can I really buy real estate at a tax sale auction for hundreds of dollars?

Answer 1

Possibly but probably not. Being's it is in forclosure there will be many things in most cases wrong with the property physically and possibly with the title as well. If it were me I'd have a title company do a "Check" of the title Prior to trying to buy. This will cost less than a title search then you'll know what shape the title is in. If possible to gain access to the property then you could see what need work or have a professional home inspector check it out for you.

Many times unless you really know you'll be far ahead to buy a property else where. But you never know.

Answer 2

I am responding with a set of the books sitting less than ten feet from me. The simple answer is that it is not all it appears. I intend to bid on properties that I can personally or have a friend personally look at. In most cases, all you earn is about 18% interest on your purchase. Lots of work for just n 18% return. This works only if you have several hundred thousand dollars to invest. You further need to be very legal savvy to properly conduct a foreclosure at the appropriate time. If you do not want to invest hours of time learning the foreclosure laws of every jurisdiction in which you might want to buy a lien and do not want to learn Secured Transactions in Real Property, this is is absolutely not for you. I have only been a general legal practioner for about 30 years and this intimidates me. It has not stopped me but I understand the risk factors, including local jurisdictions propensity to excuse the default and errors of locals over the legitimate legal claims of outside investors. Even when you win big...you can lose!

Answer 3

Yes, you bid on properties and the opening bid is the amount of delinquent taxes. The owner of record has 1-2 years to redeem their property. This means that they can buy their property back for the delinquent taxes plus 10% of the tax sale price. You get any amount you paid over the tax amount back plus the 10% goes to you as "interest" on your tax sale loan.

If after the 1-2 year period is up and the owner of record has not redeemed their property, it is yours free and clear of any liens. This is done through a tax sale deed.

However, it is not advisable as most title insurance underwriters will not cover a property with a tax sale deed within the past 30 years. Basically this means that you will be unable to get a mortgage on this property. You would also have to disclose this information to any potential buyers as it would affect their getting a mortgage also.

*This is not the same thing as a foreclosure.

Answer 4

Yes and No. When such properties end up at 'tax sales', you may be purchasing the property complete with the liens currently existing on the property. Of course, a lender would be pleased to see you purchase such a property for a few hundred bucks, because the lender would now have a new owner upon whom it can foreclose the lien, and who would have paid the outstanding taxes on the property.

If the property is truly free of such encumbrances, expect that the bidding for the property may well end up close to fair market value, less the amount of taxes outstanding.

Answer 5

yes u can/ make sure and read the fine print /where i live / u r not / allowed to go in and inspect property / until bought and paid for in full / if U r going to do that / make sure u have ample repair monies / good luck

Answer 6

no no and no!!!! its a joke i have tried and tried.. by the time the public hears about it is already gone.... and dont think of wasting your money on forclosure secrets and crap like that.. its a complete lie

Answer 7

If it's that cheap, it's probably full of toxic waste or asbestos.