2006-08-24 01:24:35 · 7 answers · asked by capt_knowledge 2 in Home & Garden ➔ Other - Home & Garden
Two different processes. Foreclosures are done by mortgage lenders, and they can resell any time. They often sell by closed bid with a last bid deadline and a deadline to pay.
Tax liens are held by the county or city and are done by auction. Payment is usually required by the end of the day of the auction.
On county tax sales, you can get on a list to have them send you an announcement when they'll be held, and which properties will be sold, the status, etc. The best source of info on those is the secretary who assembles those announcements for mailing, or her mentor, depending on how big the town or county office is.
In both cases you have to be ready to pay in full. It takes research, often there are other liens on property, that has to be disclosed. You also have to check the properties. The county wants its tax, thats all. I saw 5 adjoining lots, one with a house on it, auction for $2500
at a tax auction. Also watched the pastor of a church buy a log A-frame home for 5000 at a tax auction. All built and hooked up, lot included.
I have a friend who bought a house on the edge of a 2 year college campus for 9000 at a foreclosure sale. Good luck. Its worth learning about.
2006-08-24 01:39:12 · answer #1 · answered by water boy 3 · 0⤊ 0⤋
I bought a house at an auction website online. I have seen the house outside, but not inside. The closing date has been delayed because of an IRS tax lien of $80,000 on the house. This was not disclosed to me when I won the bid on the house and signed paperwork for it. It wasn't disclosed until the title company wanted to set back the closing date by 2 months. Is this a legitimate reason to cancel the contract, back out of the house deal and still get my $7800 earnest money back? The title company says I can do a QuitClaim now & may end up liable for the tax lien, or wait the 2 months til the waiver on the IRS lien lapses. How do they know the tax lien will lapse and the IRS won't renew it?
2015-01-08 06:32:27 · answer #2 · answered by WH 1 · 0⤊ 0⤋
The two previous answers are very accurate. I might mention that I went to a County tax lien sale and there were not many people there (50 or so) but the ones that were there were very prepared, and many were professional investors who do this type of purchase regularly. So if you have a property in mind, realize that if it is in a desirable location, many other people with a lot more funding available will be there also.
I also have a friend who's father picked up several hundred acres in the barren desert for 3M, off the county courthouse steps. He has now more than quadrupled that investment in only about 5 years by developing a luxury golf course community in the desert.
2006-08-24 05:48:06 · answer #3 · answered by ewema 3 · 1⤊ 0⤋
you'd be to blame for paying the tax lien. A identify insurer might want to nevertheless problem a coverage, even with the undeniable fact that it is going to exclude the tax lien. Whoever informed you that you'll get a coverage with actually "no exceptions" has s**t for brains. there is not any such aspect as a "no exceptions" coverage. each coverage has exceptions for easements, reservations of rights, restrictive covenents, and so on. And the coverage on your case will actually have an exception for any latest tax liens. So, definite, you ought to purchase the domicile, yet note that you will be procuring something with a tax lien that could want to ultimately be foreclosed. So, be positive you adjust your furnish fee to obviously you'll in all probability be required to repay the tax lien.
2016-11-27 02:14:24 · answer #4 · answered by hinnant 4 · 0⤊ 0⤋
You buy tax liens from the state, in an auction form. Properties that have not paid their taxes for a specific period of time are auctioned to the lowest bidder, who upon winning, must pay the taxes in full. What you are bidding on is the lowest interest rate you are willing to accept for your investment. Usually, if the owner of the property does not pay the taxes within 1-3 years, forclosure can be initiated, and once complete, the title to the property will be transferred to you. This is a rare occurance.
2006-08-24 01:32:43 · answer #5 · answered by surfinthedesert 5 · 1⤊ 0⤋
OK, what you do is buy the house of the guy who got overtaxed. Then move in. Then try like hell to sleep at night because because he's gonna come back to his home and smash your face into a casserole with an industrial grade shovel.
2006-08-24 01:30:48 · answer #6 · answered by Anonymous · 1⤊ 0⤋
You have to find one to buy first.... And Not in Titusville.. I will not live there! Ha ha Ha Ha....
2006-08-24 06:38:19 · answer #7 · answered by Allison B. 1 · 1⤊ 0⤋