土豪乐潭 We the Landlords

买了一个房子，扣门告诉里面的租客。租客说，你一定搞错了，现在的房主是一个公司，他们一年多前买的房，后院一人多高的草还是我除的...., 他们在county trustee sale 买的。急忙跑去查地。This guy bought the house for $2500 from hoa. Ranted for more than one year. And they didn't record the title transferring under the original owner name. doing so won't cause the bank's attention either, so the bank still took their time to process the foreclosure. He bid on Bank slowness so still made the good amount money. They didn't pay property tax, but he paid Hoa. He made about the net $12500 on this house. When checking his properties, found they have more, all junior liens! some houses was bought as low as $500, and it has been renting for almost two years.... What a smart way to make money. He didn't even clean the house at the first place, the new tenant did for discount rent.

这个不是 Honest money...

这人是在损阴德啊．

小翼，我不用付Hoa lien, mechanical lien etc, but I had to pay property taxes, plus tax late fees and fine. Anything which relates property tax, I have to pay to clean the title. IRS lien is higher lien than the primary lien, but it works slightly different.

nice study. Thanks for sharing.

Where can find lien sale? What is the risk?

I had look into HOA and tax lien sales in the past, I am sure each state little different, here in Indiana, such lien doesn't actually give the title right but only a convey to the title, meaning its not a true title but only temperately ownership of fraction of the title.

HOA and tax liens are priority liens ahead of mortgage liens, 99% of time bank will not let it happen, but there always mistakes can be made..

after investor bought the HOA and tax lien, to truly own the property, investor need to foreclose the mortgage lien but in this case, this company is very smart, they not looking into owning the property but only trading small amount of investment for temperately ownership for short period of time.

another risk is, if the owner still living in there, very difficult to force an eviction, because in court's eye, they still the owner. the best chance is the property already a rental property or vacant, I would think cash for key is the fast and best way.

another problem is, how to sustain a larger scale portfolio in long term, for thus company to survive, it really need to be a big city with lots of different sub-division where HOA dominates the area neighborhood.

It's simple, just contact the lien holder, get a payoff statement, and pay it off.
Or, you can negotiate the payoff amount. It's does not hurt to try.

In my county, the lien orders are Property Tax, 1st Mortgage, 2nd Mortgage, HOA lien is at same place as Mechnics lien.

Surprisingly or contrast to what you believe or heard, IRS liens do NOT have any superiority. They are treated the same as other creditors, its order is determined by the date of file. If a Mechanics Lien is filed a day earlier than IRS Lien, it has higher order than IRS Lien. In the case US Government foreclosese the property, Government has obligation to pay off this Mechnics Lien (and other Superior Liens).

So if you bought a HOA Lien, you are still not a owner, you are just a creditor.

To become a owner, you have to pay off the Liens ahead of the order of your Liens (Superior Liens), then you can become a owner.

Property Tax Lien is always at No.1 place, that's why Banks always pay property tax. If they are not in Junior position, I can bet they don't give it a damn.

If you want to buy properties through courthouse foreclosure, understanding Liens and Order of Liens is essential. I see lots of investors get burned by not carefully doing title search or worse, doing nothing (not searching titles and checking out property conditions) and expect 天上掉馅饼。

When a mortgage lender forecloses on a property that carries an IRS lien, the mortgage lender must contact the director of the local IRS district where the property is located and notify him/her of the impending foreclosure a minimum of 25 days before the foreclosure takes place. The mortgage lender must either deliver notice of the foreclosure in person or send it via registered or certified mail. Provided the IRS receives proper notice of the impending property seizure, the mortgage lender, as the superior lien holder, can successfully foreclose on the property.

After a mortgage lender’s foreclosure, the IRS has a total of 120 days during which it may redeem the property. If the IRS chooses to redeem the property, it must pay off the remaining amount the borrower owed on his home loan. If the mortgage lender has already sold the property to a third party, the IRS must pay the new homeowner the amount he paid for the property in order to recover it. Relinquishing the property to the IRS if it chooses to redeem is not optional.

That's all the advantages IRS has.

有营养

You are not owner yet, have to foreclose the property.