66. Another Path to Acquire Property in Pennsylvania and Exploit Pennsylvanians.

Here is how  to exploit Pennsylvanians anywhere and Sharonites with a judicial tax sale. 

A Judicial tax sale differs from a private tax sale in that tax liens AND private mortgages / private loan liens are wiped off the ledger. Gone. Poof. 

But, an applicant / bidder for a property on the Tax Claim Office list of eligible properties for private tax sale or judicial must guarantee that they will pay the administrative costs to notify all parties of interest for the judicial sale. The parties are the owner of record and the lien holders. They can pay the taxes owed and protect their interest in the property. There is a likelihood that the parties of interest will not respond to any of the means to make contact as provided by Pennsylvania law. 

The Tax Claim Office engages an attorney for the title search and the multiple attempts to stir up a party of interest leads to the judicial tax sale. The private tax sale is in fact private as public notice of the private tax sale happens a month before the September private tax sale and notice is limited to the County Bar Association legal advertisements. 

In contrast, the judicial sale is publicized on the Tax Claim Office website and any person willing to pay the administrative costs plus their winning bid amount can buy the lien free (tax and private liens erased) property in an actual competitive auction. The purchase price no longer is peanut$ as in a private tax sale. But, it is still a bargain considering that a new foundation for a typical house is in the range of $5 to $10,000. Add in the water, sewer and gas hookup. A blighted house is at least the value of its foundation, its utility hookups and its structure frame. Properties sold at judicial tax sale typically clear for less than $20,000. 

The new owner can exploit at will as described for a private tax sale. But now, there is an opportunity to use the property as loan collateral. Sloppy loan approval procedures allow a positive loan decision for the property to be collateral.

No liens. 

There is a big glitch with attorney competence in the multiple steps leading to the judicial tax sale. Here is a glitch example: A respectable judicial sale buyer / fixer upper / flipper-seller learned of the defect in the work of an attorney when the new buyer could not get title insurance for a mortgage. No title insurance. No mortgage. No sale. The flipper-buyer had to engage out of county counsel to sue the errant attorney for the incompetence and costs caused by his incompetence. The defect on the title was corrected in order to get tile insurance. But,  it was a delay of a year. The basis for the attorney malfeasance, misfeasance and nonfeasance might have been youthful inexperience, alcoholism, substance abuse or simple laziness / stupidity. Who knows? Well, the attorney knows. THERE ARE NO guarantees given by a County in a judicial tax sale other than elimination of the tax liens.

65. How to Acquire Properties Through PA County PRIVATE TAX SALE and Pursue Exploitive Business Practices

Ever wonder how to exploit Pennsylvanians everywhere and Sharonites of limited resources by a acquiring a house for peanuts through a County Tax Claim Bureau? Here is how:

Make a peanut$ application / bid for any property on the list of properties eligible for private tax sale. The peanut$ bid is for the private tax sale ONLY. For the private tax sale the the back taxes are wiped clean. No more tax lien. It does not matter if the owed taxes are in five figures, offer a pallet load of peanut$, say $200. You will get next September in Mercer County where this writer lives at the scheduled private tax sale a property without a tax lien but any and all private liens will remain. 

No problem. You are not interested in getting a buyer and a new mortgage. No lender is going to loan on a property littered with historic private liens. You want to exploit a Pennsylvanian of limited resources to get rental money from them. You might patch it together to meet the Section 8 landlord requirements. The Housing Authority makes a cursory inspection. 

Or, maybe you want to use the property for illegal purposes. Maybe you want to create a sham to launder money. Get enough $200 addresses and dirty money can be laundered as if it were rent money as a book keeping entry. Forget about actual tenants. The address could be a place for persons with a proclivity towards a chaotic practice of illegal drug use, or a place to stash weapons, or a place to hide stolen items, or a place for deliveries of illicit items.......just for $200. 

Now that you have the property through a private tax sale you need not be bothered with actually paying real estate taxes into the future. You can exploit the property and be tax delinquent for two years until there is recourse. 

It just is immoral but not illegal not to pay the real estate taxes. Even then the Tax Claim Office allows "payment plans." Now if you want to be a Section 8 landlord, the standards required are easily met with band aid repairs. If your tenant is Section 8 qualified, even then, nothing requires you to be tax compliant. Now, if your tenant has school age children the tenant is not paying taxes through their rental payments because you are not. 

This is how you can exploit poor people and frolic and enjoy a living standard through property lawfully attained but immorally managed.