Question for Tax Sale Auction Winners......

[summerphlox]

Hello,

How many of you tax sale auction winners had your property redeemed by the owner? I am considering going to my first tax sale on Sept 29th 2008, I am just curious on what my chances are of the owner redeeming their property within one year. Please tell me about your experiences. Thank you. 

[Pfm1011]

In Ontario the owner doesnt have a year. He only has until the deed is registered which is about 15 to 20 days. Once the tax deed  is registered on title there is absolutely nothing the owner can do to redeem. The property is yours.

BC runs under the one year rule ( with interest).

All the owners redeem prior to the sale in Ontario which is a pain as you send the bid and  money order etc then the owner redeems a few day before.

[Larry]

ya',  or 2 hours before

[Frank]

Right, I've had a couple that I went through all the trouble for and the owners redeemed 15 minutes before the opening...still had to wait a week to get my certified cheque back.  At an auction you wouldn't have that as the auction simply wouldn't get started at all (the drawback to an auction is that you have to have all the money available to complete the total deal on the spot, as opposed to two weeks later to come up with the 80% balance on a sealed bid).  However, whether it be auction or sealed bid, the owner sitll can redeem anytime until the new deed is registered in your name...which can be several weeks after the sale date...sucks I know, ...but case law rules...unless the government enacts something different...which is not likely.  Are we still having fun.   

[summerphlox]

I wonder why provinces have to have different rules regarding the redemption period? My location is in BC. When I called city hall to see what bidding was like, she told me that only 5 people showed up last year for the tax sale....and now I know why....who would want to plunk down their money when the owner of the house gets an extra year to pay down their tax owing and take it away from you. These people haven't paid their taxes in 3 years, and then they still get an extra year after the tax sale. This is why I am rather hesitant to attend the auction. There were only a total of 7 properties, which is now down to 4 because 3 folks finally decided to go to city hall and pay up. 1 property has an old house, and the remainder are just small lots. Sale is not until Sept 29, I'll have to wait and see what is left for it.

Perhaps I should consider buying elsewhere?

What provinces don't have this one-year redemption law?



Thanks for the replies!

 

[Pfm1011]

The Vancouver Charter allows one year after the date of the auction for the Tax Sale Property to be redeemed from the Tax Sale process. In the event of redemption, the successful bidder will receive interest at the prescribed rate on the monies paid to the date of redemption.

If the property is not redeemed, the process to transfer ownership of the property to the new owner commences

I presume that it would be prime plus 2 or 3 points, Still an ok return on investment

[speedfreeksteve]

Thats why I have just checked with the municipality 2 days before and then sent mine in (if it hasn't been redeemed) by Xpresspost in all the ones I've bid on. Too much hassle getting the bank draft and filling everything out and then having it returned. Especially when the vast majority of decent properties are redeemed.

[GovGuy39]

yes it will be a prime plus 2-3 points interest however you also have to consider the cost of bidding as well which usually runs in like 300-1000$ depending on the property and how much research you do, also consider the investment of your time.

I think i will stay away from these type of auctions.