REO property long term abandoned

[offroad]

Started doing some reading about abandoned property. Property that has gone up for auction, but no one buys it. Hopefully not in a drug user squatter area. Maybe rural. And in that situation long term. Maybe the building needs demolition. Am talking about something that has electricity and water.

Could a person buy something cheap like this? Park the RV in the driveway and fix it up over ten years say?

 

[sparky1]

When I bought my place 84..I stayed in my van weeknights , weekends in a 17 ft Camper for 3 years. finally the county got me,since I didn't have a septic tank, took me over a year after that to get the well, septic then power here. Building permits must be completed off & approved within 5 years. finally in 89 I got a cheap double wide, another yr, till I had a occupancy permit.
I have another camper (casita) & van up in the field the sheriff doesn't say a thing about it since I have power & a septic tank on the property.

 

[offroad]

Sparky - how much did the well-septic- power cost you in 1990 dollars back then?

 

[wagoneer]

Hey your up early /or late talkin sweat equity

 

[sparky1]

first well was $1100. 255 ft, 1987 it caved in, earth quake (insurance wont pay)
second well 455 ft--$6,500.
septic was about 3200 I think,1000 gal tank Lots of rock. to remove for drain field install.
power panel on my pole & hookup to trailer was about $800. (panel,breakers & wire,2"conduit )X Boss did hookup no labor,
...............
have a great Day all, huge snow storm coming here today. worried about loosing power, I'm on the end on the line,& way off the road.

 

[Zil]

A lot of time the property has other liens. There were some here in town that sold at auction for less than 10K, but the buyer found they owed over 100K to other liens. One had environmental cleanup costs that could not even be determined, but had to be done.

 

[offroad]

Zil - I asked that question on another forum, and supposedly an auction will make all the other owed expenses go away. that is what a forclosure auction is about.

Something that is a REO has no liens at all in any context, as it already went through the auction and no one bid on it. the liens are all worthless per the auction, and will be discharged. It might have a superfund toxic waste dump on it, but you can find that out. You can do inspections on REO property.

 

[Blue]

well... theres something else you can do about abandoned properties.... If the property tax has not been paid, and if you camp on it for five years and pay the property tax for those years, you can file a motion to own the property by homesteading, clears the title and becomes yours for 0.00 dollars (well other than the transfer tax etc) its not easy but its been done before, I think you can even use it as a defense against being kicked off by cops (show the property tax bill paid by you) but I'd talk to an attorney who specializes in such things.

 

[Blue]

like you said, forclosure proceedings dont dismiss mortage liens... homesteading gets rid of the current owner and any liens on the property (I think) also, not sure if you can just pay back taxes and take the land, I would guess most often if the land wouldent be worth the value of the taxes (if its like 10 or 20 years an a middle of nowhere property etc)

 

[Zil]

offroad, not to argue just to educate. There can be other liens on any auctioned property. REO or other. This is not the place to discuss the minutia of property law. But everyone please be careful and do your due diligence, and homework. Tax liens are sold at a type of auction, usually once per year, but you only get the right to foreclose on said property, as long as you are the last tax lien.

 

[offroad]

That's new. TAX LIEN AUCTION is a thing? What if no one bids on the tax lien? Driving through the back country rural areas I see abandoned houses all the time. Are those NO RESERVE type auctions where you could get it with $10 in your pocket as the final lien holder, aka last lien holder?

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And would a TAX LIEN auction be kind of illegal. You can not collect via forclosure unless you are the only or final lien holder. And the property is worth nothing?

 

[Lucky mike]

HHHHHmmmmmm........your dreaming if you think you can get something for nothing , Anything with a tax lean is an asset to the county it is in. The county will seize it for back taxes and then offer it up at a discounted fair market price at auction but if you dont meet the low ceiling price its money in the bank to them.

You might want to try Homesteading under the homestead act also.....it will get you the same outcome......

 

[offroad]

Well not for free. But for market price on abandoned property where there is only one interested party who wants to buy. Why would the county keep something that generates no taxes.

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Willing to pay taxes on something I can work on restoring over 10 years. If I can park an RV on site.

 

[Lucky mike]

Even tho it generates no taxes.....its market worth will continue to grow....they really lost nothing when they seized the property just tax money.....so they went from virtual ownership to physical......and they dont tax themselves so the costs are minimal while they possess it.

My suggestion would be to go to one of these auctions , in fact do the homework on one of the lots up for bid you dont want , then go to the auction and see what actually happens...you will find you are misinformed.

I have bought and sold many forclosed properties in my life and altho I saved a few bucks here and there it all ended up even or losing in the end.........the days of cheap are long gone......greed and technology has surpassed and left average joe with a dream behind!!

 

[offroad]

So county will take a $10000 loss for every ten years of taxes. On a property that is REO where the house would not pass an OCCUPANCY inspection? That would cost. $20000 to fix up. ( or if you are good much cheaper).

Talking long term REO. You are correct. I don't get why property remains abandoned.

Except that someone wants money where there are not getting any from the market.

 

[offroad]

Lonfu - thanks. Great example

 

[Lucky mike]

If it was that easy.....the money and holdings that I have , I could multiply easily at a rate of better than 10 to 15% a year just in buying & selling this type of property not to mention the rooms at the auction house wouldnt be able to handle the flow of bidders....

There is a reason these properties exist and stay empty for long durations......

less headache would be to buy a lien free piece of land straight up.......of course a deal is only a deal if you accept the price you must pay!

 

[offroad]

Lucky m. - that is what I am looking for. Lien free land with junk house to be bought cheap., but within market value

 

[Zil]

Here where I am stuck for now. An east state. Property tax late on November first, goes to tax sale. Bidders bid by interest rate, starts at 18%, if you want the lien you bid lower interest. If it is very desirable property i have seen negative interest. Its a weird game. What you get is to pay the due taxes. After two years you can start foreclosure action. Very expensive, and could take another two years. But you have to keep paying the late taxes every quarter to keep your lien first in line. Someone can get a lien superior to yours then you have to pay them or lose your investment. If no one bids the lien, the taxing community obtains the lien and they can foreclose right away, and gain ownership. The best way to buy abandoned property is to find the ones just foreclosed by the Big Bank mortgage holder.
They have their price and sometimes will negotiate.

 

[Lucky mike]

your probably right then .....but to me that land is just like the free BLM use land .....so I wouldnt have a need for desert land until the northern states run low on sand for the ice on there roads