Tax Foreclosure Properties

mccleary97502 Said:

The laws vary with each state. In some you purchase only the interest of the tax delinquent owner, the mortgage holder will still have a lien against the property. In other states, the mortgage holder is given an opportunity to pay the taxes or loose their interest in the property. Most mortgage holders will pay the taxes, and foreclose on the property for allowing a lien against it. To avoid this is why most mortgage holders require you to pay them the taxes each year.

Tax foreclosures have a redemption period after the property is auctioned. The foreclosed owner can return and pay off the property plus an interest fee, and the purchaser is out the door.

The redemption period varies from state to state. So you could move in, fix the property up, and get moved out one year later when the foreclosed owner shows up with a check in hand.

In some states, the government agencies handle the foreclosure, in other states, the government agencies sell the tax debt to investors, who have to handle the foreclosures.

If you obtain a foreclosed property, offer the foreclosed owner a $1,000 to sign a quit claim deed. Most will sign and they no longer have a right to redemption.

They can be really good buys for long term investment of one year or more. You will get the house, or you will get your money back plus interest. Don’t plan on buying one and flipping it in a short time unless your state laws differ greatly from the norm.
References :
I have bought several of these homes.

Comment made on December 21st, 2009 at 4:08 am