2006-11-16 11:19:20 · 5 answers · asked by charlene s 1 in Business & Finance ➔ Renting & Real Estate
These are called tax lien properties. When a person defaults on their property taxes the municipality still needs the money. The county will put a tax len against the property. These liens are available for sale at county auctions. In NY they are interest bearing and are sold to the bidder who took the lowest interest rate. The best thing about tax liens is that they have the highest priority over any other lien. However, most people will not loose their house for not paying property taxes. If the owner remains deliquent for 2-5 years you will be able to receive a tax deed and take possession of the property. It is very unlikely though. Also, alot of banks will be at these auctions and purchase these tax liens on properties that they hold a mortgage note on. You should contact your county clerk office for the dates of the auctions and for a list (they may charge a fee or place ads in the papers). In NY they hold auctions once a year in January or February. Before you decide to go to one of these auctions you should consult a knowledgeable attorney who is competent in tax liens. Good Luck and I hope this helped you.
2006-11-16 11:37:59 · answer #1 · answered by tianaramal 4 · 2⤊ 0⤋
It happens, but it isn't very likely.
First, the owner has to not pay the taxes long enough to irritate the taxing authority.
Then they decide to have a sale.
Then they post it in the newspapers or something like that.
Then at the auction, you're bidding against people that know what the property is really worth. Or maybe they don't and bid too much. How do you know which they are if you don't do some research?
2006-11-16 12:23:34 · answer #2 · answered by open4one 7 · 0⤊ 1⤋
Don't be fooled by the amounts that you can buy a Tax sale home for- there's nothing free but if you dress it up enough you can sell it... Tax Sales take a step by step approach which should be done by an atty. or you'll mess it up and possibly not have access to your money for a long time! not to mention you could end up getting your home sold on you if you are under funded. I didn't llok hard at the answers already out there but it looks likethey've already told you how to do it. Just check your assessors office for the dates to get yourself ready by so that you can participate once you're ready to do it.
2006-11-16 12:38:03 · answer #3 · answered by loosenutbehindthecomputer! 2 · 0⤊ 0⤋
Go to your county assors office and ask when the next tax sale is..each state has differant ways so ask questions
2006-11-16 11:57:50 · answer #4 · answered by bbbandit 2 · 1⤊ 0⤋
you have to go to your city hall to get a list of the houses and then they have an auction and you give your bid...if you pay the outright back taxes before the auction it is automatically yours
2006-11-16 11:21:28 · answer #5 · answered by Anonymous · 1⤊ 0⤋