Ontario Tax Sale Property Forum

Tax Sale Forum => Questions and Answers => Topic started by: Larry on July 07, 2008, 09:46:15 PM

Title: Limerick
Post by: Larry on July 07, 2008, 09:46:15 PM
Does anybody have news from the tender in Limerick?
Thanks
Larry
Title: Re: Limerick
Post by: farrouk on July 08, 2008, 01:47:14 AM
Put in a stink bid on this one, but am not very optimistic. These large acreages are going for silly prices lately. I judge by the lack of discussion there were many people bidding. Maybe the guy with the "developer buddy" bid starting with 37 again. I think I will check back in the fall perhaps things will cool off by then.
Title: Re: Limerick
Post by: Larry on July 08, 2008, 02:16:11 AM
I think you are right, even though there was nothing (or almost nothing) posted about Napanee and there were only 4 bids for one lot and 2 for the other one. But it is true the bids are high these days. Unless you build on the lots, I do not see how you would have a profit. Am I wrong?
Larry
Title: Re: Limerick - Bid Results
Post by: Dave2 on July 08, 2008, 01:07:05 PM
Next time I will learn to quit while I am ahead.  Asked the bid results this morning and was told winning bidder was from Cobourg.  (where I am from).  Unfortunately no cigar but again close.

Winning bid $19,100. 2nd $18,900 3rd (mine) $18,100.  2 others in $17,000 range

16 bids total. 

Again an issue of what do you with property.  rear 1/2 was environmentally protected which I believe means you cannot log.  Might be okay for hunting but rear creek is relatively wide so you will have to build a bridge. 

Dave2
Title: Re: Limerick
Post by: Larry on July 08, 2008, 08:58:19 PM
Thank you, Dave2.
Title: Re: Limerick
Post by: Frank on July 10, 2008, 08:11:44 PM
Don't know if it was this one, or it was on another tag, but I saw something this morning that caught my eye.  Now that I go back to it, it seems to have been pulled from site. 

Something about a number one bidder who has offered the number 2 bidder a premium to close in his name.  It would appear that it would be worthwhile for him to forfeit his deposit, if he can still get it at the second bid amount plus a finders fee.

Scum-bag move if I ever saw one.  If I were the Treasurer, and I caught wind of it...I'd cancel the sale and do it all over again.  I don't think it is illegal, but it would take a great deal of collusion on the part of the two independent bidders to make it happen.
Title: Re: Limerick
Post by: farrouk on July 11, 2008, 12:21:39 AM
Frank:
I don't see a problem with this strategy. The 2nd place guy gets a few bucks for his trouble, The winner gets a discount and the municipality gets the tax owing and buddies deposit. The only loser is the deadbeat property owner who is probably too lazy or stupid to claim the excess cash anyway. I am sure many husband and wife teams are doing this allready. I wouldn't personally have the nerve to approach a stranger for this kind of thing but others would have no problem with doing it.
Title: Re: Limerick
Post by: Frank on July 11, 2008, 12:43:28 AM
Frank:
I don't see a problem with this strategy. The 2nd place guy gets a few bucks for his trouble, The winner gets a discount and the municipality gets the tax owing and buddies deposit. The only loser is the deadbeat property owner who is probably too lazy or stupid to claim the excess cash anyway. I am sure many husband and wife teams are doing this allready. I wouldn't personally have the nerve to approach a stranger for this kind of thing but others would have no problem with doing it.

I already told you that I was a nice guy.  It simply goes against my morals,  it totally destroys the integrity of the tender process.  Why do you think it is done under a sealed bid...dah. 

Hey, I have an idea...why don't we simply put in one bid a coupla days before the opening, then picket the town hall so that no else can get in to make their bid.  Sounds really honest and moral to me...not a scam at all.   :-[
Title: Re: Limerick
Post by: Pfm1011 on July 11, 2008, 12:48:22 AM
Firstly there would be no loss of deposit as the first bidder is completing the deal, but just not under his own name .  Sounds more like the first bidder had second  thoughts and decided he didnt want it. If I was second I would just let it go or at best ,offer the first what he bid so the first can walk without a loss as long as it wasnt much more then you  originally bid. Wouldnt pay a premium , well not much more then a case of beer or two.

Frank I dont see what the big deal really is, First changed his mind after the bid, offered the second a chance to proceed. Basically selling his option to buy, Goes on everyday in real estate.

Of course if I was Number 2 , I sure as hell would look hard at the land  because something has caused the number 1 to change their mind.Could be simple as bid blind and didnt  like the land when he seen it...or could be he didnt like what he seen on the land..IE barrels...
Title: Re: Limerick
Post by: Larry on July 11, 2008, 01:37:11 AM
I do not know if you understand, but the first bidder wants the land, he just wants it at the price the second bidder put. So he wants to buy out the second bidder. Would you sell yourself out for few hundred bucks?
Larry
Title: Re: Limerick
Post by: Frank on July 11, 2008, 02:21:45 AM
Firstly there would be no loss of deposit as the first bidder is completing the deal, but just not under his own name .  Sounds more like the first bidder had second  thoughts and decided he didnt want it. If I was second I would just let it go or at best ,offer the first what he bid so the first can walk without a loss as long as it wasnt much more then you  originally bid. Wouldnt pay a premium , well not much more then a case of beer or two.

Frank I dont see what the big deal really is, First changed his mind after the bid, offered the second a chance to proceed. Basically selling his option to buy, Goes on everyday in real estate.

Of course if I was Number 2 , I sure as hell would look hard at the land  because something has caused the number 1 to change their mind.Could be simple as bid blind and didnt  like the land when he seen it...or could be he didnt like what he seen on the land..IE barrels...

You obviously didn't get it.  The first bidder is trying to buy the second bidder.  Purely a financial scam.  The first never changed his mind, he is simply trying to get it now for less than he bid, through the back door.   I feel badly for bidder number 2 as this is a lot of undue pressure that no one would expect going into this.
Title: Re: Limerick
Post by: Pfm1011 on July 11, 2008, 02:40:29 AM
Sorry . Im pretty thick...... took it as the other way...  Now I get it...

Two ways to look at it...  Bugger you, you outbid me .. Im not doing you a favour,pay the piper   or  Hell I lost the bid, I might as well make a buck or two but   the latter is not a very good plan. 

  I personally would tell him to take a hike as if he gets away with this he will continue to bid high and beating people knowing he can wheel and deal down his bid costs after he wins....You will be creating a monster and assuring you never win a bid again..  so screw him, make him pay what he bid and he will learn not to overbid otherwise this clown will continue to bid high at take all the deals.  Accepting the kick back will insure this guy gets all the deals in the future and you get none....


Title: Re: Limerick
Post by: farrouk on July 11, 2008, 05:14:23 PM
Guys just got the results from Limerick. They sent me a list with everybodys name and bid. Its actually a realy good idea all municipalities should be required to do it.
Some interesting tidbits

1. The winner put in 2 bids one at 19K and the other at 10K (does that make him a scumbag Frank?)
2. The treasurers husband/relative put in a failed bid

Title: Re: Limerick
Post by: Frank on July 11, 2008, 11:46:18 PM
Guys just got the results from Limerick. They sent me a list with everybodys name and bid. Its actually a realy good idea all municipalities should be required to do it.
Some interesting tidbits

1. The winner put in 2 bids one at 19K and the other at 10K (does that make him a scumbag Frank?)
2. The treasurers husband/relative put in a failed bid



When I ran tax sales, my relatives and friends were forbidden from even considering bidding.  The net result would have been an impingement on my character, as they would have been seen as having an inside track...I have too much integrity, and am a professional...and that's all there is to it.   Obviously not all Treasurers are professionals.

Putting in two bids is just a sleazy way to protect yourself from leaving too muc on the table.  The best thing that could happen to those people to be outbid by $1 or even a penny will do.

No, the scumbag award goes to the fellow that tries to cajole a third party into his scheme....was it you farrouk???? 8)
Title: Re: Limerick
Post by: farrouk on July 12, 2008, 12:32:59 AM
Sorry Frank it wasn't me. I'm like you.... too nice of a guy.
But in the end he has the property and I don't!
Its not a strategy I would ever deploy as the 2nd place guy could take your bribe and then turn around and deed the property in his own name. Now you are out the property, your deposit, the bribe money and the cost of a hit man to finish buddy off.
Title: Re: Limerick
Post by: Larry on July 12, 2008, 04:43:34 AM
People are people everywhere you go in this world. Amazing, you would think a civilized and fairly well protected (from the legality point of view) country like Canada does not have so many scum bags.
I might end up with a -1 on my karma now.
Title: Re: Limerick
Post by: Pfm1011 on July 12, 2008, 11:47:23 AM
Frank

In regards to not letting your friends bid, I highly respect your integrity however I dont think there is anything legally or morally wrong subject to the treasurer declaring possible conflict and having a third party ensure the envelopes remain sealed prior to the opening.   IE they go direct to the vault upon arrival to the city and treasurer never comes in contact with the envelopes.   Of course no matter how strict and professional you are, there will be one of the losers screaming how he got ripped off ( and it will probably be the guy who came in ninth place). Some of these small towns , its impossible not to have a friend or family of a town employee as one of the bidders.



Title: Re: Limerick
Post by: justlooking on July 12, 2008, 02:37:09 PM
I must say that I'm quite surprised that relatives of the treasurer are allowed to bid. Could this not be considered a conflict and should the winning bidder be the relative, subject to dispute and cancellation of th sale? 
Title: Re: Limerick
Post by: Frank on July 12, 2008, 07:12:37 PM
I must say that I'm quite surprised that relatives of the treasurer are allowed to bid. Could this not be considered a conflict and should the winning bidder be the relative, subject to dispute and cancellation of th sale? 

There is absolutely nothing in any legislation that forbids anyone...even the Treasurer himself, from bidding on a tax sale property.  It is a matter of personal integrity, and in most cases there exist Municipal and other professional codes of conduct. 

The last thing that a professional in that position wants is for his/her integrity to be called into question.  In the municipal environment, you live and work in a fishbowl -- the local media would pick it up quicker than a baggie in a scoop your puppies poop zone, and it would become a local scandal.  Whether innocent or guilty of any kind of misdeed, you would be considered suspect and some Councillors (both present and future -- some will run on a platform of cleaning up the perceived mess at city hall), will be out to get you.

I had many a friend/relative asking about properties that were up for tax sale.  They wanted to save the cost of searching title, and get to know everything you knew about the property...for obvious reasons.   I had a standard response.  As pfm says however, total exclusion is somewhat impossible, and in the event of someone you know bidding it is pretty much standard procedure to remove yourself from the equation.  Life sucks.  8)
Title: Re: Limerick
Post by: Dave2 on July 12, 2008, 07:18:16 PM
Farrouk:

Out of curiosity what was the standing of the relative.  I am curious because there was a really close
separation between first and second bidders.  The one I think it might be was way down the list at a little over 1/2 the winning bid.

Dave2