There is always an opportunity in America to make money in just about anything you do. In other parts of the world, if someone says they have an idea to make a million dollars, they are looked at like they are crazy. In America, when you say that, people ask you how. Cities are raking in the revenue from foreclosed homes in need of repairs
CODE VIOLATIONS
If a house is in a state of disrepair, it may be subject to lien notices from the city to bring it up to code. Usually those notices are mailed to the current owner and or bank and then posted to the address. After a certain amount of time, they become special assessment taxes and with time, turn into $$$$ for the Cities.
NUISANCE LIEN
Failure to maintain the premises or affect repairs can result in the city having it done by hiring a licensed contractor and adding additional fees to the bill. It can be converted to a special assessment tax that collects interest in the form of penalties if not paid by a certain date too. It's money in the bank sort of like an investment for the city until paid.
FOR INSTANCE
Here in Riverside, Ca, sometimes a preliminary title report may not pick-up the lien activity because of the timing and circumstances. I had one happen to my client where the City filed a $5000 lien against a property purchased after the purchase fact. I immediately called my title rep who claims I am covered if it wasn't picked up on the pre-lim title report. Well it wasn't and the city swore it was legitimate. They also proceeded with their hearings to collect.
TITLE INSURANCE CAME THROUGH
Title did an investigation and found they inputted the wrong property tax ID number but had the right address. Title says they would fight the city if they pursued this. The city dropped it. They lost a $5000 opportunity. That is how lucrative a foreclosure can be that is not kept up to a city.
Comments(2)