i want to buy a home, and there are list of properties that the state has claimed due to unpaid property taxes. Is this a great risk, or does it seem like a good deal?
Does a bank finance this type of purchase?
2007-08-21 08:22:29 · 4 answers · asked by Janice Dickinsons' Shrink 6 in Business & Finance ➔ Renting & Real Estate
Hire a Realtor®. The house is only worth what someone is willing to pay for it. Just because taxes are owed or that the property is corporate owned does not mean that it is a good "deal". You need to exercise due diligence when purchasing any type of real estate, especially distressed properties. A local Realtor® will be your best source for this information and they will likely represent you for free.
2007-08-21 08:55:42 · answer #1 · answered by scottsnyderhomes 1 · 1⤊ 0⤋
Here's what I've been told (but you'll have to prove it out). There is a certain day of the week when the courthouse has an auction on the court's front steps....and you come with money in hand (so to speak...meaning you have already come up with money to use at the auction...I don't know that loan companies give money on something they have never been able to appraise, so I think you have to have your own money, like be an investor). And then the people bid, and the highest bid takes it...remember that there are a lot of people with money bidding along with you who have done this before. These days I understand the auctions are for "a bunch" or bundle of properties at the same time, not individual homes, cause they want to get them off their hands.
It's my understanding that you would need to research the property, see that it's still in decent shape, and that you'll have the money to upgrade it or clean it up, and also find out how much taxes are owed and be able to pay those. Sometimes though you're taking a chance or gamble because you don't have a title company or an attorney working with you when you buy...like maybe the title is not clear (because well could be for 100 reasons). Or, maybe there are liens on the property, or construction liens on the property....so you'd have to do all the checking on those even before you bid on the property...and then you might not get the property....so it's a lot of footwork you have to do and quickly and research on many at once to be able to land one of those tax properties. Here in Florida the taxes go so high and quickly that it's better to level the house than to have the taxes build....so if you don't catch the house in time, then it's gone for good (from the listing).
IF, and that's a big IF, you find a house you like and it's for sale, and is not abandoned, and you can find the owners and ask who their bank is, and they are maybe just one payment behind and want out...and you can strike a deal with their bank directly....well, I'd think that would be your best bet.
Never buy a home where a homeowner has just sold you the property but kept their name on the mortgage. That's asking for trouble.
Never buy an ARM...they have balloon payments and you'll be stuck and foreclosed on eventually. Get a 30 year loan instead. And, make sure home insurance is available in the area where you are buying. Make sure the taxes are affordable to your liking.
2007-08-21 18:08:21 · answer #2 · answered by sophieb 7 · 0⤊ 0⤋
Foreclosed or unpaid property taxes -- chances are the house has been vacant and is in need of extensive repairs and maintenance. You really need to be a handy or have the extra cash.
If you find a mortgage for a foreclosed home, there will be a list of things the mortgage company will want completed before closing -- yes, they want major repair work done before you even own the place. You're also going to need excellent credit.
2007-08-21 16:34:17 · answer #3 · answered by bdancer222 7 · 1⤊ 0⤋
Does the bank have these properties on hand and are ready to sell, or are they just holding tax lien certificates on the properties due to unpaid property taxes? If it is the first scenario, then I would check title and inspect the properties you are interested in. See if the lender that holds the properties will give you a loan on it.
If the lender is simply holding a tax lien certificate, then go ahead and purchase them as they are guaranteed by the municipality that issued them.
Hope this helps...
Check out TaxSaleWealth
http://www.taxsalewealth.com
2007-08-21 16:15:09 · answer #4 · answered by Anonymous · 0⤊ 0⤋