I heard that there was a way that you can actually pay another person unpaid property taxes and own their home....and once you pay the taxes thats it...no morgage....is this true? has anyone ever tried this?
2007-03-25 01:22:49 · 2 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
The rules are different in different states. In general, if you just pay the taxes informally you have no claim to the property nor even a valid claim to recover the money from the owner. If the taxes go unpaid for awhile there are various processes used by the states which could result in property being sold (usually by auction) to someone else free of all liens except federal taxes. If there is a mortgage on the property the mortgage holder will bid the amount due on the mortgage. Be aware that abandoned property may have negative value that could be very costly to you. For example, leaking underground gasoline tanks. The federal government might come after you to pay for the cleanup even if you owned it only for a few days and were unaware of the problem.
2007-03-25 02:16:36 · answer #1 · answered by Thinker 7 · 3⤊ 0⤋
As Michael V said, what you are referring to is property seized by the local government for delinquent taxes. This property is offered for sale, usually by auction and if a mortgage exists, the mortgage holder usually buys to preserve their interest. Sometimes the original owner is allowed to 'redeem' the property within a set time frame. Be sure to know EXACTLY what you are buying before you bid on such property
2007-03-25 02:26:49 · answer #2 · answered by STEVEN F 7 · 2⤊ 0⤋