Amherstburg houses

[nihama]

Calling out to all the experienced bidders.....Will Amherstburg houses redeem??  With your experience.

[g2020]

Yes.

[Dave2]

Calling out to all the experienced bidders.....Will Amherstburg houses redeem??  With your experience.  

Nihama:

Just a general observation, that this information is something we would all like to have but unless you have excellent local knowledge is generally not available.  I usually like to give the board insight into one tax sale a year and gave my once a year recently but that is it until this time in 2013.

In interim I will retain for personal use if I am fortunate enough to find one which is rare as I have to find a way to pay for all of those beer bets for Netpred and now it appears G2020.  

[g2020]

The good Amherstburg house (8481 North Sideroad) has been redeemed per a conversation with the town on Friday morning - interestingly this is an OTS featured property and they still do not show it as being redeemed. I do not know what the answer is because even waiting intil the last day to do the research is no longer working, as shown by Frank' Wasaga Beach frustrations. The policy of most of the major banks is now to wait until the last minute, and redeem to protect the mortgage only if no one else has done so. Any ideas?

[Frank]

The good Amherstburg house (8481 North Sideroad) has been redeemed per a conversation with the town on Friday morning - interestingly this is an OTS featured property and they still do not show it as being redeemed. I do not know what the answer is because even waiting intil the last day to do the research is no longer working, as shown by Frank' Wasaga Beach frustrations. The policy of most of the major banks is now to wait until the last minute, and redeem to protect the mortgage only if no one else has done so. Any ideas?

Gord is right of course, and that has always been the banks routine.  I should have requested the treasurer's statement in advance of the sale...and I would have discovered that there was a bank mortgage.  When I did the search on this one, I saw that the mortgage was only $30,000 and in some of those small cases they won't act as they stand to get their money through the excess proceeds of sale provision.   Another intersting one on that property was that the Execution search revealed that the owner had a Writ against him from a credit card company for over $8,000....the writ also prescribes that Capital One was allowed to continue to charge him their customary 29.5% interest rate...I think I am in the wrong business. 

[netpred]

Most often the mortgagee will redeem the property to preserve their security. Frank is correct that if the mortgage is small, the mortgagee may not wish to spend good money after bad.

[g2020]

My quess to Netpred's question is "restrictive covenants that run with the land". the reason that comes to mind is that a waterfront "block" on the Magnetawan sale earlier this week had a property where all the 9 lot owners in the plan had an easement over the tax sale property. This easement was a restrictive covenant that would not be cleared by the tax sale - it made the lot worthless. We looked no further! Anyone have the results?
I once had a lot that hydro-one wanted. They did not want to own the lot but were willing to pay the full price of the lot for the easement. I sold them the easement. This made it a non buildable lot. I let it go for tax sale and got the full price a second time. Research is so important. I hope this bit of information helps someone.

[netpred]

G2020 is correct about these covenants. An interest that is acquired by tax sale will be subject to these. G2020's example reminds me of a beautiful waterfront property that sold this past summer that was similarly encumbered. Lots of people likely took a long hard look at that property and passed on it. There was one bid on it and my guess is that the "winner" is now sorry about this venture. However, this is not what I had in mind and there is another situation that will defeat (or trump) a tax deed.

My quess to Netpred's question is "restrictive covenants that run with the land". the reason that comes to mind is that a waterfront "block" on the Magnetawan sale earlier this week had a property where all the 9 lot owners in the plan had an easement over the tax sale property. This easement was a restrictive covenant that would not be cleared by the tax sale - it made the lot worthless. We looked no further! Anyone have the results?
I once had a lot that hydro-one wanted. They did not want to own the lot but were willing to pay the full price of the lot for the easement. I sold them the easement. This made it a non buildable lot. I let it go for tax sale and got the full price a second time. Research is so important. I hope this bit of information helps someone.

[g2020]

I guess I had better try another thing that will trump (defeat) a tax sale. Last year in Fonthill there was a fantastic lot that would have been just big enough to build upon. However, the adjoining property owner had fenced off almost half of the lot and had been using it for many years. He wrote a note to the treasurer saying that he owned that portion by adverse possession. The treasurer informed us and we passed. What would you do?

[netpred]

G2020 is as always, correct. Possessory title is not affected by a tax sale. There is still another situation that will defeat a tax sale.