Tax foreclosure properties are homes or other real estate that are sold to investors. They are usually acquired when an owner doesn’t pay the property tax that is associated with the real estate they own after three years. The property is granted a two year time frame in which the homeowner is expected to pay what is due on the property. If the account is not made current within the two years, the property is deeded to the county. These homes are then placed up for auction and sold to the highest bidder. The new buyer holds the rights to the home, as long the money owed is not paid.
Greenie real estate investors are able to acquire these properties at low prices. These properties can be found in a number of places and and markets and are listed in newspapers and periodicals as well as online. In order to buy a home, the hopeful homeowner must be present at the auction. Bids starts small, but can escalate. Depending on where you live, you may be charged a 10% non-refundable fee when you buy. A temporary certificate is given to the owner at the time of sale until a deed can be prepared. This deed is normally prepared and sent in about 60 days.
All properties sold at these actions are sold “as is” and are conveyed through a quit claim deed. If the buyer of a property does not respond to the notification after about 30 days, then failure to finalize the new purchase will result in the loss of the down payment. The property is then offered to the next highest bidder or placed back in action block for the next available action.
These real estate properties are pretty easy to find either through local public records or online. Contacting a Realtor is a useful way to find great deals. Make sure you investigate the real estate because a lot of them need extensive work and repair. But, if you’re up fr the challenge, the investment can be very rewarding.
First, you need to settle on a geographical location to search for these tax foreclosure properties. If it is not in your area, you’ll need to weigh the traveling costs. Get as many estimates you can of what the property is really worth and what the cost of repair will be. Do this before you buy. Make sure that you understand the rules involved in the auction as the rules can vary in each state.
If you want to find out more about tax foreclosure properties, then visit No Risk Investor and see how to choose from among the best tax lien foreclosure properties.