Saturday, July 10, 2010

There is an infomercial by John Beck advertising a system to buy homes for less than $1000, what is going on?

The informercial is explaining that a home that sells for $189,000 sold for some amount under $1000, and the tv ad briefly discusses back taxes (i.e. liens on the property). If something is going for these prices, then how much of a lien is on the property, and is the buyer really able to resell it for its fair market value without the lien and without paying any taxes? How could the informercial be so misleading!There is an infomercial by John Beck advertising a system to buy homes for less than $1000, what is going on?
John Beck is a thief! I ordered his package and, never received it,


Can anyone spell SCAM?


I was unauthorizedly billed $120 towards my Credit Card so, I had to close it to avoid losing anymore of my hard earned money. Yeah, don't be his next victim, go to college and, get a good paying job or, you will suffer BIG TIME! I kinda like his hand gestures, when, lying about everything he saids :)There is an infomercial by John Beck advertising a system to buy homes for less than $1000, what is going on?
The only thing John Beck is selling is his ';system';. The chances of a novice picking up a property for pennies on the dollar or that even closely resemble the houses he shows on his infomercial are close to nil. John Beck is in the business of selling you more books, cds, seminars, one on one coaching etc for thousands of dollars. He isn't getting rich buying these properties, he is making his bucks by selling this system of his. He probably doesn't even buy tax lien homes anymore. LOL
What you are buying are tax liens. These are properties that the owners have abandoned and not paid taxes. The taxing authority seizes the property. The bank is out of the picture. They lose. Taxes have the highest priority. In my state, to buy a house like this, you have to buy three years worth of the tax liens on the property in question. Then you own it. If the original owner pays the taxes, you lose the property but can recover your money plus some interest. The pictures you see on their program are bogus. The properties were in very bad shape and required thousands of dollars of repairs.
It is misleading.





You know as well as I do that there isn't a bank in the country that is going to sell you a 190 000.00 house for 1000.00 morgage crisis or not.






Have you seen how many of these guys have went to jail?


It is a scam!


You get cheap copies of stuff written up that is on the internet for free.



The magic word in the infomercial is COULD.
They're talking about tax sales. If a property goes to tax sale, it's a superior lien to all others, including mortgages, so it's possible to get a house for only the cost of the taxes if it wipes out all the mortgages and liens - BUT ...





In most states, properties only go to tax sales after 2-3 years of not paying taxes. That means that you'd have to buy the tax certificates for at least one of those years and then wait; then file a foreclosure. Or wait until someone else does it. You have to distinguish between Tax Certificates and a Tax Sale, but that's a whole other subject.





In any event, you will normally not get houses at that rate. Why? Because 1) Most mortgage companies will pay the back taxes before they go to sale, since they don't want to lose their mortgage by letting the house go to tax sale; 2) Most people are not going to allow their house to go to tax sale for a few thousand dollars - although many ';borrow'; other people's money until the last second and then pay it off right before the house would go to sale; 3) There are very few houses that would go to tax sale if they were actually worth anything at all, since people would either sell them beforehand, or buyers would be standing in line to buy them and would likely bid the price up quite a bit at the sale.





Most tax sales are for vacant land, from people who have passed away, or that inherited the property and didn't even realize it, or some other reason.





There are also a lot of full-time investors looking for just such properties. It takes a lot of research to find a good deal. There are a few good ones out there - the question is, do you have the time to find them? And many will probably not be in your county, let alone your state. So if you're looking for a house to live in - not such a great strategy. If you're looking for investments - yes, it's possible, if you want to spend the time and effort.
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