How is the pricing set for these? It seems like a lot of the higher priced ones are vacant lots in not the most up and coming areas. But many of the lower priced ones are. Is it based on taxes due?
How is the pricing set for these? It seems like a lot of the higher priced ones are vacant lots in not the most up and coming areas. But many of the lower priced ones are. Is it based on taxes due?
Yes, the bidding starts at the amount of back taxes that are owed.
quincunx wrote:I see the parking garage at 1122 Locust is on the list. If no one buys, or the owner doesn't pay up, we'll be stuck with that albatross?!
Looks like the garage is split in two parcels and they haven’t paid at 306 N Tucker either (another $100k+) due. I’m sure they’ll pay last minute, but if not I can’t imagine someone wouldn’t buy the property at that steal of a price.
quincunx wrote:Isn't that the one that's falling apart?
Whether it is or not (it looks like it on street view) sounds like a great candidate for a tear down! Some 4-5 story buildings would fit well there and at $230k for the two parcels... would be pretty feasible.
So how does this work... you have the opportunity to bid on these properties outright, even if there's an existing mortgage on a property? Wouldn't that then get super messy legally as to who actually owns it / is responsible for remaining balances?
chaifetz10 wrote:So how does this work... you have the opportunity to bid on these properties outright, even if there's an existing mortgage on a property? Wouldn't that then get super messy legally as to who actually owns it / is responsible for remaining balances?
Liens are tricky, but think tax foreclosures override other liens like mortgages, no?
GoHarvOrGoHome wrote:I'm curious how much that majority of these properties end up going for. 2818 Utah is a steal for less than two grand
My house I live in ended up going for $70k in the tax sale in 2015-16 or so and then they rehabbed it. I imagine the taxes due werent more than a $5-6k when the city took possession.
Anything that is worth anything usually draws a crowd of bidders. I've seen prices go quite high for some properties. On the other hand, we also know how many properties attract no bidders at all.
It is absolutely buyer beware. You should do your research ahead of time. Liens are NOT removed at tax sale. The successful bidder inherits everything on the title, good and bad. Essentially all you have done is pay the taxes. In exchange, as long as a judge approves the sale, you get the property. It's very rare that a mortgage lien would still be in place since they rarely don't notice that taxes have gotten that far behind, but things like MSD liens are rather common. That can get expensive quite quickly.
From that twitter thread you posted, I highly doubt it. Sounds like lots of people were bidding on properties they had never even seen - either assuming they had tenants or that they were in much better shape than they actually are. Especially for those properties in north St. Louis. My guess is that land speculators bought up what they could.
