Ontario Tax Sale Property Forum
Tax Sale Forum => Questions and Answers => Topic started by: Gmangg on May 30, 2006, 06:23:00 AM
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Hi Everyone,
I am a newbie and I am looking at a possible tax sale coming up. Now I have done a few driveby's of this property and the owners of the property are still living there. Now if I were to win this property, I would probably have to evict this family. This is probably the worst thing about tax sales as you take a huge risk that this family could destroy the inside of the home and cause future problems.
Has anyone had to evict someone? Any tips or suggestions?
Thanks,
George
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I heard this topic before and the answers where general legal advice on what to do.
What I would like to hear is some true to life stories from those that had to evict previous owners and what happened. Did you have to drag them out screeming or kicking, did you find recent damage in the house, did you have your tires slashed.
Stories please.
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Always remember that you are dealing with the low end of the gene pool in these cases. These are folks who let their property run down and didn't pay the taxes - do you really think you will be successful in getting any restitution from them afterwards.
Keep in mind when you are bidding on such properties that these are some of the pitfalls you might encounter. Don't assume that because the assessed value of a property is $200,000 that is what it is worth. The Assessment system does not take into account the physical state of a property, it simply takes the dimensions and type of construction then compares that to what similar structures might have fetched in the area. The ones that sold on the open market were likely in pristine condition as their concientious owners wanted to attract the highest and best value they could. On the other hand the owners of the tax sale properties generally don't care what the assessed value is since they have no intention of paying and therefore they don't usually take the time and effort required to appeal their assessment and get it down to a more reasonable figure which reflects the condition of their asset.
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What is the actual procedure for eviction once you've officially taken ownership of the property? Can you just show up with local law enforcement and have them thrown out on the spot like they do in Michigan? Or do you have to get them some court order with notice?
Just curious, not something I would probably want to do since I don't really want to get shot.
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I believe it is the same process for evicting a person from an apartment building. You first need to serve notice, then after a period of time (14 days?) you can go to court to get an order to have them removed. At that point, you would bring in the local law enforcement to enforce the court order.
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Always remember that you are dealing with the low end of the gene pool in these cases. These are folks who let their property run down and didn't pay the taxes - do you really think you will be successful in getting any restitution from them afterwards.
Keep in mind when you are bidding on such properties that these are some of the pitfalls you might encounter. Don't assume that because the assessed value of a property is $200,000 that is what it is worth. The Assessment system does not take into account the physical state of a property, it simply takes the dimensions and type of construction then compares that to what similar structures might have fetched in the area. The ones that sold on the open market were likely in pristine condition as their concientious owners wanted to attract the highest and best value they could. On the other hand the owners of the tax sale properties generally don't care what the assessed value is since they have no intention of paying and therefore they don't usually take the time and effort required to appeal their assessment and get it down to a more reasonable figure which reflects the condition of their asset.
Thanks for the info..
Now this is what I truly think. I think this family might find away to settle their property taxes as this home is in a very nice area and the home itself looks well kept from the exterior. The minimium bid is roughly $19k so I might put in an offer of $25-$30k as the assessed value as per the city is $134k but with the way the market has dropped I could see this home selling for at least $100-$110k. So basically you take a risk at maybe sinking $10k-$15k in renovations just incase the destroy the inside (could be more). Total investment might be around $50k plus legal fees if you have to evict them. My dad figures the lot itself is worth $50k alone. The family also drives a newer van and an older truck and they have children's toys outside.
Would some of you be willing to put in a bid in this scenario? Remember it also looks like you might have to evict someone.
Also in this case would you want to talk to the owners of the home and explain that you know that their home is up for tax sale and see how they react? Hopefully they won't shoot you or punch you..hehe!!
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In this case, do not walk up to the front door and tell the family they are going to be evicted before the sell even occurs. Telling them that might force them to get a quick mortgage or borrow money from friends. Wait until the sale goes through, then drive up and tell them you are the new owners and how you bought the property(if they ask). Try and work out an arrangement if you feel personally bad to let them stay in the house for a period of time (bring a lease). If you want them out of the house, you will need to serve notice (get a lawyer to draft up a copy) and either give it to them or nail it on the door. If you are not removed in the period of time, then you can legally go to court and have them removed.
Would some of you be willing to put in a bid in this scenario? I wouldn't, but that shouldn't stop you
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They've already received ample notice from the Municipality (by registered mail), and they have ignored all request to pay their taxes - for whatever reason.
Walking up to the door will - in almost every case - .
result in a cancellation of the sale. Trust me, they will normally come up with some way to pay the taxes. I do know of two cases where that wouldn't have mattered, since the owners were counting on getting more through the excess proceeds of sale process, than by trying to sell it privately - and in both of those cases it worked.
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Thanks for the info again guys..
Now how does it work if these people come up with tax money and save the potential tax sale. What happens to their mortgage lets say.. it's most likely that if they are behind on property taxes that they are behind on their mortgage too? Is the mortgage lien removed? I can't see that happening. It might eventually result in a foreclosure..no ?
Just curious as I want to know how the whole process works? I have learnt so much in about tax sales 2 weeks it's pretty amazing. This site is great by the way!! Very informative people like Rob and Frank and quick to respond to our questions!! KUDOS!!
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Once the taxes are paid and the sale is cancelled, the whole matter becomes a private affair which is the owner's personal business. How they came up with the money is of no consequence to us and it simply means they have an alternative debt (instead of the municipality) to someone else, be it a family member, friend, or mortgage company.
All liens on title that were there before the registration for back taxes are still there, they would only get cancelled in the event of an actual tax sale. If you are interested in a property and you keep an eye on it after the cancellation you might see it go for sale privately or on the market - I would assume that there could be a deal there to be had, but again that is a private matter.