Tips for Purchasing Delinquent Tax Properties
Learn the Secrets of Purchsing Tax Lien Certificates Now!
Oct 16, 2009
Most people know that this sour economy has come many bankruptcies, foreclosures, and low property sales prices. However, most individuals do not realize that they can purchase some of these foreclosed properties for simply the amount of delinquent taxes. Individuals are able to purchase the lien position of the government entity who owns the lien on the property due to nonpayment of taxes. If the owner fails to pay off the lien, they can foreclose upon the property and become the owner, while only paying the taxes owed and foreclosure costs. In order to do this and buy properties for the mere cost of delinquent taxes, follow these steps.
Study the Liens on the Property. Although individuals may know from the start that there are some property taxes due and potentially some liens placed by the bank, they should try to find out how much money in liens is owed. In the best situation, there are only property taxes owed. However in some cases, there may be multiple mortgages or multiple liens on the property. If this is the case, the individual will need to back away because they will not be able to walk away with the property regardless of the situation. They should study not only the liens on the property but information on delinquent taxes so they know what they are getting into.
Visit the Property. Although individuals will not be able to enter the property or have an inspector come out in most cases, they will still be able to take a look at the property from the outside. Contact the neighbors and have an inspector study the outside of the property in order to find out the true condition of the house. Property buyers should make sure they visit the property to see if there might be some additional issues with the property such as environmental seizure of the property, etc. By going to the property to see it for themselves, the buyer can learn a lot.
Purchase the Lien Certificate. When individuals go to the tax lien auction where the property is being handled, they can purchase a tax lien certificate (or in some cases, more than one tax lien certificate) in order to gain the situation where they could possibly walk away with the property at a fraction of the cost. If the property owner pays off the tax lien certificate, they would gain the money themselves and have no more dealings with the home. But if the property owner does not pay off the tax lien, the buyer will be able to own the property at a huge discount. For more information about buying tax lien certificates, visit Tax Lien Advice.
Buy the Property at the Tax Deed Auction. The property will be put on the auction block if the tax lien is not paid off. By attending the tax deed auction, individuals will be able to bid on the property so they become the owner at a fraction of the cost, free and clear of any liens. Individuals should read at Real Estate Link about how to multiply the proceeds through repeating this process several times.
Additional Resources
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