Ontario Tax Sale Property Forum
Tax Sale Forum => General => Topic started by: Rob on December 20, 2009, 02:23:54 AM
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Recently the concept of trading / selling the second place bid came up. This can save the bidder thousands of dollars if done on the right property provided the bids are far enough apart to justify losing the deposit on the first bid. It doesn't come without risks.
I see the practise as a good strategy for a property that someone made a bad assessment on and won the bid. Rather than throwing away the deposit and getting nothing, the deposit gets thrown but the property is purchased at a cheaper level.
This is not a wise long term strategy rather a hail mary pass that will only payoff in rare situations. I see the practise as moral and fair but only useful in the most interesting situations or biggest mistakes.
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Very well said!
I agree even though I have resentment towards people who bid far too much and cause an inflationary effect in this game. I can see that incorrect value assessments could happen to anyone even me.
However the logistics of buying/selling a bid sometimes seem difficult especially when treasurers refuse to give out the names of the second place person and or the winner (over the phone that is) (Trent being an exception) Obviously its done at the opening. But is there a way to compel the treasurer to tell the names?
Maybe if winners and second placers announced their winninngs on this forum it would make the process easier if needed. I notice people seem reluctant to announce their winnings here. Why is that?
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Worldjohn:
Recently I have had two situations where the purchase of the second place might of made sense but I did not participate in either. In the first I was worried that the extra time for getting title would be too risky with a potentially valuable waterfront property. Two years earlier a real estate agent helped redeem a similar property and earlier this year people were moaning about a similar redemption. If I have a valuable property I want to get title very fast.
On the second the offer by the second place bidder was unexpected and I wanted to try and see if I could get the property included in an already pending rezoning which would save me as much as the second property purchase. Tommorrow I will see if I am a genius or a fool.
I don't agree with Rob on one point that the purchase of the second place bid could not be done without consequences. Leaving aside the issue whether the sale of the second place bid is good for the muncipality or not, In both instances I hope to make another follow-up offer on other adjacent properties that were not sold at tax sale. In trent hills the person who I have to make the offer too also heads up planning. I want to keep a good reputation with him and other members of municipal staff because thanks to the advice of people in this board I now own half a dozen properties in this municipality and will pay taxes in several others next year.
I too would like to find out how to determine when no one else will bid so I can lower my bid.
This year has been good to me and insite of heavy local competition and some challenges with municipal officials. I would like to say thanks to all and especially to Rob for getting rid of some Riff Raff. Tax sales can be worthwhile if you work at it enough and have some luck.
Merry Xmas
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I was approached by one second-place bidder, and I didn't think it was worth the risk: where does one stand, legally, if you give up your winning bid, and your deposit, and bidder # 2 decides to not play fair with you? I'm not sure if you would have a case, even if you had a contract, because, in essence, you are trying to diddle the municipality and also the registered owner, who is entitled to claim surplus funds. If you made the bid in the first place, live with it, & be sure of getting title, otherwise you might be in the position of the guy who drops the soap in the shower room!