Page 154 - Judgment Enforce Course

Judgment Enforcement – The Step-by-Step Course

My possible actions:

1. Buy the 16K tax lien at auction for 2-6K. And sit on
it.

2. Buy the tax lien at auction and offer her an
appropriate amount for her property (maybe 20-30-40K
or less), where the owner finances it to me at a low rate.

3. Then I rent it out or fix it up some and put it on the market; And pay off the note.

Important: Obviously there are risks. We have to know the area, the market in the area,
the mood of the country, and the real estate trendings.

Point: Great opportunities are out there, and we should keep an eye out for them.

ANOTHER EXAMPLE: Some years ago I was contacted by a number of investors to
find the owners of certain properties, most of which were bare land where the taxes
hadn’t been paid for years. My job was to find the owners who hadn’t been in touch
with the properties in years, maybe decades. Or, a successor relative, if the person
was now deceased.

These were all properties that had tax liens on them, and the people contacting me
wanted to buy those tax liens at reduced amounts and give the owner a little to get if
off his or her back and credit report. My understanding was that the tax amounts
were low, maybe even in the 100’s of dollars. But it could be a good investment,

depending on the location. The investors searched the tax liens county by county in a
given state, made a judgment about what the value of each would be in 5-10 years,
and bought the ones that seemed right. Again, it took research and knowledge about
the area and economic trends.

Point: Some JD’s too, even those who the better debtor, may have such properties,
and you’ll come across them as you do your research. Might be a good opportunity
there.

Step 2. Buying a judgment lien against a property

I’ve seen properties with judgment liens on them that make it nearly impossible
for the homeowner to sell. Why not take assignment on the judgment whose lien is in
“first place” or buy it outright? You can then force a sale of the property, and the
judgment liens behind you will likely be wiped out.

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