# foreclosure auction on rented crop ground



## hillside hay (Feb 4, 2013)

I was on my way home last evening and noticed a yellow sign across the driveway to 155 acres of corn ground I rent. We have had a lot of rain lately which has delayed harvest. Last I checked moisture was 28%. That's a lot of dryer time or dockage for a fella like me without a dryer. Normally I would just let it stand in the field until it dries down. The tax sale is in a couple weeks. I wish the landlord would've let me know what was going on. I don't think its gonna go cheap at the sale. Lakefront and in the right shale formation. Praying I can retain it. Has anyone else encountered a similar situation? Did you have trouble getting your crop off?


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## Teslan (Aug 20, 2011)

Tax sale or foreclosure sale? Kind of two different things.


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## hillside hay (Feb 4, 2013)

tax sale


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## mlappin (Jun 25, 2009)

I think even on a tax sale if you have a lease it has to be honored. BUT, you have to make it known that a lease is active to the new buyers, before they buy it.. In Indiana at least if the buyer knows a lease in is effect they have to honor it or buy you out of it. As much as I hate drumming up business for them, your best bet might be to contact an attorney.


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## hillside hay (Feb 4, 2013)

first thing Monday I've got to call the lawyer and the auctioneer. Another downside to a handshake lease these days unfortunately.


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## Teslan (Aug 20, 2011)

Is this tax sale an actual real sale or Tax Lien sale? Here when people don't pay their real estate taxes during the first part of the year in November there is a tax lien sale. Then during the next 2 years the owner can pay the taxes, interest, other fees and get it back. After that the owner of the tax lien can file for a treasurer's deed. In my county less then 2% of properties get that far.

Probably where you live it is different.


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## Vol (Jul 5, 2009)

I suggest that you see if you can get your current lessor to go with you and pay a visit to the auctioneer. If the auctioneer would be agreeable to making a announcement at the sale that the field crop belongs to the leasee and mentions your name, you would not have to involve a attorney. There will be many witnesses to this information at the auction if it is announced. Save you a few hundred bucks too.

Regards, Mike


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## NewBerlinBaler (May 30, 2011)

I've attended a couple of farm / real estate auctions in the past few years. Around here, it's typical for the auctioneer to announce before bidding begins that the crop belongs to the tenant farmer - and is not part of the sale.

Gary


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## hillside hay (Feb 4, 2013)

Here, if you don't pay your taxes they pile on fees and penaltieswhich are different than the fees penalties and interest that are normally associated with back taxes. They usually get 18 months to pay up before they auction off the property which upon closing the winning bidder is issued a quit claim deed. The new owner now has 30 days to register the deed or face losing their down payment as well as all the other monies paid for legal process. Long story short in NY better keep up on those taxes. Also, if you win the bid at the sale and sell the property to the defaulting party their spouse or any member of their immediate family the county will then hold you liable for all back taxes penalties and interest. Again. Given these terms and the staggering amount of listings every year its a wonder private interests are the ones that have to pick up the trash on the side of the roads.


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## hillside hay (Feb 4, 2013)

They haven't done the tax lien sales around here since early 2000's.


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## rjmoses (Apr 4, 2010)

NewBerlinBaler said:


> I've attended a couple of farm / real estate auctions in the past few years. Around here, it's typical for the auctioneer to announce before bidding begins that the crop belongs to the tenant farmer - and is not part of the sale.
> 
> Gary


Same here.

Hillside: Since you did this on a handshake agreement, you might want to pull together any paperwork you have to "prove" that you indeed was a tenant farmer. Spring crop planting report and other USDA documents would be a good start. Any bills/receipts that show you planted/sprayed/fertilized the ground, like a bill from a spreader showing specifically that one or more fields where treated on this property.

A notarized affidavit from the landowner would be a big advantage.

Unscrupulous people will often show up and try to take advantage of verbal agreements. I once had such a deal where the contract stated clearly that the agreement could only be modified in writing. The other side claimed we verbally modified and took me to court. I prevailed, but it was expensive!

Being prepared is 90% of the battle.

Ralph


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## hillside hay (Feb 4, 2013)

Great advice thanks. The auctioneer knows both me and the property. He auctioned off the neighboring parcel which included a previously agreed upon right of way. I'm a little bit calmer today about the whole thing. Bizarre thing was I just re-upped with the guy last week. He never even mentioned having trouble. He does have up to morning of the sale to pay up in full so maybe he's prepared for it. I'm thinking I need to document stuff better. But, I like handshakes, paying in cash up front, doing right by folks, holding the door for my elders and womenfolk etc.


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## Teslan (Aug 20, 2011)

hillside hay said:


> Great advice thanks. The auctioneer knows both me and the property. He auctioned off the neighboring parcel which included a previously agreed upon right of way. I'm a little bit calmer today about the whole thing. Bizarre thing was I just re-upped with the guy last week. He never even mentioned having trouble. He does have up to morning of the sale to pay up in full so maybe he's prepared for it. I'm thinking I need to document stuff better. But, I like handshakes, paying in cash up front, doing right by folks, holding the door for my elders and womenfolk etc.


Sadly it's hard to do business anymore with a handshake. The guy might be living in denial that it will sell also. Had a neighbor to the west of me that he still thinks he is going to get his farm back after 6 years losing it in foreclosure.


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## hillside hay (Feb 4, 2013)

That'd be quite some denial. Lake front and views for miles. 155 acres 1000 ft frontage and around 350 ft of drop.


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## hillside hay (Feb 4, 2013)

really is a nice piece of ground with the exception of a couple sidehill sections that one does an awful lot of praying on.


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## Vol (Jul 5, 2009)

hillside hay said:


> But, I like handshakes, paying in cash up front, doing right by folks


Me too, but that is a sure fire recipe for a hot tail in the present time....

Regards, Mike


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## Bonfire (Oct 21, 2012)

It's none of my business what you pay in rent but last I checked, once you hit $600, it's time for a 1099. Are you deducting the rent as an expense? What's the chance of an audit on you? If your required to send a 1099 and don't, I think your fined twice. One for not sending one to the IRS and one for not sending one to the landlord.


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## 8350HiTech (Jul 26, 2013)

hillside hay said:


> Great advice thanks. The auctioneer knows both me and the property. He auctioned off the neighboring parcel which included a previously agreed upon right of way. I'm a little bit calmer today about the whole thing. Bizarre thing was I just re-upped with the guy last week. He never even mentioned having trouble. He does have up to morning of the sale to pay up in full so maybe he's prepared for it. I'm thinking I need to document stuff better. But, I like handshakes, paying in cash up front, doing right by folks, holding the door for my elders and womenfolk etc.


Last thing I want is my expenses paid out in cash. I want to claim everything I reasonably can and it sure is nice to have the automatic paper trail that a check provides.


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## hillside hay (Feb 4, 2013)

It's all good. Taxes are paid up and I can let the crop dry as much as possible standing


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## Bgriffin856 (Nov 13, 2013)

Ever consider purchasing this ground? I mean losing that sounds like a good chunk of acreage to lose


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## hillside hay (Feb 4, 2013)

I've discussed it with him. He's not ready to sell yet.


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