Tax liens UP 25% in Colorado. Post 112

Property tax liens up 25 percent County to auction debt Dec. 5

County NewsBoulder and County CO Friday, November 28, 2008

More property owners in Boulder County are falling behind on their taxes, according to Treasurer Bob Hullinghorst, who expects to have 25 percent more tax liens to offer at this year’s auction than last year.

“It’s up everywhere – if it’s up in Boulder County, and we have a pretty stable economy, you can pretty much guarantee they’re up everywhere,”Hullinghorst said.

Last week, Larimer County had 77 percent more tax liens to sell at its annual auction, according to the Coloradoan, and in Weld County, the Greeley Tribune reports that liens have jumped 47 percent.

Most of the unpaid taxes are on empty lots – such as the 40 vacant properties in the Prairie Village subdivision in Longmont – which collectively owe about $80,000 to the county. But as of Wednesday afternoon, taxes were still due on a mix of developed properties as well, including the unsold Pearl Street Lofts in Boulder, a hangar at the airfield in Longmont and a handful of condos scattered about the county and a few rental garages.

Buying a tax lien lets an investor collect the taxes from the property owner at an interest rate determined by the state, which this year is 11 percent. …In rare circumstances, when the taxes aren’t paid for several years …it’s possible to get a deed to the property. But Hullinghorst can only think of one time when that has happened in Boulder County.

“There’s been one home within the last 30 or 35 years,” he said. “The man was very elderly, but he was still very much aware of what was going on. He just didn’t want to pay his taxes. The person who had the lien went ahead and got a treasurer’s deed, but he let the gentleman stay in the house anyway.”

See entire story: http://www.dailycamera.com/news/2008/nov/28/property-tax-liens-up-25-percent/

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Coach Mitch’s REFLECTIONS

 

It’s a chorus – tax liens are UP

No one doubts it any longer. The news is in. Tax liens are up, up UP. Tax deed auctions will also have many more properties going to sale versus being redeemed at the last moment.

It is not a good time to be selling

This is bad economic news for a growing segment of the population. In almost all areas of the country, those who need to sell property are not going to be getting the top dollar that they had hoped for – just one year ago.

It’s going to be getting worse

If you anticipate needing to sell, sell now rather than wait until later. I hope the spring brings a bump in prices, but I doubt it. It is quite possible that your best selling price will be gotten now, as prices should continue to spiral down.

Unless there is Congressional action, the scheduled changes of interest rates in Option ARM’s, ARM’s and no interest loans will be going into effect and the resulting wave of new foreclosures will feed the current frenzy.

Getting property for pennies on the dollar

The tax lien gurus all tout that you can get a handsome rate of return on your invested dollar by purchasing tax liens for several years and if the property is not redeemed (the taxes are not paid) then you could get that property for the amount of the taxes.

It is possible, but not likely

See the last two paragraphs of the article. One house in 35 years was gotten for the taxes. Lightning probably strikes more.

In this case, the investor even let the previous owner, an elderly man, stay in the home, probably until he passed. That doesn’t fit the Simon LaGree image of real estate investors. It is however closer to the real persona of real estate investors, who, as a group are very giving, understanding and helpful. Because they have some assets, landlords tend to be forgiving.

Buy or control property BEFORE the auction

This has been my mantra. It makes so much sense.

People who are late paying their property taxes know if they will eventually be able to pay the taxes. Each year between 96% and 98%, do pay the taxes. People don’t let the property go unless they have no other choice.

It is precisely those folks who feel that they have no other choice that Coach Mitch’s “Ridiculously Simple System…” hones in on. These folks are happy to see you because you are giving them a choice that they did not have. They do not like the low offer that you make but they understand it, considering the sad economic times.

See Coach Mitch’s “Ridiculously SimpleSystem…” for details.

Like I said, it makes sense.

Think about it.