Newbie Tax Forclosure Question

Foreclosures, Short Sales, Tax Foreclosures
1

I’ll try and set up the specific situation and you guys tell me what the odds are so I don’t spend the next 2months in self tortured agony over a non reality.

The house I’m lusting after is tax assessed at 620,000… zillows at 545,000 and of course is going up in a tax foclosure for a mere 27,500. The thing is the bank also forclosed on it’s main morgage 30 days ago. Bank bought it of course. 850,000 loan bloated dollars. The previous owners still show on all the county title stuff. The bank will have about 60 days before it is tax forclosure auctioned. Will they pay the taxes and assume control over the property or will it still go up??? If it does go up with the county… what are my realistic odds of aquiring it??? Pitfalls??? Is it possible to give a way below offer right now and also pay the tax debt??? What are my options?

Its a WA state auction for _____ county. I have 125,000 cash to spend and possibly more say a max of an extra 75,000 that I could pull together if I absolutly had to. This is not bank lent money and I don’t want to go there either. I’m a lowly teacher so… while I have cash… I still have to stay out of debt because my income is only around 60,000 with a second job. My wife stays home with the three kiddo’s in a small house. I don’t know how many of you have experienced a small single bathroom with 5 people, but I’m ready to assasinate my self. We’ve thought of all the remodle options, but I just dosent seem to make good financial returns sense… expecially not in this market where I’m not even sure I could sell my house.
Thanks for taking the time to read this!

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first thing to note is that there should be no need to spend 2 or more months in torturing anxiety with tax sales. Yes, you can start to follow properties ahead of time that you may be interested in, although you really only need to start researching about 2-5 days before the sale, depending on your experience. Since it sounds like you are a little new to this arena, you may want to allow a week or 2. The reason being, typically the prop. can be redemmed right up to the sale, which is what may happen in this case. There is always the chance that the bank or prop owner will forget or misplace the notices, so always keep checking on the property status.

I can’t tell you what are the odds of you getting the prop if it does go to the auction block. Id depends completely on who is at the sale that day, and how much moeny they are prepared to spend. $100,000 - $125,000 may just be the amount you get it for. HOMERUN!

Your pitfalls are making sure you see the prop in person, and also checking the state prop tax codes to see what, if any, liens or encumbrances will survive the issuance of a tax deed. MORTGAGES will be completely wiped out at the sale except for the state of N Mexico. You should always check the state tax codes for liens that may stay on the title, and then check the title to see if any of those liens or assesments are on that particular prop. I believe in Washington all liens are extinguished, however there is a link on this site that will direct you to all 50 states at the top left of the homepage.

You don’t have the option of paying the County ahead of time, unless you are paying them on behalf of the prop owner. As you can probably imagine there are ways to work a deal with the current prop owner, but these types of transactions are for the experienced tax deed buyer, and also may fall under non-ethical practices.

please let us know if you need any further clarification. I happen to know some people in the past who have gotten some really good deals on homes in your state due to the fact that there are not too many people who go to the sale. I wish you the best for this prop, it would really turn around your financial situation for the better. However, if you don’t get it, just go to another sale, and don’t give up hope.

Most likely since the bank owns it, they will redeem. However, I have seen many cases where they have dropped the ball and forgotten since they may have been focused on something else, and since they have such an overload of foreclosures and such to worry about.