I read that you can buy real estate from the city if someone doesnt pay their property tax. is it true?

Question

If someone doesn't pay their property tax, then the city will place a lien on their home, until they pay. If they still don't pay the city will put it up for sale, just for the price of their property tax bill that they owe. Is this true, if so, is it also true that anyone can buy it? Where do you find out about these sales?

Answer 1

Ok, here's the deal. Some posters above are spreading misinformation. Here in the US there are 2 systems that are used for dealing with delinquent property taxes--it depends on the state you are in.

a) Tax Sale states - The Tax Collector will hold a public auction for the delinquent property. The minimum bid will be the amount of taxes owing, plus penalities, interest and the costs of the sale. Winning bidder gets the property for the amount of their bid, subject to any superior liens (e.g. IRS federal tax liens) and rights of redemption provided by the state's laws (i.e. the former owner may be able to buy their property back if they pay you what you paid for the property, plus an additional percentage, within a certain timeframe, generally up to 2 years).

b) Tax Lien states - The tax collector will hold a public auction for the LIEN on the delinquent property for the amount of taxes owing, plus penalities, interest and the costs of the sale. Winning bidder gets the LIEN for the taxes for the amount of their bid. The state specifies what interest rate can be charged on this lien, and after how long of it remaining unpaid it can be foreclosed on. So here you've got to bring a foreclosure action in order to get ownership of the property, which can be costly. Then the former owner still may have a right of redemption.

Easiest way to find out the method used in your area, plus any of the specifics of the sales is just to google "XXXX County Tax Collector". Most have websites with information on their tax sales.

Answer 2

In New Zealand if somebody has a mortgage on their home and doesn't pay it, the Bank or Finance Company where they got their loan will close.

This means that the property will now be up for auction and will sell for the remaining monies owed.

If it goes for more ... the Bank/Finance Company get what they are owed and the remaining money goes to the ones that didn't pay their mortgage.

We usually find out about these sales in local papers with heading "Mortgagee Sale".

Hope this helps.

Answer 3

All US governments sell either tax certificates, or in some cases the properties themselves to anyone willing to pay the back taxes. When properties are sold, they are sold at auction & generally bring close to market value.

Tax certificates are simply a lien allowing the buyer -- also at auction -- to foreclose or apply for a deed after a period of time -- usually a couple of years. During that time you'll have to pay any prior years taxes that are due to protect your interest. 99% of the time, if the property is worth anything it will be redeemed by the owner. These auctions are dominated by professional investors & financial institutions who rely on the high interest rates paid by the owners to redeem properties.

Answer 4

You should check with your county tax assessor and collector.
It is true in Texas. But the only problem is this: Even after you pay the taxes they still have 90 days to pay you back and reclaim their property. So look at it closely.
Usually, each quarter, the county has auctions. Now this is true here in Texas, Each state is probably different. So do not take ANYONE's word on here, check it out with your county.

Answer 5

That is entirely false.

The city/county will foreclose on the property, and auction it off at fair market value, not for just what is owed on the property.

Answer 6

You can find these houses listed in the want ads and they usually are sold on the court house front steps. You have to a bank cashier check. No personal checks, credit cards, etc. are allowed

Answer 7

U really want it that badly

OK