Tax foreclosure properties are properties that are auctioned off to the open market. These properties occur when a homeowner fails to pay their real estate or the property taxes associated with that address after three years. The property is then allowed a two year redemption period in which the owner is expected to bring the account current. If the account is not made current within the two year period, then the property is deeded to the county. The properties are then placed in auction and sold to the highest bidder. This bidder buys the rights to the property, as long the tax liens are not paid.
Newbie real estate investors are able to buy these properties at well below market prices. These types of properties can be found in a wide range of places and can be listed in newspapers and periodicals as well as the web. In order to purchase a property the bidder must be present and the bidding starts at a minimum bid. Depending on your state, you may be charged a 10% non-refundable down payment at the time of purchase, or other such fee. A temporary certificate is given to the buyer at the time of sale until a deed can be prepared. This deed is normally prepared within 60 days of the action.
All properties sold at these actions are sold on an “as is” basis. If the new buyer of a property doesn’t respond to the notification after one month, then they will lose their down payment. The property is then offered to the next highest bidder or bid on again by new bidders and other hungry investors.
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.
After you find a nice area to search for these tax foreclosure properties, you’ll need to weigh all costs involved. Get as many estimates as you can of what the home 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.
Learn more about tax foreclosure properties. Stop by No Risk Investor where you can find out all about government tax foreclosure properties and how you can profit by them.
categories: tax foreclosure properties,tax deed sales,tax lien investing,tax deeds,real estate,small business,business,general
0 Responses
Stay in touch with the conversation, subscribe to the RSS feed for comments on this post.