never heard of any taxing authority, be in county, city or state discounting such.
To best of my knowlege, ALL such tax collectors are going to have to, by state statute, eventually force a tax sale. Isn’t up to discretion of tax unit, but matter of state law.
*And trying to get a discount out of IRS is a very difficult proposition, that generally is not done to assist the tax payer. Just not IRS modus operandi!
Posted by forrest on October 04, 2004 at 13:50:48:
I have a chance to buy a rehab property for about $7000. (The amount of back taxes.)The property would sell for over $35,000 without fix up, but there is a $152,000 medical lien from a hospital. There have never been any payments on the lien since recorded on november of 1999. Doesn’t the statute of limitations limit the number of years the county commissioners can try to collect on this debt. Any help would be much appreciated.
John Merchant is correct. Taxing jurisdictions to my knowledge, and I’ve been buying tax deeds/liens/certificates now for a number of years, never discount. In some cases they will work with you for a payment plan…but …no discount. I got beat out of a 1.5 million dollar property over an $80,000 tax lien because they worked out a payment plan…I know first hand. They did not discount…just made a payment plan and I lost.
Simply does not make sense…think about it…if you could let your taxes go delinquent and then get them reduced…there would be a line three blocks long at the counter each day…with people wanting the discount. Shortly the taxing jurisdiction would be BROKE.
Secondly, I think lots of people are reading the posts by Ron Starr saying he buys property for pennies on the dollar at tax sales and they think he is getting them at a discount.
He is not. AFTER the property goes by default to the taxing jurisdiction and any redemption period has expired the taxing jurisdiction OWNS it just like a lender at foreclosure.
ONCE they own it they can then sell it (to Ron Starr and the likes) for whatevr they can get and PUT IT BACK on the active tax producing rolls again.
These are TAX RESALES that have defaulted, been through the system and are county owned, and are not Discounted Tax Liens.
Re: statute of limitations on RE - Posted by John Merchant
Posted by John Merchant on October 04, 2004 at 18:44:33:
While you could pay an attorney to brief this question, you could probably get a good, free answer over at county tax collector…they’ll know how long it stays on title records.
Generally ANY gov. lien is there forever, but this, being a hospital, and therefore a “quasi gov.” lien, might or might not…but I’ll guarantee you that the tax collector, or county atty, will know.
In Ohio (or at least a few counties in Ohio -not sure if it applies on a state by state or county by county basis), the liens are good for 5 yrs before they have to be renewed to remain attached to the property.
We’ve got a similar situation which is why I know the above. My question is…how successful are people at getting these lienholders to accept a lower payoff for the amount owed. We’re trying to buy a prop that has maybe $20k in equity but has $6k in 3 certified liens.
Furthermore, my question would is…what if we go ahead and buy this prop subject to the liens. How likely are the lienholders to try to force a sale of the property in order to collect on their judgments considering each lien is about $2000. I would think they’d not want to spend the time, energy, money to go after the payoff of those but I have no experience in trying to bargain with lienholders to settle for a smaller payoff. Anybody else??