Kenosha, WI

In a previous post, I described being contacted by an out of state investor interested in pursuing real estate to be sold in a tax sale. Coincidentally, the property which the out of state investor contacted me about ended up in the hands of one of my clients. As the successful bidder of a property seized by the IRS and sold for nonpayment of taxes, my client (and I as broker) had lots of unchartered territory to muddle our way through.

Soon after the purchase, my client contacted me to list the property for sale. She was concerned that another party's name appeared on the tax bill. Surely just an example of typical delays in processing paperwork. A quick search and hold of the title proved valuable since my client was apparently a joint title holder with a complete stranger.

According to my client, once the 180 day redemption period passed after procuring her spot as the successful bidder, my client paid the remaining balance due, and the IRS sent all documents, including a quit claim deed, to my client. She promptly recorded the quit claim deed with the local municipality and the sale was final...or so she thought.

DID SHE ONLY BUY ONE HALF INTEREST IN THE PROPERTY?

According to the municipality...yes. At the time the IRS seized the property, there were two people (unrelated) on title. When the IRS sent the quit claim deed to my client, it only listed the party from whom the property had been seized for nonpayment of taxes. The other party on title wasn't mentioned in any of the documents. My client wasn't aware of another party at the time of the sale.

IS THE INTERNAL REVENUE SERVICE IN THE BUSINESS OF DEFRAUDING UNSUSPECTING REAL ESTATE INVESTORS?

No...it's not even an issue of caveat emptor (buyer beware). Bottom line is due dilligence when purchasing real estate unconventionally. In this case, it turns out that the IRS had a statement from this mystery title holder that stated that they had no interest in the property. Unfortunately, this signed statement is not in an acceptable format for recording with the municipality. If the proper due dilligence had been executed, the buyer would have demanded proper documentation from the IRS to ensure clear title BEFORE paying the remaining balance due. We could have avoided a lot of backtracking and wasted time.

On the flip side, we're avoiding future legal troubles by clearing title now rather than waiting until seller accepts an offer and then scrambles to provide evidence of clear title to the new buyer.

It's been just over six months since that fateful day when Northpointe subdivision was one of the communities effected by the the JANUARY 7th tornado's that caught Kenosha, County by surprise.

As a resident of Northpointe, my home was one of the many affected by the storms. While the siren's raged throughout all of Kenosha County, and there were reports of sightings out in Wheatland, WI, I found myself racing home while on the phone with my then-pregnant wife, who was huddled in a corner of the basement with my sons and our dog.

I'll never forget the feeling in the pit of my stomach as I turned down our street and began to see the damage to our neighborhood. My next door neighbor was screaming in fear as she ran into what was left of her home to see if her husband and two children were safe.

In the end, nobody in our family, or in our neighborhood was injured. We were one of the more fortunate families with the damage being repairable, and all of our losses fully insured. Our next door neighbor's home had to be torn down and is almost rebuilt, and the neighborhood church is still under construction.

Six month's later, most in Northpointe, seem to have returned to business as usual. The sound of tornado sirens has been replaced by the melodic rifts of the ice cream truck. And on any given day, scores of neighborhood children can be seen riding their bicycles or playing basketball in a neighborhood driveway.

Overall Northpointe is a great little subdivision in Kenosha. There is a condo complex at the entrance, and the Northside Library is practically in the subdivision, only 2 blocks away and no major roads to cross. Piggly Wiggly is also within walking distance. There are still currently some lots available as well as a few homes for sale. These homes are some of the best values in the Kenosha real estate market. Just to the west of Northpointe, is the Meadows at Hunters Ridge. These new homes are again, part of a short neighborhood walk, with no major streets to cross.

... more pictures

<--Before After --->

Photos from KENOSHA NEWS ONLINE

http://kenoshanews.com/web_extra/index.php?galleryId=951617