Tax Sale Auction in So CA - Posted by james (CA)

Posted by Kristine-CA on March 05, 2010 at 09:10:09:

James: I know of no case in CA where the county or city discounted a
lien for an owner or potential buyer, unless the buyer was another
muni or city housing agency. As mentioned before, in CA those liens
become attached to the tax bill. I know some investors who have tried,
especially with large liens from multiple abatements, but no one I know
of has reported any success.

Charles’ suggestion about buying the tax cert and getting an
assignment doesn’t apply in CA as CA doesn’t sell tax liens/certs.

I’m all ears from any one in CA who has other experiences to share.

Tax Sale Auction in So CA - Posted by james (CA)

Posted by james (CA) on March 03, 2010 at 16:09:55:

Anyone have been investing in tax sales in So CA - how do you like it? For the first time, I am planning to attend San Bern. and Riverside auctions this month and in May.
Any good tips and advise are very welcome.

Thanks
James

Re: Tax Sale Auction in So CA - Posted by Kristine-CA

Posted by Kristine-CA on March 03, 2010 at 18:10:09:

Planning to attend? Are those counties having live auctions? To the
best of my knowledge they both use bid4assets.com, which is a 3-day
online action. It requires planning as they require a $5K deposit, in
advance of the auction, before you can participate. Are they having
additional live sales? Live sales are fun.

We’ve done really well with tax sale properties but we haven’t bid on
anything the last couple of years…too much competition. The prices
for total junker SFHS at the Kern County sale last week were equal to
retail ($25-50K).

The best reading you can do is the county websites and the info at bid4
assets. They tell you pretty much everything you need to know about
the sale process. What you can’t know without a lot of digging is
property problems, such as toxic waste. There can also be outstanding
but not recorded abatement liens. Those are not cancelled by the sale.

Endless due diligence is my main advice. :slight_smile: Kristine

Re: Tax Sale Auction in So CA - Posted by Charles Parrish

Posted by Charles Parrish on March 05, 2010 at 24:57:58:

I think there are 3,200 counties in the US that hold tax certificate sales, most all have their own little rules and redemption periods.

Learn the rules. Trust no one at the auction; do not share information of what properties you are going to bid on. Have a spotter with you. Stop bidding at your number.

I was a regular at tax sales and always hated the competition, most of the big boys out bid John and Mary Lunch Box investors.

I now work the “Tax Sale Poaching” system. By negotiating directly with owners to circumvent the Foreclose Right of Redemption suit and positioning in the chain of equitable interest; it is now possible to negotiate with the certificate holder.

Paying more to buy an assignment of the certificate to wipe out judgments and liens is my favored method. Honor your contract with the owner however.

Did you know you can negotiate with the city for a discount on the lien amount? Try it the next time a tax sale rolls around.

Wishing you good luck,

Charles Parrish

Re: Tax Sale Auction in So CA - Posted by james (CA)

Posted by james (CA) on March 03, 2010 at 19:29:03:

Hi Kristine,

Thanks very much for sharing. What is going on in your neck of the woods, any fun investing :)?

How do you find out about this liens - title research, county recorder? It would be nice to see how competitive and what kind of deals being bought in my areas. I might be able to look at previous sales and their winning big amounts and then do some comps.

Re: Tax Sale Auction in So CA - Posted by james (CA)

Posted by james (CA) on March 05, 2010 at 08:50:25:

"Did you know you can negotiate with the city for a discount on the lien amount? "

>>>>…When can I do this - after the auction ended on unsold properties? thx