2006-08-05 12:38:55 · 6 answers · asked by beach_babe971 1 in Business & Finance ➔ Renting & Real Estate
even though the house value could be 200,000 or more. since houses owned from the government,the first reponsibility of the government is to owe the back taxes,then who ever pays it owns the house?
2006-08-05 12:48:51 · update #1
and where can i find listings of this? and is it alot of these from the government?
2006-08-05 12:50:04 · update #2
These things make wonderful late night infomercials, but there is no way you can get a $200,000.00 house for a $200 tax lien.
I do 10 to 15 closings a week and frequently pay off tax sale certificates from sales proceeds. The certificates have an obscene interest rate, but they are paid off at closing.
No one in their right mind is going to let a $200,000.00 house be sold out from under them because of a small $200 tax lien. They will get a HELOC or borrow money in order to pay the redemption certificate and have the lien discharged.
The redemption period varies from place to place, but in some places the owner has years to redeem.
If someone owes an exhorbitant amount, they will sell the property to pay off all the liens and walk away with the balance in cash.
Think of it like this: You own a corvette worth $50,000 and you owe $25. You don't have the $25 so a lien is placed on the car. What are you going to do?
A) Sell the car for $50,000, pay the $25 and keep $49,975 for yourself.
B) Find a way to borrow $25 so you can pay off the lien
or C) Let them take the car because you owe $25
Few people would pick option C.
2006-08-05 13:05:49 · answer #1 · answered by BoomChikkaBoom 6 · 0⤊ 0⤋
Just about the only way that could happen is if it is an estate where the house doesn't have a bank mortage and the owner died w/ no heirs. Highly unlikely. When you buy the tax papers, it is basically that you will get paid back first when a house is sold.
2006-08-05 14:21:11 · answer #2 · answered by Michelle G 5 · 0⤊ 0⤋
Nope. You can buy the LIEN at a tax sale giving you partial ownership of the home, and then the current residents are given X number of days to repay the back taxes. If you're lucky they'll repay them including late fees and you'll make a few dollars. If you're unlucky you'll have to take them to court to get your investment back, and that can cost you thousands in legal fees.
2006-08-11 06:20:01 · answer #3 · answered by Funchy 6 · 0⤊ 0⤋
Yes, theses are called Tax Lien Certificates. You can inquire about them at the Clerk of Courts office. Most of them are auctioned.
2006-08-05 12:48:01 · answer #4 · answered by trace 2 · 0⤊ 0⤋
absolutly, they have peridacl sales every year. go to gov. tax lien sales dot com
2006-08-11 11:41:31 · answer #5 · answered by jwarning89@sbcglobal.net 1 · 0⤊ 0⤋
yes
2006-08-05 12:48:13 · answer #6 · answered by Willnotlietoyou 5 · 0⤊ 0⤋