I am interested in real estate. Anyone know if this is legal , if so, how do I go about it?
2007-05-30 13:56:01 · 7 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
it's usually not quite that simple but you're on the right track. Most of the time the county where the property is located will auction off the property that is delinquent with it taxes. If you are the highest bidder you get the property. However, in most places the delinquent owner has a certain period of time after the auction to reclaim the property by paying the back taxes. in some places they have up to 2 years.
Be sure to do your homework.
2007-05-30 14:10:16 · answer #1 · answered by jimmy dean 3 · 1⤊ 0⤋
Yes, you can buy a property at a tax lien sale, and yes, it's legal. It works like this.
Say a homeowner, we'll call her Jill, forgets to pay her property taxes. The city will send her a few notices, and if she doesn't pay the property taxes, then the city will send her a notice of tax sale.
The city will have an auction, usually annually of all the defaulted taxes. Investors will arrive at the auction to bid on the defaulted taxes. Let's say that Jill owed $300 in taxes, and and investor bids $300 to take over the defaulted taxes. That investor now holds a tax deed.
Jill has two choices, pay the investor back the tax deed + interest, or lose her home to a tax lien sale.
Either way the investor makes good, because they will either earn the tax deed money back + interest, or they will get an entire property.
The only thing that's kind of slimy about it, is say Jill is a 90 year old grandma living on a fixed income. Do you really want to evict Jill? It's legal to, you own the property. So that's an ethical dilemma you may potentially face.
But most of the time, properties you get in a tax lien sale are vacant, bank owned properties anyway.
If you want to know when your city or county has tax lien sales, contact your tax collector or assessor. You can look up their info at www.netronline.com
Hope this info helps
2007-05-30 21:09:29 · answer #2 · answered by Valerie L 2 · 2⤊ 0⤋
It's somewhat true, but generally NOT true. Such properties normally appear at a sheriff's sale or similar under a taxing municipality 'foreclosure sale'. Expect a LOT of other interested buyers to show up to buy such properties. In general, most of these properties are sold to the highest bidder to fair market value or reasonably close.
2007-05-30 22:30:13 · answer #3 · answered by acermill 7 · 0⤊ 0⤋
It depends on what state you are in. In some states you can, in others you pay their taxes and get a lien, they have to pay you back, plus interest, or you get the property. I live in Washington and we have bought several properties like this. You have to research the county you are interested in. They have auctions if it is for the property and they have them once a year. My advice is to call or look online to see how the county does it where you are, or what you are interested in. To get property at an auction, like in Washington state, you have to have cash.
2007-06-06 13:29:43 · answer #4 · answered by artbyheather04 3 · 0⤊ 0⤋
It's not true. You're just paying someone else's debt.
If the house is seized by the county or state for back taxes and sold at auction, then you can own it, but you are competing against other bidders, including the mortgage company.
It doest' void the mortgage either - you still have to pay that or let it go back to the bank.
2007-05-30 21:04:19 · answer #5 · answered by Catspaw 6 · 0⤊ 0⤋
Depends what state you live in. But, mostly, yes you can. You would need to find out the parameters in your state. Contact the the Real Estate Board for info
2007-05-30 21:04:29 · answer #6 · answered by artgal1285 4 · 0⤊ 0⤋
depends on the state, and there are plenty of guidlines for it. Please research it, and good luck!!
2007-06-05 11:55:16 · answer #7 · answered by Anonymous · 0⤊ 0⤋