Just curious--

Discussion in 'Homesteading Questions' started by ceresone, Nov 11, 2006.

  1. ceresone

    ceresone Well-Known Member Supporter

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    Neighbors on both sides of us are losing their farms for non-payment. they are to be sold on the courthouse steps soon.when they're sold, will they still owe the balance, if it dosent bring enough to pay it off?i know this happens with cars, just dont know how it works with land--or will it perhaps not sell if it dosent bring enough. how does this work?
    incidentally, they're 30 and 40 acres, with houses.
     
  2. blufford

    blufford Well-Known Member Supporter

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    It would depend upon the state, and you don't have any showing.
     

  3. ceresone

    ceresone Well-Known Member Supporter

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    Sorry, its in Missouri, south central
     
  4. Dubai Vol

    Dubai Vol Well-Known Member

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    Don't know the details, but when that sort of thing happens, there is generally a reason. Certainly wouldn't hurt to be present at the sale, but do your homework first. If they couldn't sell the land for enough to pay the taxes, that tells me something. Might be worth more to you, but you have to decide that.
     
  5. mistletoad

    mistletoad Well-Known Member Supporter

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    I believe Missouri does not allow deficiency judgements, so your neighbours would not have any balance to pay.
     
  6. Maura

    Maura Well-Known Member Supporter

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    Contact the Treasurer's office, they probably know. It may be that after you buy the property, they have a certain amount of time to come back and pay the back taxes, if it is going for taxes. If a bank is involved, they are just happy to get the property off their book, but call the bank anyway and ask. The name of the bank should be in the newspaper.
     
  7. uncle Will in In.

    uncle Will in In. Well-Known Member Supporter

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    Here they have tax sales, and Sheriff sales. If you don't pay your taxes the county sells the place for back taxes. They have annual sales. The one who owes the taxes has a grace period to repay the bidder the taxes plus interest.
    They also have Sheriff sales. At these the property is being auctioned off by the sheriff because the former owner was unable to pay the mortgage paymets. The mortgage holder is selling the property through the Sheriff who will give a quit claim deed to the highest bidder. The Mortgage holder will bid against you until they get the bid up to the amount they need to recover. Many of these are bid off to the mortgage holder. Basicly the Sheriff sale gives the mortgage holder a clear title to the property, and eliminates the former purchasers claim to it.
     
  8. fantasymaker

    fantasymaker Well-Known Member

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    Doest sound likea tax sale does it?
     
  9. ceresone

    ceresone Well-Known Member Supporter

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    No, it dosent say tax sale, or sheriffs sale, says mortgage holders sale, for non-payment of note--sadly, we're not in a position to bid, but was wondering if i should mention the sales to others. one is a 30 acre farm, the others a 40 acre, both with houses. one young man has 5 children, but it dosent seem to concern him, rest of his extended family dosent even know it, cause they dont read newspapers.
     
  10. fantasymaker

    fantasymaker Well-Known Member

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    Imsure the owners know about it if they are at all easy to find
     
  11. haypoint

    haypoint Unpaid, Volunteer Devil's Advocate Supporter

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    Sadly, bank forclosurers are becoming more common. Here in Michigan, with the economy so closely attached to automobiles, we have lots of folks losing their jobs.
    Generaly, the Bank is required to offer the property up at a sale on the courthouse steps. They'll have someone there to bid it up to cover their loan. If other bids don't cover, or get real close, the Bank gets it. The family still has 6 months to repay the loan and keep the property. Then the bank will list the property thru a Realtor. No real bargain here.
    The only way to get a deal is if you offer the family enough to cover their morgage. IF the property is worth more to you than is owed on it. Often times people finance vacations, speed boats, etc, using their homes for collateral, eventually owing more than its worth.
     
  12. Spinner

    Spinner Well-Known Member

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    Property values are dropping so they may owe more on it than it's worth now. Sad, but I think we are going to see a lot more of this in the near future.

    I know a few folks who had property they couldn't sale so they borrowed the max they could, then defaulted on the loan, letting the bank have it. Ruined their credit, but they didn't care, they just wanted to get their money out of the place before they lost it and got nothing. They are setting on the money now, waiting for prices to tank, planning to buy up more when the time is right. Others are setting on the property, borrowing all they can as often as possible, letting rent make the payments. When prices fall so far that rent will no longer make the payments, they will let the bank have it. Not an ethical way to do business, but they will probably end up rich when they are done. :(