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Karen Estrada Clay
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1140 Pitt School Rd. Ste. A
Dixon, CA
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Posts Tagged ‘Single buying a bigger home’

Property Research prior to the Auction

Wednesday, April 6th, 2011

Thorough research on all potential purchases is essential.  It is important that you complete this research before the day of the sale.  There are definite risks when buying tax foreclosure and tax-title properties.  Even County owned surplus sales might present risks.  Buying property without doing complete research can result in unwanted and costly surprises.

Warning:  Even the most diligent research efforts may not uncover all difficulties or unexpected problems.

Seminar
The County Treasurer´s Office periodically offers a seminar designed for anyone interested in buying property at Treasurer´s sales.  We help take the mystery and confusion out of County Treasurer property sales.

Where is the best place to begin?
The Treasurer’s Office will provide as much information as it has available.  Title reports, maps, appraisal sheets, and tax information, are some items that will help you in your research.  The Treasurer’s Office is only a starting point though.  Sometimes the information available is minimal.  It is up to the buyer to pursue other resources. Maps, and some other parcel information, may be found by individual research .

Tax-Title & Surplus Sales of Real Property

Tuesday, April 5th, 2011

What does tax-title mean?

Parcels offered for auction at tax foreclosure sales, but not sold, are deeded to the County.  These parcels are called “Tax-Title.”  They may still be purchased from the County through a process called a tax-title sale.  A list of tax-Title is available at the Treasurer’s Office.  Tax-title properties are subject to the same risks as tax foreclosure properties.

What is County owned surplus?

Parcels the County owns, not acquired through tax foreclosure,  County Council has declared a parcel “surplus.”  A list of surplus County owned property will be available at the Treasurer’s Office, from time to time, when so declared.

How is Tax-title or County owned surplus property purchased?

Purchasing tax-title and County owned surplus property is done through public auction, or by private negotiation without a call for bids per RCW 36.35.150, and is called a tax-title sale.  It can take six months or more to bring a parcel to sale.

An application  to purchase county property along with a  deposit fee starts the process.  Each parcel requires a separate form and deposit.  You may, however, request that several parcels be sold as a group.

The Treasurer’s Office will present all applications to the County Property Management Committee at their next meeting.  The committee meets twice a year.  The committee makes a recommendation to retain or sell a parcel, either by public auction or private negotiation.  If the committee recommends retaining the parcel, the applicant’s deposit will be refunded.  If the committee recommends in favor of the sale, a resolution is drafted and submitted to the County Executive.

The County Executive usually forwards the resolution to the  County Council.

The County Council sets a public hearing date and applicants are notified.  At the hearing the Council approves or rejects the sale.  If the sale is rejected, the applicant’s deposit is refunded.

If approved for sale by public auction, the County Treasurer schedules the auction and the applicant is notified of the date, time and location.  The auction is advertised in the local newspaper for three consecutive weeks.

Tax Foreclosure Sales Process for Real Property

Monday, April 4th, 2011

When real property taxes become three years delinquent, the County Treasurer is required by law to begin foreclosure action.  A certificate of delinquency is filed with the Superior Court.  Taxes, interest, penalties, and foreclosure costs begin to accrue.

A title search is conducted for each parcel.  As required by law, all parties with recorded legal interest (as revealed by the title search) are served with a notice and summons by certified or registered mail. 

The  Treasurer receives a judgment from Superior Court foreclosing on the tax liens and ordering the sale of those parcels.  Parcels being foreclosed can be redeemed by their owners, or other parties with recorded legal interest, through the close of business on the day before the sale.  That is, they are allowed to pay all taxes, interest, penalties, costs and fees due, thus removing their parcel from the sale.   Can Prior Owners Redeem Their Property After Foreclosure?

Prior owners have no rights to the property after foreclosure, UNLESS they were a minor or legally incompetent.  Minors and legal incompetents have the right to redeem anytime within three years from the date of the foreclosure sale.  They redeem the property by paying the sales price, plus interest on the tax amount.  Any improvements made by the new owner would also be reimbursed. (RCW 84.64.070)

What happens to all of the property liens?

Generally, all liens on foreclosed property are extinguished.  However, the County can make no guarantees that the prior lienholders will honor this extinguishment.  IRS liens are usually also extinguished, but they are subject to a 120 day redemption period.  If prior lienholders attempt to collect on their liens after the property has been foreclosed on, it is entirely up to the new owner to defend against these claims. 

What happens to the excess proceeds?

If a parcel is sold at auction for more than the amount owing, the previous title owner of record can claim the surplus money.  This is the party who held title on the day that we filed the Certificate of Delinquency.  They have up to three years from the date of the sale to make their claim.  (RCW 84.64.080 and RCW 63.29.350)

Real Property Auctions

Sunday, April 3rd, 2011

The Whatcom County Treasurer may conduct several property auctions per year, as necessary.  Different types of property can be sold at these sales. 

The number of parcels auctioned varies greatly from sale to sale.  An auction may have anywhere from one parcel to hundreds of parcels.  Because they vary so much in size, the location of each auction may also change to accommodate the number of persons attending.  When we have an auction coming up, the foreclosure minimum bid list and/or the tax title minimum bid list can be found here.

No Guarantees
Anyone considering buying property at a Treasurer’s sale should be aware that there is risk.  When selling parcels, the County conveys the entirety of the interest that it is legally capable of transferring, unless otherwise noted.  However, the County does not guarantee or provide warranty as to the extent of the interest.  The County makes no guarantees whatsoever on parcels sold at Treasurer’s sales.

Researching properties
Proceed to our property auction research page for additional research information.

The following statement applies to all Treasurer’s real property sales:
“This is a buyer beware sale.  All sales are final.  We offer the parcels on a “where is” and “as is” basis.  The County makes no representation of warranty, express or implied, nor any guarantee of warranty, express or implied, as to the condition of title to any property, nor the physical condition of any property or it’s fitness for any use or purpose.”

How does the auction work?
Proceed to our property auction process page for additional information on the process.

Auctions

Saturday, April 2nd, 2011

The  Treasurer may conduct several property auctions per year, as necessary. Different types of property can be sold at each of these sales. The number of parcels, or items auctioned, varies greatly from sale to sale. An auction may have anywhere from one item, to hundreds of items. Because they vary so much, the location of each auction may change to accommodate the number of persons attending, or the type of items being auctioned.

 No Guarantees

Anyone considering buying property at a Treasurer’s sale should be aware that there is risk.  When selling parcels, the County conveys the entirety of the interest that it is legally capable of transferring, unless otherwise noted.  However, the County does not guarantee or provide warranty as to the extent of the interest.  The County makes no guarantees whatsoever on parcels sold at Treasurer’s sales.

The following statement applies to all Treasurer’s property sales:

“This is a buyer beware sale.  All sales are final.  We offer the parcels on a ‘where is’ and ‘as is’ basis.  The County makes no representation of warranty, express or implied, nor any guarantee of warranty, express or implied, as to the condition of title to any property, nor the physical condition of any property or it’s fitness for any use or purpose.

A HOME INSPECTION REPORT:LIST OF POSSIBLE PROBLEMS

Friday, December 31st, 2010

PROBLEMS

The following are some typical problems or occurrences to look for in the major components and systems of the home.

ROOF
Is the ridge (peak) showing a sag, or is it straight and level?
Is the roof sagging between the rafters or trusses?
Are there any signs of deterioration of asphalt shingles, such as curling, warping, broken edges, rounded corners or key holes(slits) becoming wider that normal?
Any loose flashing’s, at the chimney, roof-to-wall connection or elsewhere?
Does the wooden roof deck appear rotten or delaminate under the last row of shingles?
Are there any roof vents visible?

CHIMNEYS
Is the masonry cap cracked or broken?
Are any bricks flaking or missing? Mortar missing?
Is the chimney leaning?

SOFFITS AND FASCIA
Note whether the soffit and fascia are wood, aluminum or plastic.
Any loose or missing sections?
If wood, are there any paint problems? Any visible rot?

GUTTERS AND DOWNSPOUTS
Ensure gutters slope down toward downspouts.
Any rust or peeling paint?
Apparent leaks or loose/sagging sections?
Are the downspouts extended away from the foundations?

WALL COVERINGS
Look for missing mortar
Are the bricks flaking or cracking?
Look for loose, missing or rotten siding, deteriorated paint.>
Does the siding appear new? Does it hide the foundation wall?
Exterior walls bowed, bulged or leaning?

WINDOWS AND DOORS
Look for problems with paint or caulking, and rotted wood components.
Are the windows new or older? Are they the original windows? How old are they?

PORCHES AND DECKS
Cracking or flaking masonry?
Check for paint problems, rotted wood, and wood-earth contact.
Note any settlement or separation from the house.
Inspect the underside, if accessible.

FOUNDATIONS
Check for cracks, flaking or damaged masonry.
Note any water markings and efflorescence (whitish, chalky substance)
Any bowing, bulging or other irregularities?
Soft mortar?

LOT AREA
Does the grade slope away from the house?
Any settled/low areas next to the foundation, or cracked walks/driveway?
Is the property lower than the street or neighboring properties?

BASEMENT
Note any evidence of water penetration (stains, mildew/odors, efflorescence, loose tiles etc.)

FLOORS
Check for deteriorated coverings or cracked ceramics.
Any water staining or other damage?
Sloping or sagging?

WALLS
Randomly sample to check that the windows and doors work.
Are the walls straight vertically and horizontally?
Look for cracked or loose plaster.
Look for stains, physical damage or previous repair evidence.
Any drywall seams or nails showing?

CEILINGS
Check for cracks in the plaster or loose, sagging plaster.
Look for stains, mechanical damage or evidence of previous repair.
Seams or nails showing?

BATHROOMS AND KITCHENS
Check that all fixtures are secure.
Are there any cracks in the fixtures?
Note the condition of the tiles and caulking in the tub/shower area.
Are the faucets working? Do they leak? Sufficient water pressure?
Look for staining and rot under the counter-tops
Randomly sample the operation of the cabinet doors and drawers.

ELECTRO-MECHANICAL CONSIDERATIONS
Type, style and age of heating & cooling systems. When were they last inspected or serviced?
Type of water supply piping and drains – any visible rust and corrosion?
Size and age of electrical service – are the outlets grounded? Visible wiring in good condition?
Have there been any upgrades?

THE HOME INSPECTION SYSTEM

Thursday, December 30th, 2010

THE HOME INSPECTION SYSTEM

THE BIG PICTURE

The first step in inspecting a home is to examine the big picture for the home. Notice the area the home is located in. Are there other homes of similar age and construction details relative to the home you are inspecting? A comparison will give you a general idea of the up keep of the home. Have there been significant modifications to the exterior of the building and if so, how is the workmanship?

EXTERIOR

Start at the exterior front of the house and work your way around the house (clockwise or counter-clockwise) at a distance which allows you to view a complete face comfortably. On each face (front, sides, rear) start your visual inspection at the top of the structure and work your way down to the ground and lot area. As an example, you would start at the front and note the roof and chimneys, the gutters, fascia and soffit’s. Then, moving down the exterior wall coverings (brick, wood, aluminum), noting windows, doors, etc. Examine any porches or decks down to the foundation, then the grade or slope of the lot area, followed by any coverings, such as flower beds, walkway’s, interlocking brick, driveways, etc. Move closer to the house, to examine more closely any details which may have attracted your attention, without skipping any items. Having completed the front, move to the side of the house and start the same procedure (roof to ground).

INTERIOR

On the interior, begin your inspection in the basement and then follow the system throughout each floor in the house. The system for inspecting the interior is to begin with the floor, go to the walls and then the ceiling, and then consider any appliances or other items in the room. Move from room to room, always in the same direction (clockwise or counter-clockwise) so as to not miss any areas. If you see a door, open it!
In the utility room in the basement, first notice the floor, the walls (possibly the foundation walls are visible here), then the ceiling (floor joists may be visible), then go to the furnace, hot water heater, electrical panel, plumbing system, etc. When inspecting the floors, walls and ceilings, scan the entire areathat is visible, not just one section.
In a finished room you would notice the floors, walls (including windows) and ceiling. Next look for the heat sources, electrical outlets and switches, fireplaces, closets etc. In bathroom or kitchen, notice the floor, walls and ceiling, then the plumbing fixtures.

CONDITION

While performing the inspection, whether at the exterior, the interior or one of the mechanical systems, note the system first, then its relative condition. For example, if you were inspecting a wall on the interior of the home you would first note that the wall is plaster, and then examine the wall for cracks and irregularities.

Home Inspection Checklist

Wednesday, December 29th, 2010

Home Inspection Checklist

 

Home Inspection Essentials

Although architectural details, wall and floor coverings, modern conveniences and many other factors are important in the buying decision, the focus of this inspection is on the structural, mechanical, electrical condition of the property.

The inspection is designed to give the real estate agent or prospective purchaser a system to detect some of the readily accessible major flaws or deficiencies in the significant components and systems of a home. It is not designed to, nor does it profess to facilitate detection of all flaws, problems or occurrences that might exist in any given home.

To maximize time efficiency and to ensure all of the major sections of the home are take into consideration, we have developed a systematized approach to the inspection. This is a simplified overview of systems that professional home inspectors use when they are inspecting a home.

To assist you in following the system, we have provided a checklist that will guide you through your own inspection.

Home Inspection Items Not Inspected

A home inspector’s standard practice typically does not include the following, for which a specific license to inspect and identify is required:

  • Asbestos
  • Radon Gas
  • Lead Paint
  • Toxic Mold
  • Pest Control

Home Inspectors may suggest some important Environmental Testing for your property.

First Time Home Buyer Loan Pitfalls

Tuesday, December 28th, 2010

For some first time home buyers, these programs are perfect. They open the door to home ownership where a family would not have been able to buy a home. Communities also benefit from first time home buyer loans – homeowners take care of their property, get involved, and contribute to the economy. Nevertheless, first time home buyer loans can be the wrong choice in some cases.

With a subsidized first time home buyer loan, you face some challenges:

  • Lower value home may not be the home you want
  • You might lose some of the benefits of the program if you sell your home too soon
  • You may have to pay recapture tax for some of the benefits you received
  • You may be limited to a short list of loan types (only 30 year fixed rate mortgages for example)
  • You may have to share increased home values with the program

Given these restrictions, you may do best to avoid subsidized first time home buyer loans. Patrick Schwerdtfeger, a California mortgage broker, notes that you’ll probably come out ahead using a plain-vanilla mortgage if you’ve got decent credit (Mr. Schwerdtfeger also does the Beyond the Rate podcast – required listening for first time home buyers). With a FICO credit score above 720, you probably won’t see an advantage with the subsidized first time home buyer loan. Once you get below 680, the subsidized program will start to look better. These days, you can get traditional mortgages or FHA loans with very little down.

  • How FHA Loans Work

The best thing to do is to explore all your options. Take a look at what your traditional mortgage lender is offering, and compare it to the subsidized first time home buyer loans. Once you see how the numbers compare, consider the cost of flexibility.

First Time Home Buyer Loan Restrictions

Monday, December 27th, 2010

Most programs put a dollar limit on the property you’re buying. You probably can’t use a first time home buyer loan to buy the more expensive properties in your area. Instead, you’ll be limited to properties on the lower end of the spectrum. Again, the idea is to benefit people who have the most need.

You also have to live in the home as your primary residence. If you’re going to rent the place out, don’t use the first time home buyer loan. Finally, the home you buy most likely has to meet some physical requirements. It must be in good condition and free from any safety hazards (such as lead-based paint, for example).

Market Recap

  • Avg. Sales Price: 379,000

  • Avg. Days on Market: 69

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