PIP-West Does It Again … Tax Lien Acquisitions Exceed 30% Avg. For 4th Straight Year
New Legislation Passed in Illinois Means More Protection For PIP-West Clients With Unredeemed Liens
In year’s past, there was a tremendous amount of concern with regards to initiating foreclosures in IL. The legislation did not protect tax buyers from the potential loss of attorney’s fees should the lien redeem following the initiation of the foreclosure process. With economic changes come legislative changes. Tax buyers are now far more protected should a lien redeem following the initiation of foreclosure. In summary, title agent fees can now be applied to the total cost to redeem the tax liens. If your title agent also happens to be your attorney, then ALL the fees associated with the foreclosure are due and payable if the lien is redeemed. Finding a title agent that also happens to be a state licensed attorney in IL can be a challenge. With PIP-West, the attorney(s) are also our title agents. This enables our clients to have a higher level of protection for their investments than other tax buyers in the same area. PIP-West clients initiated foreclosure on nearly 3 times the tax liens as were done in 2009, thanks to these changes in legislation.
Illinois Tax Sales Are Right Around The Corner!
Can you believe summer is nearly gone?? With the end of summer comes the biggest and busiest time of year for PIP-West and its clients. Illinois Tax Sale Season!! It only lasts a few months, but as your Agent, it feels like a year! As our clients are aware, IL is in such high demand that we start receiving investments (on a first come/first serve basis) as early as July! Those of you who waited until the last minute last year, didn’t get to reap the rewards of those of you who got your investments into us early. So don’t wait! Illinois is a penalty state. That means that if we buy your liens for you at 18% today and it redeems tomorrow, you get 18% on your principal! If it redeems 6 months from now, you get 36%!
The Obama Administration’s $75-Billion Silver Bullet to Fix the Foreclosure Problem Misfires
Editorial by Charles Sells
Director of Acquisitions – PIP-West, LLC.
As the hype of all the new administration’s spending hit the markets, foreclosures slowed – for about a month. Anyone actually in the industry knew a moratorium on Los Angeles and Orange County foreclosures last year would do nothing more than provide a false sense of hope that “change” was on the way. Fast forward nearly 18 months later and guess which two counties in the country have consistently seen the most permanent loan modifications under this struggling program?? If you guessed Los Angeles and Orange County, you are correct! Loan modifications in Los Angeles and Orange County represent nearly 10% of the national average. HOWEVER, foreclosures in these counties represent less than 5% of the national average. Seems that moratorium fueled one of many fires this administration will never be able to extinguish.
With $75-Billion injected in all the wrong ways, the market has continued to post records – in all the wrong directions. To state that this silver bullet “misfired” is to make the assumption that the bullet even had a chance of being fired in the first place. This program had very little chance and now that the money is almost all spent, the signs of its struggle are everywhere. Foreclosures were UP nearly 40% compared to last year’s figures for the same time period. Nearly 50% of trial loan modifications have been canceled since the inception of the program over a year ago. Banks like Wells Fargo are implementing their own programs, which costs tax payers NOTHING and are reporting much better success rates. The administration has stolen our piggy banks to give the money to banks that don’t want the money, or the programs. The facts show that this program is struggling to survive and foreclosures are continuously on the rise.
There is no silver bullet, but there is indeed a silver lining. The flood gates of opportunity that were open to us (as investors) before this administration took charge are slowly cracking back open. The administration’s attempt to limit the free trade this county was founded on has failed. This means more opportunity for our clients in all facets of default real estate for years to come. As politics continue to back-pedal out of our industry and business, the floodgates will re-open and we will be there to catch every opportunity that comes pouring out.
COME VISIT US AT THE ETC CONFERENCE!
Meet and Speak With Other Investors
Get FREE 1 on 1 Advice From The Experts
Unlimited Consultation to Help You Determine What Your Investment Can Potentially Be With Your IRA and PIP-West