pre forclosure tax lien

Has anyone worked with owners whose properties had tax liens or deeds sold at auction.

Most auctions are over now but I was wondering if approaching the owners working in a preforclosure mode would be a good approach.

In our state all IRS and Property tax liens have to be paid in full before any title can be taken.

I don’t understand your last statement.

I guess my thinking is this

property goes to tax sale. lein is bought. With the thought that they will not satisfy and the purchaser will forclose

Just like a bank forclosure you approach the owners, buy the property by paying the tax lien and assuming or doing a sub2 on the rest of the property.

Its’ just a thought. probably flawed but I’m sure you folks will straighten me out…

If you are buying tax liens to get property - its not the way to go. Most tax liens are paid off well before the time for foreclosure which is 3 years in our state or more. Waiting that long to get a piece of property is silly IMO. Looking for properties in pre-foreclosure would be a faster way of getting a property.

Tax liens used to be a great way to get high percentages of interest (like 16%) on your money, but these days people have the impression you can get the property easily. Not so. Buy them for the interest you get on your money (short term).

I think there are lots of very mis-informed people buying tax liens.

Thanks for the reply,

it’s something that is very new to me. I just went to a tax lien auction in DC.
6 month wait to forclosure.

in MD, happened in May, it is 4 month wait.

Anyone done these in DC or MD and have any input.


Are you saying that if you don’t pay your real estate taxes in 4 months after the certificate is sold - you can get foreclosed? WOW - that’s bad. If that’s true, maybe investing in IS a good idea. LOL

I"m not saying I know everything or anything about this. You tell me.

tax sale in DC just happened. 6 months before forclosure can start.

Monthgomery county had theirs in June, says 4 months.

Really, I don’t know much about this, it’s new to me, I just went to sale in DC with a big investor that bought a lot of property, 18%, 6mo.

I don’t know how DC works. Our sale is every February. You buy the liens, pay for them and wait for 3 years. If they are paid before that - you get your money back plus interest. If they don’t, you can foreclose, but it will cost you legal fees, etc. Most times the owner pays the taxes when they get a foreclosure notice. Then you’ll get your money, interest, legal fees, etc. back.

I suggest you look online for some DC tax lien info.

<<I don’t know how DC works.>>

To be honest and fran, it doesn’t!



why do you say that? This is my first experience with tax liens. I went to the auction with a ‘mentor’ that ‘says’ he does very well with this.

he bought 17 certificates, says if 3 foreclose (6 months) he will have a good year on liens. Meanwhile he makes 18%% on his ‘investors’ money. Money he says he gets at 12%. so he makes 6% for going to the auction. If it forecloses he pays attny and other fees. IF the owner takes it back he has to be reimbursed for expenses plus the interest. Money that isn’t even his. He just guarentees 12% to his investors. Everything else is his.

To be honest I have never done this. I have flipped many properties and other RE deals and am actually working something else right now concerning ACLF.

I was just curious. If a tax lien can force foreclosure can you work it like a pre-forclosure approaching the owner.

What is your ‘specific’ experience with DC tax liens…or any other.

All of the input from everyone is appreciated! Really like the site. I’ve learned a lot in a short time.

Wish all good investing.
Thanks to you all.

That was a joke - he was saying nothing works in DC - politicians, etc. HAHA :wink:

Duh, sorry about that. ;D

Exactly…I left there because nothing works (roads, schools, etc., etc., etc.) and very few people do either! The city has no authority, it’s all up to the Feds – the mayor is either a do-nothing figurehead or a puppet for the congess…and the city populace is not represented in congress except by their useless, oxygen-thieving Delegate!


Well, outside of that how did you like it. :wink:

Not bad…the pay is good there and they’ve got some cool museums/monuments for free…good place to visit/sux to live there!