Owed taxes meaning that the owner hasn't payed taxes on it, and the home is about to be taken from them.
2007-09-13 23:18:28 · 10 answers · asked by ctereen 1 in Business & Finance ➔ Renting & Real Estate
While it is possible to buy a home that is being auctioned for unpaid taxes, don't expect any major bargains. If there's already a mortgage on the property the lender will be right there protecting their interests.
Most of the time properties being sold for unpaid taxes are in rather decrepit condition. The few good ones will usually trigger a bidding war and will eventually sell for close to market value.
Whether or not it would be free of any mortgage would depend upon your circumstances. If you have enough cash on hand to pay cash, then it would be free of any mortgage. It's not easy to mortgage tax sale properties though as they expect payment in full in a very few days. You'd need a hard money lender to close the deal and then take out a regular mortgage to pay off the hard money guy.
2007-09-13 23:27:40 · answer #1 · answered by Bostonian In MO 7 · 4⤊ 0⤋
Boston, Sharon and Wizjp are right. There is a lot of misinformation here and some good information that must be sorted through. First, you can't just pay the taxes and obtain any interest in a property. You have to find and attend the county tax lien sale. Despite how simple they may tell you it is in a real estate seminar, most tax sales do not sell property, they sell liens.
A tax lien is different than purchasing a property in several respects. A tax lien must be perfected and foreclosed in order to convey title to the property. What does that mean? There are statutory requirements for obtaining title to the property after obtaining the tax lien. In many states you must serve proper notice to ANY interested party (including lienholders), hold the lien for a period of time, give notice to lienholders and title holders again, and then seek a judicial title. At that point, you would have title free and clear and all other liens would be wiped out.
If properties do not sell at tax sale, sometimes the city or county ends up with the tax lien. They can then perfect that lien and sell the property in some cases. That avoids the headache of foreclosing a lien, but lets face it, its a property that didn't sell at tax sale. Keep in mind that ANY municipal lien can become a delinquent lien for sale. Water, sewer, municipal electric in some areas . . . these are all sold.
As stated above, most of the properties you are going to find with tax liens are in inner city areas, are rundown, and are not even worth the taxes. Occasionally, if you watch carefully you can find one that is worth purchasing the lien on. Often that lien will redeem.
Check your local statutes for information on tax sales if you are interested. In the midwest where I live, many tax sales are conducted by SRI (http://www.sri-taxsale.com/)
Best of luck to you.
2007-09-14 01:35:53 · answer #2 · answered by Anonymous · 5⤊ 0⤋
Lots of misinformation here. If you pay back taxes on a home, you obtain a lien on the property. IN some states if there are no other liens before you, you can start an action to foreclose (which can be halted by paying the lien). In MANY states, buying tax liens is a business that never ends in ownership of a property.
Check with the local assessor and clerk's office to be certain of your area
2007-09-14 01:09:12 · answer #3 · answered by wizjp 7 · 3⤊ 0⤋
It's not quite that simple. You can get properties for very little at county tax sales. Investigate this thoroughly before you spend any money.
Some properties are tear downs, abandoned homes, and aren't worth anything but the land value. If that's the case then you just entered the world of general contracting.
Good Luck!
2007-09-14 00:54:47 · answer #4 · answered by Sharon 3 · 2⤊ 0⤋
Someone didn't give you the whole story. If a property is being auctioned off for default on property taxes, the lender still have next lien rights. So you could be faced with a mortgage. In addition, you must consider this, if someone is losing their home, do you really think they have taken good care of it? Most aren't the bargains people think they are.
2007-09-14 00:18:05 · answer #5 · answered by Alterfemego 7 · 2⤊ 1⤋
No. You might get title to the house due to a tax foreclosure sale, but you take that title subject to all existing liens on that property. So if you don't pay the mortgage the bank will foreclose and take the title away from YOU.
2007-09-14 00:20:51 · answer #6 · answered by AnOrdinaryGuy 5 · 1⤊ 1⤋
In most cases, you will have to buy the home from the taxing authority, although you may be able to get a substantial discount from market value.
2007-09-13 23:23:06 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Check out http://www.mortgagefigure.com there is lots of information on mortgages, refinancing, consolidation, bad credit mortgages, etc and may be able to help you.
2007-09-14 05:28:37 · answer #8 · answered by sideline2084 4 · 0⤊ 1⤋
when you pay the back taxes on a property, the property does become yours but you have to have a mortgage on it. If it was that easy to buy a home, most people would be doing it. You have to have homeowner's insurance and to do that you need a mortgage.
2007-09-13 23:22:53 · answer #9 · answered by Anonymous · 0⤊ 6⤋
Yes ..that is true...I saw in television many programs based in investments that provide to you the right information to buy houses in couples Townsend's dollars and after to repair it..you can sell in 300..even half million dollars sometimes...the key is know where and how much cost..if you have the money..you can buy it .very shipper..and then that is the deal..
regards
p.s i don't know where you can find the information of the houses but is true that you said...for real...
2007-09-13 23:27:28 · answer #10 · answered by einhander17 6 · 0⤊ 8⤋