July 22 we bought a one-bedroom condo in Hammock Beach Resort for our investor. It was won at the Tax Deed sale, which is an auction, run by the Clerk of Court of Flagler County.
The unpaid taxes with some fees were a little over $4K, and we were puzzled by the fact that the previous owner, who bought it from the bank as REO for $53K just 3 years ago, had let it slip into the Tax Deed auction.
The owner was out of country, and this probably was the reason she let it happen.
Our investor is buying for flipping, so we have prepared it minimally for sale, and listed it in both Flagler and Daytona MLS.
On Friday I received a call from the agent in Palm Coast, who told me they had an owner, who wanted to list her unit with them, but they found my listing. Yes, the lady came to the real estate office and tried to list this unit. She had no clue that this condo was sold at the auction, and that she was no longer the owner.
The agent was talking to the lady, and then told us that the lady claimed she paid every penny, and this was a mistake. I had cold sweat.
We asked the agent to relay to the lady, that she had at least a chance to claim the overages from this sale, and they were significant, as we were bidding for every penny, and bought it for $81K. Except for what was owed to the Tax Certificate holder, she could claim the difference and it is about $75K. But the law (as far as I know) only gives 60 days to claim the overage, and Monday, Sept. 22 was the last day.
That Friday afternoon we went to the resort to meet the cleaning lady. When we were inside, we heard someone trying to open the door. I opened the door and the lady walked in and asked us who the hell we were. Yep, she was the previous owner.
She said that she went to the courthouse and got a printout from the tax office and taxes were paid.
Today, on Monday, we got the information from the Tax office. Of course, the taxes were paid. The question was “who paid the taxes?” In 2011 and in 2012 the County sold Tax Certificates for this property, and the Certificate holder initiated Tax sale after holding the tax certificate for 2 years.
The lady did not know about the sale simply because her address in the tax office is an old one in Virginia, while she now live in her native Chile.
I feel so sorry for her. To buy a unit for cash, and then not making sure that every penny is paid, is a shame. She told me she would go to the attorney, and reverse the sale, but this is a dream. She won’t be able to do anything. With tax deed sales in Flagler County there is no redemption period from the moment the money is paid.
Unless, of course, this is a county mistake, which it wasn’t.
Poor lady, poor thing…
P.S. This was added Sept 23 after reading Lenn Harley's comment. While I feel sorry for the lady, if she is a victim, it is not because of the Tax laws, or the way the court operates. She is a victim of her own negligence here first and foremost. It is like with alcoholics. We may feel sorry for them, but booze is not the culprit. They are victims of their own behavior.
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