This month, the city of Boise told Marcella Boylan that if she didn't pay $241.55 owed for trash collection, her name would be published in a full-page newspaper ad to call attention to scofflaws.

But Boylan never saw the letter. The 92-year-old's nursing home caretakers forwarded it - like all her mail - to her former daughter-in-law, Caroline Werner.

And Boylan certainly didn't rack up those late fees - she suffers from Alzheimer's and hasn't lived in her Sunset Avenue house in years.

In fact, that house should be sitting vacant - no one has legally lived there since Boylan's grandson died in 2006.

But a man who never met Boylan and - according to county officials - has no legal claim on the home, has been renting it out for almost two years.

"I call the city and discontinue the trash service, and he calls and starts it up again," said Werner, who has power of attorney for Boylan and what's left of her estate.

Since the Boise woman's husband and her three children are deceased, Werner is the only one left to look after the house, but she lives in Colorado.

Though she has contacted the police to remove illegal renters, more unsuspecting tenants move in.

"I feel so helpless," Werner says. "I've just kind of given up."

IS THERE A 'TAX DEED'?

On May 16, 2007, David Foldesi walked into the Ada County Courthouse and paid $8,875.62 in delinquent property taxes on Boylan's house.

Both Boylan and her husband, Dudley, who died in 2005, had faced serious health problems - and the costs added up.

When the taxes weren't paid on the house, the county started the steps toward putting it up for public auction - a process called a tax deed sale. The online auction was scheduled for May 19-21, 2007.

Once the county starts the tax-deed process, the county takes ownership of the property until it is sold or the delinquent taxes are paid, whichever comes first. In Boylan's case, the delinquent taxes were paid, by Foldesi, just three days before the auction.

Once the delinquent taxes were paid, the county canceled the auction and granted a "redemption deed" to Boylan. Foldesi is named in the redemption deed as the person who paid the delinquent taxes.

But a redemption deed does not convey ownership of, or access to, a property - and neither does paying somebody's property taxes, county officials say.

When Foldesi paid the taxes, that did "nothing more in this case than cancel the tax deed and all related proceedings," Ada County Treasurer Cecil Ingram said.

Foldesi thinks differently.

When asked who gave him permission to rent out Boylan's house, he said: "The owners. Who are the owners? The tax deed holder."

But neither Foldesi nor anyone else can hold a tax deed to the house, because there is no tax deed for this property, according to the county. Only if the house had gone to auction could someone have bought the tax deed, which would have given that person ownership over the home.

Some states do sell tax deeds or tax liens without an auction giving ownership to the person who pays off the tax bills. That may be part of the confusion.

Foldesi spoke only briefly to the Statesman before hanging up. He has not returned subsequent calls, including requests to see a tax deed for the house or a certificate of sale from the county. Foldesi and his partner, Debbie Smith, own Boobies restaurant on Ustick Road.

TENANTS CAUGHT UNAWARE

Werner first found out about the unexpected house guests when a neighbor of the Sunset home notified her in October 2007 that someone was living in the house.

Werner called the Ada County assessor's office and verified the property was still in Boylan's name. She then contacted the police and filed a trespassing complaint.

The tenant did not know she was living there illegally and left willingly.

But Foldesi told the investigating officer that the redemption deed gave him claim to the property and he could do with it as he saw fit, according to the police report.

The police notified the county in February 2008 that Foldesi said he intended to sue the county over the house. So far, he hasn't.

Werner still does not know how Foldesi gained access to house. She never gave him keys.

Shortly after the police evicted the first tenant, Foldesi rented the house to Melony Velasquez.

Velasquez, who lived there from February to October 2008, said she thought Foldesi owned the house. When she moved out, Foldesi immediately rented it again. That tenant, who asked not to be named, was living in the house until this week.

When he learned from the Statesman what was going on, he called Werner, apologized and told her he would move out immediately, Werner said. She feels bad for the tenants who thought they were legitimately renting a house.

WHERE SHOULD THE MONEY GO?

Werner said she is at wit's end. She cannot afford to hire an attorney or someone to monitor the house, and Boylan's estate does not have any money for legal action against Foldesi.

Werner can't sell the house - a reverse mortgage helps pay for Boylan's long-term care. Nor can she rent it out, because the income could make Boylan ineligible for Medicaid.

Between Boylan and her husband, the bills have mounted. The Idaho Department of Health and Welfare has a $498,905 lien against Boylan and her house for money the state paid for the couple's nursing facility care.

When Boylan dies, the state will get the house, which is currently assessed at $172,100.

Werner said she could keep asking the police to remove trespassers or pursue getting Foldesi banned from the property, but she doesn't think it will do any good.

"How am I going to enforce it?" she said. "I am in Denver. He will just go back in again."

Werner estimates Foldesi has been renting out the house for almost two years. According to past tenants and the police report, he has charged between $550 and $700 a month. She thinks any income derived from the house should be going to pay for Boylan's medical costs.

"I hope he knows he is liable to Medicaid for every dime he made off the property," Werner said. "I hope they go after him."

I printed the story in its entirety; it is too good not too. http://www.idahostatesman.com/boise/story/915580.html?pageNum=11&&&&&&&&&&mi_pluck_action=page_nav#Comments_Container

Coach Mitch’s REFLECTIONS

There is always one in the crowd!

The proverbial bad apple shows itself here. Situations like this are how the entire barrel gets a bad name.

Adverse Possession

A strategy called Adverse Possession is similar. This situation occurs when a property is abandoned and a non-owning party takes control of the property, pays its bills, its upkeep, etc., and eventually, through a legal process, gets legal title.

Adverse Possession is rarely done because of the time frame involved, 5 to 15 years, depending on the state, and the risks.

The actual owners or their legal heirs or some other person who has legal standing can appear at any time, reclaim the property, and all monies invested are lost, with no way to pursue any action to reclaim investments.

http://answers.uslegal.com/questions.php?q=309

If attempting Adverse Possession, be sure to learn and understand the laws of the state and be sure to engage an attorney competent in adverse possession law.

This situation

Be aware that this situation, while not common, is known to happen. There are many empty properties being used for nefarious purposes.

The reverse mortgage is commonly used as a way to pay nursing home bills and end of life costs. The bank will be in first mortgage position, but the government tax lien is in first position, period. The only lien that comes before a mortgage is a government tax lien. That is why tax lien investing can be seen as safe.

The bank’s agenda

Why didn’t the bank pay the back taxes? The bank usually gets a report when the taxes are delinquent and the bank normally pays the back taxes to protect their investment, the mortgage.

In this case, the government has liens against the property for much more than the property is worth. Therefore, if the bank did pursue a mortgage foreclosure auction, the bank would not receive any compensation. Any auction proceeds would go to the first lien holder, the state.

If the bank did pursue a mortgage foreclosure, and if Ms. Werner or the nursing home had informed the press, the bad publicity would potentially have besmirched the bank.

The bank is behind a rock and in a hard place. The bank must continue making the monthly payment to the nursing home, even though the bank will never get the property, and even though the bank continues to lose money on this transaction with each monthly payment.

The bank’s best course

In this situation, the best course of action for the bank was - let the county pursue a tax deed auction.

The county is required by statute to take a property to tax sale if the taxes are not paid. Upon a tax deed auction, the mortgage is eliminated and so is any obligation the bank has to make monthly payments to the nursing home.

The best laid plans

Unfortunately, for the bank, an investor came in and paid the taxes. The government does not care if the payer has an interest in the property. The government will take money any way it can get it.

The investor made a calculated bet. He figured that he could make more money than the investment. Of course, the investor knew that he does not have legal title, especially after the first tenant was evicted. However, the investor is nervy. In this case, that nerve may be foolhardy, as a prosecutor may pursue an action.

What could be done?

Ms. Werner could put the home into a trust, as per the Garn / St. Germain Act, changing the ownership while still keeping the mortgage intact, rent out the home, have the net income put into an account and use it to make Mrs. Boylan’s life a bit more comfortable. In this manner, the neighborhood would not have a blighted home bringing down property values.

Government does not follow-up

Even if there is some slight technical Medicare law illegality, the government still has to connect the dots. Medicare does not have any oversight, as evidenced by the amount of fraud in the system. Medicare would never find out that the property is throwing off income. Even if Medicare did, the government is getting the property and Mrs. Boylan would be put on welfare, still subject to Medicare.

Take care,

Mitchell Goldstein – Coach Mitch

518-439-6100 until midnight EST

Tax delinquent real estate, tax liens, and tax deeds are a great way to invest in real estate. Pre-foreclosure and foreclosure investing is significantly enhanced by Coach Mitch's system.

The Wichita Eagle Kansas, MO

Auction of foreclosure properties draws 200

…at the Sheriff's tax foreclosure sale Monday afternoon at the Sedgwick County Extension Education Center. The Sheriff's office auctioned 75 properties .

• Gallery: Sedgwick County's tax foreclosure auction

To the 200 people who showed up Monday to bid on Sedgwick County property in tax foreclosure, Chris McElgunn voiced a warning.

"It's buyer beware," McElgunn told potential bidders.

They came to … bid on about 76 parcels: some vacant lots, some with buildings or homes, much of them "distressed." The property goes to the highest bidder regardless of the amount of taxes owed.

McElgunn, a lawyer retained by the county to handle tax foreclosures, explained that the property was being sold as is, with no guarantees. He told the audience he hoped they had done their homework — that they knew the condition of the property they were bidding on. And that if they made the high bid, the property would become their responsibility.

One of the winning bidders, who asked that his name not be used, smiled and said almost giddily that he "jumped in with both feet. I didn't do my homework."

He said he paid $500 for a piece of residential property in the 1800 block of South Water. For all he knew, it could be a vacant lot. Still, he said, "An empty lot for $500 ain't bad, especially in the city of Wichita. I guess I'll find out."

County officials moved the …tax foreclosure sales to a massive hall at the extension center because … The sale had outgrown space in a jury room at the Sedgwick County Courthouse.

One of the experienced bidders, Fred Byers, had his eye on a home that ended up going for $47,500.

Byers had done his homework. He had looked at the home and learned that it had extensive damage from pets and needed new plumbing and heating and air equipment. He was prepared to pay $30,000, no more.

See the entire article: http://www.kansas.com/759/story/952439.html

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Coach Mitch’s REFLECTIONS

It seems that the county is good at disclaiming. The county does not want to be responsible for anything, yet they want you to be very responsible. The county wants nothing to do with anything having to do with the property – except to take it from the owner and sell it for the back taxes.

Disclaimer’s Galore

See the Auction Terms and Conditions Notice for a complete understanding of what the county will not do and what you are required to do. I’ve included a link to the Albany County, NY Notice which approximates what a county typically requires. http://www.albanycounty.com/auction/default.asp?id=861

Buyer Beware – Take this seriously

10) All properties, including any buildings or other improvements located thereon, are offered for sale and sold by the County "AS IS" without representation or warranty of any kind as to their condition, excepting where applicable, the HUD Lead Paint Disclosure for Residential Properties and any other disclosures required by law.

(BTW, one of the reasons that there are so many dilapidated buildings, is that the government requires that lead paint be remediated, i.e. removed. The expense is huge. Upon being ticketed by building inspectors, rather than take on this immense expense, owners abandon their buildings and do not pay their mortgages nor property taxes. Yet, the county does not take on this situation that they created by remediating the building. Rather, they let the building sit, act as a haven for crack users, and pass the requirements on to the next owner.)

Continuing with 10) Prospective bidders to whom the condition of a property is relevant…consider having an inspector, contractor, architect, and/or engineer inspect the property prior to bidding.

The NYS Uniform Vendor Purchaser Risk Act shall apply to public auction sales. (Meaning that you engage at your own risk.)

The right, title, interest, claim, lien, and equity of redemption of all persons therein have been presumptively extinguished under said provisions of law, which presumption will become conclusive after two years from the date of the recording of the deed thereof to the purchaser.

(The county takes the property, sells it, and the winning bidder still has to wait two years to gain clear title so that a regular mortgage can be obtained upon a refinance or resale.)

The deed conveying title to the purchaser will be a quit claim deed from the County of Albany containing the assessment roll description of the parcel… and not a metes and bounds description. However, title conveyed to purchaser is subject to: (a) …an accurate survey; (b) all applicable zoning/ land use/ and building code regulations; (c) and easements, covenants, conditions and rights-of-way of record existing at the time of the levy of the tax, (d) current taxes and assessments and water and sewer charges; and e) any conditions established by the County Executive …

(Neither clear deed nor a good boundary is sold, but the county does require the new owner follow all law, on a property that one cannot even determine the boundaries without going to considerable expense.)

Since marketable and/or insurable title to and the actual dimensions and physical location of these properties is not warranted by the County, prospective bidders…are cautioned to consider having a title search and/or survey of the property performed… prior to bidding.

13) In addition to the purchase price, the approved bidder must pay closing costs… recording the deed and filing any related documentation. Closing costs will also include the title search fee paid by the County (currently $185).

The hypocrisy revealed

It is staggering. The county assumes no risk, allows the new owner no exclusion from any risk, recommends the bidder get a title search and a survey, and the county will not let the new owner have use of the existing title search – a search for which the new owner was required to pay $185.

Only government can do these things and, with a straight face, say they are working for the public good.

Oh yes, I almost forgot the biggest fraud; if the successful bid is higher than the taxes owed, the county keeps the over bid. The county taxes your property, and upon no payment, takes the property, sells it at retail, and keeps the profits.

BTW

Using Coach Mitch’s Ridiculously Simple System removes these risks because you are buying the property directly from the tax distressed owner, prior to the tax auction.

You get marketable title with a warranty deed, you can walk the metes and bounds, you don’t have to worry for two years that a relative will dispute the title, you can thoroughly inspect the property at your leisure, you get a wonderful deal, because the owner is going to lose the property to the tax auction, and you can refinance or sell immediately.

Why bother with the tax sales auction, where you have to bid against many others and, in addition, assume all the risks that the county will not?

Caveat Emptor –

Mitchell Goldstein – Coach Mitch

518-439-6100 until midnight EST

Tax delinquent real estate, tax liens, and tax deeds are a great way to invest in real estate. Pre-foreclosure and foreclosure investing is significantly enhanced by Coach Mitch's system.

The Republican SPRINGFIELD, MASS

Planning Commission moving into new offices

Thursday, September 03, 2009

Developers …showed off a transformed former Hooters building at 60 Congress St. Wednesday, days before the Pioneer Valley Planning Commission will move into the building as the first tenant.

Mirkin, … and Gagliarducci bought 60 Congress St. at a tax foreclosure auction in June 2008 for $605,000. The 28,500-square-foot building had been home to a Hooters franchise… Before that, it had been home to Spaghetti Warehouse. It was also once a commercial laundry.

Mirkin and Gagliarducci said the entire project cost $4 million, including the $605,000 cost of the building. They gutted the structure, tore down one addition and built a new four-story addition to house an elevator, stairwell and rest rooms.

They have a tax increment financing, or TIF, agreement with the city for 10 years. Under the agreement, there is a 50 percent tax exemption for five years and a 30 percent exemption in the sixth year, declining to a 10-percent exemption by the 10th year.

James M. Mazik, deputy director of operations for the Pioneer Valley Planning Commission, said the commission will pay $13.50 a square foot to rent 16,500 square feet on two floors, for a total of $222,750 for a year. The commission will also pay for utilities and a share of the building upkeep.

…the Pioneer Valley Planning Commission… needs more room to host meetings and for mapping equipment. The commission has 50 employees and provides help to 43 municipalities on land use, transportation and economic development. It has an annual budget of about $5 million, funded primarily through state and federal grants and contracts with cities and towns.

See entire article: http://www.masslive.com/hampfrank/republican/index.ssf?/base/news-22/1251962116100310.xml&coll=1

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Coach Mitch’s REFLECTIONS

Your tax dollars at work

Taxpayers fund the Planning Commission with $5MM per year. The developer buys a building at a tax sale for well under the retail market price, a sweetheart deal. Further, the local government gives a significant property tax discount to the builders, amounting to the builders not paying property taxes for 3.5 of the next 10 years. The property tax exemption discount is another way the public’s coffers are depleted because these monies are not collected, when they otherwise would / should have been.

I suspect that, if one were to investigate, they would find that the builders have made sizeable political contributions. As is well known in political circles, nothing happens by chance. If it happens, it was meant to happen.

The lesson

This transaction is a very good example of how you can plan to become wealthy with tax delinquent property.

The 3 step process

1 - Seek out government, local is easiest.

2 - Find out what they want.

3 - Give it to them.

I am not being cynical nor satirical

You will find that in many communities each of the governing bodies want “their” own Taj Mahal.

The Police “need” a bigger, better, more secure jail and administrative building.

The town’s Highway Department or General Services unit “need” their own, bigger space for more toys, like a road sweeper or leaf picker upper.

The fire departments all need new firehouses, complete with sauna, pool room, and party hall.

Let’s not forget the library. In my town, the library is undergoing the third expansion, remodeling in five years. The library takes a bigger tax bite than the highway department. The new books are one of the smallest budget items. Existing employees and new hires are the great bulk of the costs.

Of course, the mayor/supervisor and the town board are campaigning for a new government center. I’m sure you agree that current town employees are squeezed in like mice. As more government workers are hired (empire building never ends), they will be even more squeezed.

The biggest boondoggles of all are the schools. Our town recently completed our Tax Mahal and the Board of Education is patting itself on their back that they kept the spending down to only half the accumulated wealth of the western world.

Donald Trump did it this way

“The Donald” took his father’s inheritance and his Wharton School education to do HUD transactions. He built apartment complexes with government subsidies and really made a fortune.

You need the right tools

Once you find out what the government unit wants, look for property that will satisfy their need. The first place to look is, of course, the tax delinquent property list. You will find out how to garner this list when using Coach Mitch’s Ridiculously Simple System. When your government contact says, “Yes, that property will do.” control that property with Coach Mitch’s famous $1 Option.

Shovel Ready projects

This is the mantra these days. Many governmental units have projects, already planned, sitting on the shelf, and ready for shovels. Go get your piece of the pie.

Pay to Play

Donate to the party or to those who have the ear of those making the decisions. The old saw is correct, “It takes money, to make money.”

However, with Coach Mitch’s Ridiculously Simple System, you only need $1 when using Coach Mitch’s famous $1 Option.

Best of Luck,

Mitchell Goldstein – Coach Mitch

518-439-6100 until midnight EST

Tax delinquent real estate, tax liens, and tax deeds are a great way to invest in real estate. Pre-foreclosure and foreclosure investing is significantly enhanced by Coach Mitch's system.

Coach Mitch’s REFLECTIONS

Give the system what it wants

A banker wants to see assets. If the asset is liquid, like a stock or a bond, then he gives you credit for it. If the asset is real estate, the banker gives you credit for that also.

The banking system does not like to take chances. Why should it? You want money for some project, and the bank wants it back, plus interest and on time. To make bankers ‘feel’ better, they want to see lots of assets that you own.

Bankers like assets

Bankers equate assets with success, a good thing to have them feel about you when seeking a loan. An applicant who holds assets inspires confidence that you will be able to pay the loan back. But, most of all, the assets allow the banker to know that you have something to attach, if necessary. Your assets are collateral.

The more assets you have the better

In America, there is something magical about being a millionaire. People aspire to it and bankers love making loans to millionaires. If you had a choice, which would you rather loan to, someone who has to scrape up a down payment and can barely make a payment, or someone who has so many assets, that they are a millionaire.

Coach Mitch says, “Just say ‘Yes’. “

When seeking a loan, wouldn’t it be great to have a Balance Sheet showing that you have $1,000,000 in assets? Even better, wouldn’t it be great if you could really get that amount of assets on your balance sheet and only spend $1000 and show $1,000,000?

How to be a ‘paper’ millionaire

When accountants create a Statement of Assets, they list the market value of the asset. You might have purchased a house for $100K, but it may be worth $200K. You got a good deal and it is reflected on your Asset Statement. The actual cost of the item is listed somewhere else and the difference between your cost and the actual value is your equity, which is added to your Net Worth.

Bonds

This same idea happens with bonds. Bonds are purchased at a discount to their value. A $10000 bond at 10% interest for 10 years is offered for sale. The seller is motivated and the buyer offers to purchase the bond, but at a discount. The buyer wants to make 20% interest. Since the bond’s interest is contractually set at 10%, paid quarterly, the only variable that can be reduced is the face amount of the bond.

Since the buyer wants to earn 20%, the seller must sell the $10000 bond for $6836. That is the only way the equation works.

Number Interest Present Value Payment

40 quarterly payments, at 2.5% per quarter (10%/y), on $10000, is $398/quarterly payment

The above equation is the same as:

40 quarterly payments, at 5%    per quarter (20%/y), on  $6836,  is $398/quarterly payment

The bond payer still pays $10000 plus interest, but the new owner is collecting that interest against a payment of $6836 versus $10000, so his profit is much larger.

The Asset Statement shows an asset valued at $10000, but the cost was $6836.

Pretend

Make believe that you could buy an asset for 1000^th of its value. WoW!

In many areas that sell tax liens, the liens are against property that has a high tax assessed value, but the tax lien amount is very low. This is often the case with tax liens in the deserts of New Mexico, Arizona, Utah, Idaho, Nevada, etc. Look for places where the desert land is not going to be developed for a significant period.

The Plan

Find tax delinquent lots that are tax assessed at $10000 and purchase 100 liens or lots for $10 each.

100 liens or lots @ $10 each = $1000 spent. 100 liens or lots x $10000 market value = $1 million. This amount can be added to your Statement of Assets and Balance Sheet.

Look like a million dollars

A tax lien is a bond. Bankers are very familiar with bonds. They like them. When you show that you have $1 million in collateral, they will look at you in a different light. They don’t need to know that you only paid out $1000 for that $1 million.

BTW, often, these lots can be purchased at Ridiculously low prices, because the owner no longer wants to pay the taxes. Sometimes you can get lots or FREE.

This is a creative strategy

Coach Mitch has been creating creative ideas for a long time. He shares them with his students in his Ridiculously Simple System.

The best of luck,

Mitchell Goldstein – Coach Mitch

518-439-6100 until midnight EST

Tax delinquent real estate, tax liens, and tax deeds are a great way to invest in real estate. Pre-foreclosure and foreclosure investing is significantly enhanced by Coach Mitch's system.

Coach Mitch’s REFLECTIONS

Did you ever wonder

how families used to be so large and still survive? Into the 1920’s and beyond It was routine for a working man to support seven or more, and on an average salary of $28 a week. In fact, the average household was over five people.

Taxes were low

That is the answer, plain and simple. I have heard, meaning that I have not verified it myself, that the tax rate at the time of the revolution was a staggering 2%. Our forefathers went to war over not having a voice in paying taxes, when taxes were at a very low rate.

Today taxes are very high

Taxes of all sorts and from all sources, take over 50% of a households income. That does not leave much to pay the mortgage, school clothes, food, entertainment, credit cards, etc. At this rate, It is easy to see that we pay more to house, feed and clothe someone else’s family than we pay for our own.

Therefore, it is easy to see how quickly a family can be put in a bad place when a layoff occurs, or when a significant medical bill is incurred, or when the cars engine blows up, or any number of disasters that can befall a family at any time.

I predict

Within 20-30 years, if the American public does not change the character of our government, then we will go the way of other nations and have barbed wire “reeducation” concentration camps for wayward citizens; wayward meaning, anyone who does not like what our government is doing.

Charlie Reese has written an article

The article accurately lays the grave danger our nation is in at the feet of our government.

The ‘Bottom Line’

If it happens, then government wanted it to happen.

I present the article complete.

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Our mess is our problem, because we have given up our rights to ‘the other guy.’ Now it is time to take them back. Be vocal like this reporter is.

545 vs 300,000,000

EVERY  CITIZEN NEEDS TO READ THIS AND THINK ABOUT WHAT THIS JOURNALIST HAS  SCRIPTED IN THIS MESSAGE.  READ IT  AND THEN REALLY THINK ABOUT  OUR CURRENT POLITICAL DEBACLE.

Charley  Reese has been a journalist for 49 years.

545  PEOPLE
By Charlie Reese

Politicians are the only people in the world  who create problems and then campaign against them.

Have you ever  wondered, if both the Democrats and the Republicans are against deficits, WHY do we have deficits?

Have you ever wondered, if  all the politicians are against inflation and high taxes, WHY do we have  inflation and high taxes?

You and I don't propose a federal budget.  The president does.

You and I don't have the  Constitutional authority to vote on appropriations. The House of  Representatives does.

You and I don't write the tax code, Congress  does.

You and I don't set fiscal policy, Congress does.

You  and I don't control monetary policy, the Federal Reserve  Bank does.

One hundred senators, 435 congressmen, one  president, and nine Supreme Court justices equates to 545 human  beings out of the 300 million are directly, legally, morally,  and individually responsible for the domestic problems that plague  this country.

I excluded the members of the Federal Reserve  Board because that problem was created by the  Congress.  In 1913, Congress delegated its Constitutional duty  to provide a sound currency to a federally chartered, but private, central  bank.

I excluded all the special interests and lobbyists for a  sound reason.. They have no legal authority.  They have no  ability to coerce a senator, a congressman, or a president to do one  cotton-picking thing.  I don't care if they offer a politician $1 million dollars in cash.  The  politician has the power to accept or reject it. No matter what  the lobbyist promises, it is the legislator's responsibility  to determine  how he votes.

Those 545 human beings spend much of their energy  convincing you that what they did is not their fault.   They cooperate in this common con regardless of party.
What  separates a politician from a normal human being is an  excessive amount of gall.  No normal  human being would have the gall of a  Speaker, who stood up and criticized the President for creating  deficits..  The president can only propose a budget.   He cannot force the Congress to accept  it.

The Constitution, which is the supreme law of the  land, gives sole responsibility to the House of  Representatives for originating and approving appropriations and taxes.  Who is the speaker of the House?   Nancy Pelosi.  She is  the leader of the majority party.  She and  fellow House members, not the president, can approve any budget they want.  If the president vetoes it, they can pass it over his veto if  they agree  to.

It seems inconceivable to me that a nation of 300 million can  not replace 545 people who stand convicted — by present facts — of  incompetence and irresponsibility.  I can't think of a  single domestic problem  that is not traceable directly to those 545 people.  When you fully  grasp the plain truth that 545 people exercise the power of the federal  government, then it must follow that what exists is what they want to  exist.

If the tax code is unfair, it's because they want it  unfair.

If the budget is in the red, it's because they want it in  the red ..

If the Army &Marines are in  IRAQ ,  it's because they want them in IRAQ

If they do not  receive social security but are on an elite retirement plan not available  to the people, it's because they want it that way.

There are no  insoluble government problems.

Do not let these 545 people shift  the blame to bureaucrats, whom they hire and whose jobs they can  abolish; to lobbyists, whose gifts and advice they can reject; to  regulators, to whom they give the power to regulate and from whom they can  take this power.  Above all, do not let them con you into  the belief that there exists disembodied mystical forces like "the  economy," "inflation," or "politics" that prevent them from doing  what they take an oath to do.

Those 545 people, and they  alone, are responsible.

They, and they alone, have the  power.

They, and they alone, should be held accountable by the  people who are their bosses.

Provided the voters have the  gumption to manage their own employees.

We should vote all of  them out of office and clean up their mess!

Charlie Reese is a former columnist of the Orlando Sentinel  Newspaper.

What you do with this article now that you have  read it………. Is up to you.

This might be funny if it weren't so darned true.
Be sure to read all the way to the end:

Tax his land,
Tax his bed,
Tax the table
At which he's fed.

Tax his tractor,
Tax his mule,
Teach him taxes
Are the rule.

Tax his work,
Tax his pay,
He works for peanuts
Anyway!

Tax his cow,
Tax his goat,
Tax his pants,. Tax his coat

Tax his ties,
Tax his shirt,
Tax his work,
Tax his dirt.

Tax his tobacco,
Tax his drink,
Tax him if he
Tries to think.

Tax his cigars,
Tax his beers,
If he cries
Tax his tears.

Tax his car,
Tax his gas,
Find other ways
To tax his ass.

Tax all he has
Then let him know
That you won't be done
Till he has no dough.

When he screams and hollers;
Then tax him some more,
Tax him till
He's good and sore.

Then tax his coffin,
Tax his grave,
Tax the sod in
Which he's laid.

Put these words
Upon his tomb,
Taxes drove me
to my doom…'

When he's gone,
Do not relax,
Its time to apply:
The inheritance tax.
Accounts Receivable Tax
Building Permit Tax
CDL license Tax
Cigarette Tax
Corporate Income Tax
Dog License Tax
Excise Taxes
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Permit Tax
Gasoline Tax (currently 44.75 cents per gallon)
Gross Receipts Tax
Hunting License Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges IRS Penalties (tax on top of tax)
Liquor Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Personal Property Tax
Property Tax
Real Estate Tax
Service Charge T ax
Social Security Tax
Road Usage Tax
Sales Tax
Recreational Vehicle Tax
School Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone Federal Excise Tax
Telephone Federal Universal Ser vice FeeTax
Telephone Federal, State and Local Surcharge Taxes
Telephone Minimum Usage Surcharge=2 0Tax
Telephone Recurring and Non-recurring Charges Tax
Telephone State and Local Tax
Telephone Usage Charge Tax
Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers Compensation Tax

STILL THINK THIS IS FUNNY?

Not one of these taxes existed 100 years ago, and our nation was the most prosperous in the world.  We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids.

What in the hell happened? Can you spell 'politicians?'

And I still have to 'press 1' for English!?

I hope this goes around THE USA at least 100 times!!!  YOU can help it get there!!!
GO AHEAD - - - BE AN AMERICAN!!!

Tax delinquent real estate, tax liens, and tax deeds are a great way to invest in real estate. Pre-foreclosure and foreclosure investing is significantly enhanced by Coach Mitch's system.

Media Ignores Reason for Foreclosures

Loss of good jobs through ‘free’ trade is at heart of foreclosure epidemic

By Mark Anderson February 18, 2008 American Free Press

With the mortgage crisis reaching critical mass, it’s time for Americans to see past the media reports that are keeping them in the dark. Take Shaker Heights, a suburb of Cleveland. Foreclosures have emptied most of the houses. This town was “ravaged by the subprime mortgage crisis roiling the United States,” stated a typical mainstream news report.

Many former residents were “evicted for non-payment of their mortgages,” some left in search of new jobs “after the factories shut down.”

This report represents the usual shallow, worn-out “explanation” of the crisis. If people were not given so much worthless information, they might understand what is happening. The media blathers about careless lenders that gave mortgages to risky recipients who didn’t keep up their payments. But the real story is that the destruction of middle-class jobs, especially in the manufacturing realm, is destroying the ability of Americans to earn, save, invest, pay taxes, reduce personal debts etc.

…one must work. And the types of jobs people need to be secure homeowners are disappearing. These jobs left the nation aboard the “free trade express.”

The Clinton-Bush dynasties gave us …NAFTA, approved by Bush the Elder, was signed by Bill Clinton and protected by Dubya, who pushed through CAFTA. Congress has aided and abetted the whole process, perhaps believing in the fool’s gold of free trade.

As former General Motors executive Gus Stelzer noted many times, production is the key. the media invokes the word “consumer” when referring to Americans. Never do they seriously talk about the vital process of production. Why?

Production consists of taking the Earth’s raw materials and forging them into useful products. This value-added process lays the groundwork for an economy to function. Back when Americans were producing most of the things they needed…they were paid well…Imports usually cost more back then because they were supposed to (any item shipped long distances ought to cost more, for travel expenses alone).

There was a time when one could graduate from high school, skip college, go right to a company and work for decades, with a decent retirement. America was so productive that surpluses were exported. We were the world’s leading creditor nation, with no trade deficit.

Look at us now. It is the height of absurdity to believe that a national economy can function without production. But, under the thrall of the free traders, we close factories, outsource what used to be American production jobs to overseas locales, and then we build retail outlets here for selling the merchandise. Working at retail outlets does not generally enable one to buy a home…

Nor can we just employ people in tax-eating government jobs. As people slip down the job ladder and face eviction from their homes, they are even less able to pay taxes to support the mushrooming number of government jobs. And the pressure to spend more tax dollars and enact new taxes to cover the increased government employment eats away at the ability of remaining businesses and private individuals to keep their stores and homes (and home-based businesses) afloat. When they lose their grip, they become unemployment and welfare statistics.

“Based on a very conservative 4-to-1 ripple effect, if the goods represented by America’s current yearly trade deficit were produced in the United States, they would generate $2 trillion in added national income, equal to about $16,600 per household,” said Stelzer.

An immediate need is to put sizable tariffs on all imports, particularly those from China, to offset the advantage of having things made overseas for dirt cheap, and to create a strong incentive to make things in America. From there, all levels of government must be cut back so taxes can be lowered, regulations relaxed and a good business climate re-installed in the U.S.

And as presidential candidate Ron Paul says—no more policing the world (and the trillions of dollars it requires).

Read the full story: http://www.americanfreepress.net/html/reason_for_foreclosures125.html

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Coach Mitch’s REFLECTIONS

This is great logic

Of course, logic is no longer taught in highschool, so American students no longer have critical thinking skills. They are brainwashed to think and to mouth the currently popular mantra, i.e. global warming.

Such nonsense!

The Club of Rome is a very prestigious and influential group that sets the agenda for many liberal/fascist groups.

The Club of Rome, has, since the sixties, been putting out papers stating that the ‘population bomb’ is about to explode, that ‘food and water’ should be rationed, that the ‘natural resources must be protected’ and ‘the earth is too hot.’

First, a hysterical setting must be created around a theme that has some level of truth to it; like population growth or climate change. Then, a set of ‘solutions’ are put forth that always calls for greater government involvement, which invariably narrows the ability of people to move forward with their lives, except as the Club has determined is acceptable. It is classic Fascism: Control at the top by the puppet masters with acquiescence by the puppets, i.e. the entire population.

I could say a lot more

about the world wide effort of leaders to enhance their own power and take more control of our lives. But, I will leave that to your own devices to explore.

Your responsibilities

Your first responsibility is to yourself. You must take it upon yourself to feed, cloth, and house yourself, to train yourself for a vocation, and to prepare yourself to defend your life, your liberty, and your property.

Your second responsibility is to provide for your family. Providing must be more than the basics; it includes being a good example to your children. Your third responsibility is to help in your community by being a leader who can be trusted to do that which is good, righteous, and just.

Being a shining example in your community, is the best way to protect your children’s inalienable rights to their life, liberty and property. If more citizens were shining examples, then those wanting power, for the sake of power, have a harder time of consolidating power.

The government’s responsibility

The US Constitution requires that a government defend a person’s rights, to their life, their liberty, and their property. Defending is a negative action. It only happens when someone or something attacks. Protecting the citizenry, which is the current mantra, is a positive action, which only happens when the government wants to impose its will over the population.

Power

Delaying the assention of Power is the most that we can do. Wanting Power is one of those life forces that cannot be denied, like the ‘Seven Deadly Sins’ of the New Testament. The Old Testament, in Proverbs, recalls that the Lord hateth, “A heart that devises wicked plots,” and “Him that soweth discord among brethren.”

But the Devil get’s his due. Men want Power, and when they get Power, it corrupts them. But, little understood, is that, often, evil men tend toward seeking power. The most evil are those who corrupt US, with their charm, their manner, their easy expression; because these men knowingly lead US down the wrong path and goad US into slipping the ‘golden handcuffs’ onto our own wrists. We are like the mice following the Pied Piper.

How to protect yourself and your family

I continue to believe that making an independent livelihood is the best way to protect oneself from the incursion of government. One can manufacture, merchant, farm, etc. But for me, doing real estate investing is the way to independence.

Of all the ways to invest in real estate, the easiest and the best way is to work with those who are tax delinquent. These folks are willing to give you a good deal and because my system concentrates on working with free and clear property, they are able to give you a good deal.

Coach Mitch’s Ridiculously Simple System shows, in detail, how to buy or control property for very little money, often below $1000, even as low as $1.

Now is a great time to start,

Mitchell Goldstein – Coach Mitch

518-439-6100 until midnight EST

Bloomberg.com

June 9 (Bloomberg) — New York Attorney General Andrew Cuomo subpoenaed 14 loan-modification companies and plans to sue another one as part of a probe of the “foreclosure rescue” industry.

Loan modification companies, which get lenders to change the terms of mortgages to help avoid foreclosure, are capitalizing on the housing crisis and preying on desperate homeowners, Cuomo said. His investigation was spurred by homeowner complaints that the companies fail to deliver the services they promise, and he said they often leave consumers further in debt.

“Many of these companies charge upfront fees which are specifically prohibited by law,” Cuomo said on a conference call. “Sometimes homeowners even end up paying a higher cost after one of these companies gets involved.”

Cuomo said that in many ways the “entire industry is a scam” because the U.S. Department of Housing and Urban Development provides assistance to struggling homeowners for free.

Cuomo said he served Amerimod and its owner and president, Salvatore Pane Jr., with an intent to sue. He said the company, which claims to serve consumers nationwide, often fails to deliver promised services and advertises misleading claims of success rates of 90 percent to 100 percent.

“At no time has the New York Attorney General’s office, or any other state official condemned Amerimod Inc.’s integrity or success in completing modifications and helping homeowners in a time of need,” the company said. “Amerimod has been and will remain a frontrunner for compliance as well as a reliable source for distressed homeowners and consumer advocacy groups.”

The subpoenas request information on marketing strategies, fee structures and the services performed, Cuomo said.

For entire story: http://www.bloomberg.com/apps/news?pid=20601103&sid=ayf4__hn9ZWo&refer=news

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Coach Mitch’s REFLECTIONS

More government duplicity

The government just continues to shine. Government again, has come down on a group that is trying to help consumers who are in trouble because of a government policy.

Cuomo say’s that the “entire industry is a scam.” It seems that HUD, The Department of Housing and Urban Development provides some help to consumers seeking loan modifications. By this logic, any outside help that a consumer seeks, must surely be fraudulent.

What “O” should do – but won’t

“O” should do what Sweden did. In this era of ignoring the Constitution, the government should underwrite those in foreclosure, modify the loans to a payment that the borrower can make, and eliminate the foreclosure mess.

“O” is not doing this because the President does not want to be in the position of being seen as kicking people out of their houses when some of them will not be able to pay back the loans. It’s bad politics to be seen as hurting the public. Rather, “O” will let the banks hurt people by not modifying loans and making the foreclosure situation much worse. So sad.

People are fighting back

People, are seeking any way open to them, in trying to save their home. Loan modifications are a standard way to work in this type situation. Just as in any industry, there are specialists who are in business to accomplish the task. Just ask any businessmen, when he gets in trouble, he goes to the bank and modifies the loan.

When people are trying to clear up their credit report, they can go to the FTC, The Federal Trade Commission, and be one of over 50,000 who, each year, register a complaint against a credit reporting bureau, and ask for assistance in clearing up any negative item on the report.

FTC carries out government policy

The FTC will ask you if the negative item is accurate. If it is accurate, the FCC will say that the negative item must stay on the credit report and "there is nothing that you can do." That is not “help” in removing the negative item.

Just like any good defense lawyer, a credit clearing company would not ask if the negative item is accurate. A credit clearing company’s job is to employ tactics that will try to remove that negative item, because that is how you define, “working in your client’s behalf.”

FTC deceives

However, Cuomo would say, that credit repair is a bogus activity, and that “The FTC will help you clean up your credit report and the service is free.” In fact, the NYS AG’s office has made these comments, many times.

FTC acts with duplicity

There are technicalities in the Fair Credit Reporting Act that every credit item must meet. If any of the technicalities in law are not met, then that negative item must be removed – period, even if it is accurate.

Neither the credit reporting bureau, nor the FTC, who claim they are public advocates, will ask the questions that a credit repair company will ask: was the item reported accurately, was the item reported in a timely manner, according to law, was the item checked for its veracity, did the checking procedure actually check for the veracity of the information, who did the checking, were they qualified, was the check done in the legally required timeframe, etc.

What is going on?

As you can readily ascertain, the government does not ask these questions, and therefore, the government is duplicitous when claiming to be the advocate of the people. Rather, they are the advocate of Big Business, making sure that important procedures are kept intact so that control is maintained. Credit is one such important procedure.

In the just ended credit expansion, lending was based on credit reports. No longer do banks do any real fact checking. They find this too time consuming. Therefore, in an effort to be efficient, a system of credit checking has replaced traditional bank fact checking. This credit checking system relies on lenders, banks, having all the negative information it can get, because banks are creating loan programs that don’t check anything else.

In this coming period, the policy is to be more careful and only do “good” loans. Policy changes every so often. Back in the late 90’s we had such loose credit that in 2000-2002 we had to deal with the Savings and Loan debacle. The Federal Reserve, instituting government policy, regulates how tight or “easy” the money supply is. When going for a loan today, you will be scrutinized. Had we been scrutinized in the past several years, we would not be in the situation that we find ourselves.

The 3 C’s of credit

Character: relates to how a person has handled past debt obligations: By compiling a credit history and personal background, lenders determine the honesty and reliability of the borrower to pay credit debts.

Capacity: is means testing. It relates to how much debt a borrower can comfortably handle. Income streams are analyzed and anything which could interfere in repaying an. obligation is looked into.

Capital: determines the borrower’s currently available assets. Included are real estate, savings, investments, and personal items that could be used to repay debt if income should be unavailable.

Credit

With the banking failures, the banks will probably go back to this model, but loan officers must be trained. Reliance on credit will still dominate any banking decision.

A high credit score is almost the only way to get a loan these days. With foreclosures being prevalent, millions of folks are doomed to 10 years of high interest rates. A loan modification would alleviate some of the pain and raise credit scores of these individuals, something the banks do not want.

Big Brother

Where is it written that a consumer must restrict themselves to only going to a government agency to contest a grievance? This is a conflict of interest.

The banks and credit bureaus are both extensions of government policy. Today, it is most clear that the banks and credit bureaus are government vehicles, because the banks are owned by the government. Of course any government agency will do anything it can to uphold any policy of any other government agency.

The IRS is your friend

This is the effect of Cuomo’s statement. Don’t you believe it.

What to do?

Enacting Coach Mitch’s Ridiculously Simple System is a great way to get around bank loans because you don’t usually need them when dealing with tax delinquents. My system try’s to deal with free and clear property. In this manner, the tax delinquent, who is willing to give you a great deal, is able to give you a great deal because there is no mortgage to contend with.

Be on guard,

Mitchell Goldstein – Coach Mitch

518-439-6100 until 12 midnight EST

Tax delinquent real estate, tax liens, and tax deeds are a great way to invest in real estate. Pre-foreclosure and foreclosure investing is significantly enhanced by Coach Mitch's system.

Miami Today week of May 28, 2009

Dade tax collector advertising fewer properties this year even with recession

By Risa Polansky
Despite a rough economy, fewer delinquent property tax certificates are being advertised for sale in Miami-Dade this year than last.
In 2008, the county tax collector advertised 89,795 properties before the annual delinquent tax certificate sale.
This year, the office is advertising 85,318 properties.
Former local appraiser Tom Dixon said he had expected a jump this year in light of the economy… though he quickly identified a contributing factor.
"The reason is that if there is a tax appeal pending and unresolved, the tax collector does not sell the tax certificate," said Mr. Dixon.
Miami-Dade Property Appraiser Pedro J. Garcia said this month that in the past year, the county has seen 70,000 appeals on about 100,000 properties, up from 40,000 to 45,000 the year before.

Another potential contributor: because of foreclosure, there's a high number of bank-owned properties in Miami-Dade now — and banks tend to pay property taxes.
In 2007, 26,391 foreclosures were filed, more than doubling to 56,656 in 2008.
Through April of this year, 25,577 have been filed, according to county clerk counts.
Alex Sanchez, president and CEO of the Florida Bankers Association, said it's "unheard of" that a bank not pay property taxes once foreclosure proceedings become final and the bank holds the property's title.
"That's their collateral — they want to protect it," he said.
Mr. Gomez of the tax collector's office acknowledged the same.
"Generally, banks would act to protect their interests," he said.

He noted that this year he's seeing more individuals register for the auction.
Hedge funds and institutional buyers have been common in recent years, he said.
Now, "I think we might actually see a return to the auction of these smaller investors" Mr. Dixon said he expects fewer buyers in the game this year and predicted "buyers are going to probably be more competitive in terms of wanting higher rates — but nobody knows until the auction opens."

See entire article at:  http://www.miamitodaynews.com/news/090528/story7.shtml

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Coach Mitch’s REFLECTIONS

People are fighting

In this era of higher property taxes and lowered real estate values, people are fighting harder to keep their property. People are fighting harder today because they feel that they are being taken advantage of.

The property value has gone down, but often the assessor has not reduced the properties tax assessment. To be fair, it is not possible to do a system wide appraisal and adjust the assessments each time the market reacts to a different condition.

Taxpayer logic

However, people see that their value is down, dramatically down in some places, and they figure that their property taxes should also be reduced. People feel this way because the taxes are based on the property assessment or value. Therefore, if the value of the property has down, it stands to reason that the assessment should go down and the taxes along with it.

Tax Rates are adjusted

The system has a built in adjustment – the tax rate. This is the mechanism used to adjust each taxpayer’s yearly taxes.

The taxing jurisdiction determines its total monetary need, divides this amount by the value of the property tax base and this results in a tax rate. The tax rate is spoken of as a tax rate per thousand. An individual’s property tax is determined by taking the properties tax assessed value and multiplying it by the tax rate.

Example

If the tax rate is $20 per thousand dollars of assessed value, then multiply $20 by the number of thousands of property value. Take a $100000 home, the calculation would be $20 times 100 or $2000 in property tax.

In some areas the tax rate is spoken of as a rate per hundred. Everything is the same except that all calculations are done to be shown in hundreds not thousands. The $100000 home would be calculated by taking $2 per hundred dollars of assessed value (not $20 per1000) and then multiplying by the number of 100’s in 100000 or 1000 equaling $2000 in property taxes.

Other factors

The town still needs to pay its bills, no matter the condition of the market. If market conditions reduced the value of the property by 50% and the tax assessments were also lowered by 50% and the tax rate were to stay the same, then the town would only raise 50% of the revenue it needs.

Example

In this example, the assessed value is $50000 and the tax rate is $20 per thousand. The familiar calculation is 50 x $20 equaling only $1000 in property taxes.

Taking this example, the tax rate would need to be doubled in order to raise the same amount of capital. If the property is now worth only $50000 and is tax assessed at $50000, then the tax rate needs to be $40 per thousand - $40 per thousand of assessed value times 50 gives us the same $2000 in property taxes.

Nickel and diming

So as not to bring so much attention to higher property taxes, a town board will raise monies by increasing other fees. Therefore, taking your kids to the town pool will cost more, or registering your softball team if using the town’s ball field will cost more, or registering your dog to go to the town’s dog park will cost more.

Assessors do adjust assessments

The tax assessor does adjust, but it is with an ax versus a scalpel. The assessor will look at neighborhoods, determine how much of an adjustment is relevant, and adjust the assessments for that neighborhood.

Example

Imagine that MLS sales figures show that the town has gone down 20% in overall value but the 10 different neighborhoods have gone down at different rates and one neighborhood held its value. Within each neighborhood, types of houses have fared differently. Sale prices for 3500 sf homes dropped significantly, while 2000 sf homes dropped moderately and 1300 – 1500 sf homes held steady or rose slightly. The assessment adjustments should reflect these realities. As you can see, there is science here but there is also a lot of art.

Taxpayer’s have a case

Because the tax assessments and any adjustments are not precise, a taxpayer can feel that their property is over assessed and is being asked to pay too much tax.

Appeal

Each state has a process allowing taxpayers to appeal their property taxes. It can be a daunting process, however it is worth pursuing.

The article above shows that these good folks in Dade County are appealing their property taxes at a much higher rate than before. Good for them.

Until next time,

Mitchell Goldstein – Coach Mitch

518-439-6100

Tax delinquent real estate, tax liens, and tax deeds are a great way to invest in real estate. Pre-foreclosure and foreclosure investing is significantly enhanced by Coach Mitch's system.

St Petersburg Times Florida

Tax lien auction still leaves $2.6 million gap for Pasco

By Jodie Tillman, Times Staff Writer
In Print: Thursday, May 21, 2009

It may have been a record, but it wasn't the one that Pasco Tax Collector Mike Olson was hoping to set: More than $2.6 million in property taxes for 2008 remains unpaid after Tuesday's tax certificate auction.

"It's probably record-setting," Olson said of the figure. "And that's because of the economy."

Investors, who pay the outstanding taxes in exchange for liens on the properties, participated in smaller numbers and seemed worried about tying themselves to properties that they'd never see a return on, said Olson.

In better financial times, more bidders jumped in for the tax certificates, especially after the auctions were moved online. That meant more competition, driving down the interest rates. It was good news for delinquent property owners who intended to make good on their bills: They didn't have to pay as much in interest.

In the 2007 auction, for instance, the average winning bid was an interest rate of 1.72 percent, said Olson. (Investors are actually guaranteed a minimum of 5 percent, he said, but they offer lower interest rates as a bidding strategy.)

By 2008, that average rate had jumped to 8.3 percent.

And this year? 11.3 percent.

In 2007, only 66 certificates were sold at 18 percent interest, the maximum rate that suggests the highest risk. Last year there were 328. This year? 678.

Olson said he has yet to analyze whether certain properties were more or less popular than others among bidders. But investors have an even more difficult time navigating the risks these days.

Buy a certificate on a property whose owner ends up in bankruptcy, he said, "and that beautiful 12.5 percent rate you got will be thrown out by the bankruptcy court."

Properties with homestead exemptions had been considered safe, he said, because homeowners typically want to pay those taxes off fairly soon — but that's "in normal times."

"I held mine [auction] extremely early this year because of my concern of whether there'd be sufficient investor money this year in the state of Florida to cover 67 counties," he said.

See entire article: http://www.tampabay.com/news/localgovernment/article1002847.ece

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Coach Mitch’s REFLECTIONS

Some TLC’s are in trouble

Tax lien certificates have always been a checkered investment; with some parts good and some parts not as good.

For instance, just a short time ago, the Maracopa County, AZ tax lien sale sold out. Every TLC was sold, including TLC’s against lots far out in the desert, without utilities, nor the prospect of getting utilities in our lifetime. Numbers of TLC’s were sold that are worthless. However, the county needs money and some people naively trust government to do the “right” thing – like sell something only if it has value.

Now, in this economy, in certain areas, we are starting to see the marketplace at work. The great part about the “invisible hand,” as Adam Smith called the free market, is that the market can often be predicted.

Prediction 1

The market prices of property in hard hit areas like Florida will stay down for several years. I have been told that we could see a decade of lowered real estate prices. I hope this estimate is overblown.

Prediction 2

Speculative TLC purchases will be reduced significantly. Private monies will continue to buy most of the TLC’s that are out there, however, there is waning desire to buy TLC’s that are not high quality; in the same way that currently, investors are trying to trade in quality stocks and bonds.

Prediction 3

TLC Investors and tax deed investors are being much more conservative, more careful and implementing strategies that protect themselves rather than waiting for a market change or letting people work out a problem.

This change in attitude will mean that there will be heightened competition for the best tax delinquent properties, but that the other, less desirable properties are going to have less competition. The result will be that TLC investor’s will drop out of the bidding earlier, that they will require a higher interest rate of return and that the TLC holder will be going after deeds more aggressively.

Prediction 4

You would be amazed at the number of TLC holders who automatically buy the same TLC year after year against the same property. These are mostly purchasers for estates.

I predict that beneficiaries will take a hard look at their TLC assets and perhaps decide to foreclose the TLC rather than wait for a redemption or at least to more closely watch their portfolio. There may even be a spate of lawsuits against trustees and executors of estates who are not performing their due diligence well enough.

The issue is that the property may not be worth the accumulated TLC investment, especially in a lengthy down market.

Prediction 5

For the savvy TLC investor, there will develop a new way to enter into the TLC investing market. You have always been able to offer to buy the TLC asset portfolio of TLC holders, and at a substantial discount. Whereas previously TLC holders would refuse to sell, today they will accept. The times they are a chang-en.

Most TLC investors have the mindset to just buy the TLC’s, let them accrue with high interest, and wait for the redemption.

Little known is that TLC’s become invalid after a certain period. This rule is in many TLC states. In Florida, the law stipulates that an unredeemed tax lien becomes invalid after seven years. I have seen numerous investors continue to buy the newest TLC against a property even after the oldest TLC has become invalid, because it is older than seven years.

These folks are foreclosure adverse. They do not want to foreclose, that is too much work; they are arm chair investors. Yet, they do not want to lose their investment. If you were to offer to buy their TLC’s on a particular property, they might sell. If the interest had been accumulating at 18%, the resulting total might be more than the value of the property. The investor might be interested in getting their principle back and either foregoing the interest or significantly reducing the interest – just to get to cash.

This would be a great way to utilize Coach Mitch’s famous $1 Option Series strategy. Every one of Florida’s 67 counties has many such investors with large portfolios who may want to get to cash. Just investigate and offer to pay them – after you have sold the property.

Prediction 6

Self Directed IRA’s will explode in numbers and in value.

After the average American has been exposed to the enormous value that an SDIRA can bring to their investing mindset – they will embrace the SDIRA as never before.

Imagine having a Roth SDIRA. Using Coach Mitch’s famous $1 Option Series strategy, (you) your IRA options a property with $1, the IRA sells the property for a $20000 profit and the IRA retains the profits – tax free. It would not take very long for the depleted SEP, 401K, or IRA to again wallow in gains.

Prediction 7

Big government, in collusion with big business, has created this mess and they are certainly not going to do anything to diminish their power and reach in the cleanup. If anything, we are seeing a concerted effort by big government exerting ever more control over the economy.

Big business is pushing this process along by demanding and getting what they want. The biggest of the players know that they will be protected and given privileges. For instance, the banks used their bailout monies to buy up more assets versus lending to keep companies functioning and payrolls active.

Prediction 8

Taxes, fees, bureaucracy, and autocracy are going up – way up. And, quality of life will continue to go down.

Prediction 9

Passions will be rising on all sides, partly headline driven, for profits, but mostly driven by frustration with the system.

Curbs on civil rights will continue under O, but taking on a distinct liberal agenda. Tenant advocates vs. property rights, the poor vs. the middle class, and the rich vs. everyone else. Populism will be on the rise, driving anger, with patience almost at an end.

Private property will continue to be assaulted, gun control will be pursued aggressively. The plight of the poor and undocumented will be foisted onto the struggling middle class in the name of “fairness.”

The idea that taxes are “legalized theft” will start to take hold. More and more of the “Silent Majority” will begin to speak out but wanting opposites; less taxation and government intrusion while demanding costly government unemployment benefits, medical aid, and job security. The call for trade sanctions and barriers will rise.

Prediction 10

In some ways O is not acting as the liberal, with no change from Bush policies; continuing the lack of Habeas Corpus and the Bush strategy in the Gitmo trials. People will start wondering: Either O did not understand the terror threat prior to election, OR O did understand and he lied – in order to be elected. Either way, O loses and his credibility is lessened.

Go Great Guns,

Mitchell Goldstein – Coach Mitch

518-439-6100

BARTOW | Friday is the last day to pay 2008 property taxes without incurring extra costs, according to Polk County Tax Collector Joe G. Tedder.

After June 1, tax certificates on the delinquent tax bills will go on sale, Tedder said.

Tax certificates are sold to aid local governments in recouping the tax money already budgeted but not yet received.

Tax certificates are liens that property owners must pay to settle their tax bills.

Investors can bid to receive interest rates of up to 18 percent, but the lowest interest rate wins the bid, according to state law.

Tedder said any investor who purchases a tax deed and holds it for at least two years from the date the taxes were due can apply for a tax deed, which will result in the sale of the property.

According to the latest figures, investors have bid on only 12,456 of the 36,847 tax certificates that are being sold this year.

As of last week, there were $56 million in unpaid property taxes.

Last year when the delinquent taxes that are advertised annually the total was $38 million.

Tedder said he expected to hold a second round of bids this year, too.

In the second round, investors will receive 18 percent in interest on any of the tax certificates, which could spur more bidding if there are still attractive properties on the list, Tedder said.

He explained there is some risk in investing in tax certificates, the same as with any other investments.

'It's definitely buyer beware," he said.

Tedder advised anyone interested in bidding to read the information on the Polk County Tax Collector's Web site www.polktaxes.com first.

He said people can look at the list of properties available on the Web site without registering.

Registration is required only if you want to place a bid.

See entire article: http://www.theledger.com/article/20090522/NEWS/905239987/1338?Title=Pay-Property-Taxes-by-Friday-or-You-Pay-More

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Coach Mitch's  REFLECTIONS

Buyer Beware!

The great state of Florida is a wonderful place to get tax lien certificates. Unfortunately, currently, it is not as great as it used to be. Therefore, your best course of action is to be very careful before purchasing a Florida TLC.

Hurricanes

What do hurricanes have to do with a decision to invest in tax liens?

We all know that the brass ring in TLC investing occurs when you pay the delinquent property taxes and when the property owner does not redeem, and then you get the property itself - for the cost of the taxes.

The insurance companies offering hurricane insurance have increased their rates significantly. In fact, hurricane insurance is very, very expensive. I have heard of situations where people are paying $1500 for their property taxes, but are now paying $6000 for hurricane insurance.

Make sure you want the property

People do not pay their property taxes when there is some trouble or issue in their lives. Almost all folks resolve their situation enough to gather sufficient funds to pay the taxes, but sometimes they don’t.

In Florida, the system requires the TLC holder to hold an auction. The minimum bid is the taxes and costs due. The TLC holder is an auction bidder, just like everyone else. The opening bid is the amount of the outstanding taxes plus costs. If anyone bids, the TLC holder is required to bid higher, should he want the property. Any bid over the amount due is considered “excess proceeds” and is due the delinquent property owner or other parties who are due monies.

Know your values

I have heard many stories about the great deals that were had at these tax delinquent property auctions. However, the most important issue always is, make sure of your property values, and make sure you can execute your exit strategy.

Happy investing,

Mitchell Goldstein – Coach Mitch

518-439-6100 until midnight EST