I was told you can buy a house at one of these government tax foreclosure sales for about $600, and the house is worth a whole of alot more like a house of the value of $180,000. All you have to pay is the property tax light, water... and the house is legally yours? Has anyone else heard about this, is what I been told accurate? Where else can I find out about this type of sale my self, Thanks for your help.
2007-12-23 03:43:06 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
You are looking for are tax sales and sheriff sales. These are typically posted at your local county court house. Go to the court house and ask at the assessment office, or tax claim. One or the other will send you where you want to go. Every so often they have auctions for the properties.
Where you have to be careful is if you purchase a property that still has a mortgage lien on it. You buy it for back taxes but you are also buying the old mortgage too. You'll have to do a title search of sorts to see what else, if anything, is owed on the property. With declining values, bad mortgage choices, etc you can purchase a property that has more owed on it that it is worth (negative equity).
Sometimes financial institutions that hold mortgages on these properties will purchase the properties at those auctions. Then they may put it with your local real estate agent. There are some deals to be had at this level as well.
Good luck.
2007-12-23 05:46:10 · answer #1 · answered by DLK 2 · 0⤊ 0⤋
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2016-04-22 00:11:40 · answer #2 · answered by ? 3 · 0⤊ 0⤋
What you have been told is grossly inaccurate. In those states which offer 'tax lien' sales, you buy the tax lien, and, IF the owner does not redeem the property under law, you get the property, ALONG with any other outstanding liens, which include mortgages owed. You might think you got a deal, only to find out that you bought a property worth $180K, with $200K worth of liens against it.
In those states where auctions are held to dispose of properties due to back taxes, you can expect a veritable crowd of bidders there who will bid that property up to not far from actual market value.
You CAN get deals at such auctions, but there's NO way you're going to buy a $180K house for $600. That's thinking akin to Fool's Gold being worth a fortune.
2007-12-23 09:25:51 · answer #3 · answered by acermill 7 · 1⤊ 0⤋
It sounds like you are repeating an ad you saw on tv. I don't know what happens elsewhere, but in my state there are a handful of companies that come in and buy tax certificates on properties with delinquent taxes. Once they have purchased 3 tax certificates (meaning property taxes have not been made in 1-1/2 years), they can foreclose on the property. If the owner cannot pay what is owed, then the company takes it.
I have not heard of individuals purchasing property this way.
2007-12-23 04:02:12 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Not true because the mortgage company still has a lien on the home. Just because it was tax foreclosed doesn't mean you get it free and clear. Beware of action to quiet title in this case. The mortgage lender will more than likely fight you.
I imagine if they couldn't pay the taxes the home definitely was not out from under mortgage.
2007-12-23 04:17:25 · answer #5 · answered by Veritas et Aequitas () 7 · 0⤊ 0⤋
yes, you pay the back tax,s and any outstanding utility's,but be aware if the home is still in the delinquent tax payers name, some states require you to give the original owner a set time period to repay you,before finely ownership is turned over to you, you need to check with the town or county where the property is located.you will want to find out this information before you put your money. play it smart and you can make money.good luck
2007-12-23 04:23:03 · answer #6 · answered by Anonymous · 1⤊ 0⤋