This forum is for asking any questions

[Rob]

This forum is for asking any questions related to the tax sale property bid

[butterflyrini]

How does one deal with cities or towns that will not provide telephone info. on tax sale properties?  Eg.  I contacted a city that had a tax sale property. I wanted information about the property to determine if I might be interested in it.  They told me I had to either mail them a cheque to purchase an information package or drive down to their city hall which was several hundred kilometres away to purchase the package.  They wouldn't tell me anything at all about the property over the phone.  I didn't have time to drive down, and I didn't want to spend money to buy an info. pkg. for a property that I knew absolutely nothing about.

[Rob]

Butterflyrini,

Great question,

The first point I'd like to stress, is to visit the property (if possible)  prior to visiting city hall or purchasing the information package.   Its extremely important to see if the property is vacant and to get a sense of the area the property is part of.  You want to get all of the facts  because it will help you determine a proper bid price.  (For example if your property is not vacant its your responsibility to remove  the individuals which would decrease your bid price on the property).

The package I believe costs anywhere from 4-5 dollars to 15 dollars depending on the municipality and will show you the dimensions of the property.  Some municipalities will charge for this package if you pick it up in person or mail and some will only charge for the maiiling.  Each council decides sets its own prices.

If your property has a house number you can always visit http://maps.google.com/ to get a general sense of the area (with the new  Satellite mapping system in place). 

But if you are going to spent a few thousand dollars on the property, visit the area and see if its really want you want before you place your bid, see if any roads are connected to the property and determine any issues you will have to deal with when you win the bid.  This way you will not be disappointed and can adjust your bid price accordingly.

Hope that helps somewhat.

[Akara]

What does adjusted value mean at a tax sale and why is min bid sometimes greater than adjusted value?

[Rob]

Lets take property from a recent listing as an example.

Tax File 04-2
Parcel 7722 C.S.T.
Lots 228, 229 Pt Lot 230
Plan M98T
Roll No. 54-68-000-004-00700-0000
Location: 82 Government Road West
Kirkland Lake, On
Size of Lot: Front 100.00 ft
Vacant Restaurant – Commercial
2005 Assessment: $160,000
2004 Mun & School Taxes: $17,185.11
Minimum Tender Amount: $168,023.85

The first value is the  assessment value used to determine property tax set at 160,000 (subject to change inline with property values). The second value is the back city taxes owed.  Now if you add them up the minumim tender amount is lower then that value. 

The adjusted value of this property would be 160,000 minus the back taxes owed (minus the leins held on the property). 

A city can choose any reserve number when selling the property, so adjusted value doesn't necessarily have a direct relationship with minimum bid.  Generally minimum bid hovers around the assessment value but no rules exists to enforce this.

[Akara]

Thank you very much for your fast response

[Akara]

It is important that I have a proper understanding of the above.  Would you say that the following is true?

Assessment value - Is 1 or 2 correct?
              1-this is how much the house is worth or

              2-this is the amount used to tax the property because of the area and surronding property values?


adjusted value - is value of property minues taxes deliquent.  Is this correct?

min bid or min tender amount - opening bid at auction - usually amount of back taxes due or house value?  Is this correct?

Thanks a bunch

[Rob]

Assessment Value is number 2.  There is a formula that takes into account the land value of the region.

Adjusted value would seem to be (value of property - debts)

Reserved or min. bid is the smallest amount they will accept for the property(without the back taxes in the calculation).

[tcooper]

Hi there.
I'm just learning about tax sale properties.Just a few questions.I have come across a few websites about purchasing newsletters with all recent postings(for a fee of course)Do you recommend purchasing these or can you find most of them for free?
Also...Do you know the cost of the land transfer tax and the accumulated taxes before you purchase the property?
o.k. one more I promise.If the minimum bid is 20,000 how much higher would you normally go?I know it probably depends on the property but as a general rule.
Thank-you so much

[Rob]

Tcooper,

I started off this website because I was receiving a free newsletter with all of the ontario properties, and then someone came in and bought the domain and started charging for the service.  I looked around and I couldn't find another free service at the time so I decided to create one. 

You won't get any additional properties that are not listed here in an ontario property newsletter.  But if you are interested in other provinces in Canada, or states then that might be a good option for you.

Land transfer Tax?
Here is a calculator
http://www.macnaughtonlaw.com/landtax.htm

If the minimum bid is 20,000 how much higher would you normally go?  See that really depends, most properties are not sold so the min would do.  But with a little interested that bid could go upto 100,000 or more.  You need to determine the value of the property before you place your bid.   

[buyright]

Here is a great site for foreclosure laws from diffrent usa states

http://www.foreclosuredoctor.com/foreclosure-laws-by-state.htm