Let me warn everyone ahead of time, I am a newbie and am not trying to complete any deals quite yet as I am still in my researching/studying/learning phase. I have come across a few questions though and I’ve realized what a great resource this board is.
I am interested in tax foreclosures, going to the auction and buying the properties for sale. While I realize that it is dependent upon myself to see the property beforehand and I do realize there is a redemption period; I have a few other questions.
What if there was a mortgage on the property? If the property only goes for min. bid, then does the mortgage become a 2nd lien that I would have to pay upon selling the property?
(I did read on one lawyers website that represents my county that they contact the mortg. co. ahead of time and either give them the option to buy the property or else they relinquish their interest in the property, but only a title search could say for sure.)
Do I have to hold the property during the entire redemption time frame (2 years in some cases)? Or can I have my attorney draw up a seperate addendum stating that the new buyers realize there is a redemption period on this property until X time and that if the owners come back with all required funds; they must turn the property back over to them.
It also stated in several counties that it could take 4-6 weeks for me to get the physical Sherrifs Deed for the property, I cannot sell it until I have that correct? The sale will be recorded the day of, but must I hold for that 6 week time frame?
Thanks in advance, again I am trying to figure this all out and am just asking questions as they come to my mind.
Teresa
I can tell you if there’s a mortgage on the property, more often than not, the mortgagor pays the taxes. Otherwise, the mortgagor is wiped out b/c the tax lien is always before them in position.
Thank you, I’ve had a chance to skim the article and it looks good. The other main concern at this point is whether I have to hold the property the length of the redemption period or not. Thanks again for the article, I am going to go scour the internet here in a bit to see what other information I can find.
Thanks for the info., I was looking online at that course and was going to ask about it. I googled the author and found his website and some helpful reviews. I figured though most of the information you are paying for is all public knowledge and could be found with some searching. The nice part though is he has already complied the information for you, so I am still considering buying the course. Thanks again.
Mortgage liens are wiped out in tax foreclosures (most jurisdictions).
What state? All depends on the state.
You can start getting a contract on it and have it close after the deed recording.
Some of my favorite tax lien books you should consider (avoid $400 courses):
[ISBN 0978834682] Complete Guide to Real Estate Tax Liens and Foreclosure Deeds: Learn in 7 Days
[ISBN 0793195179] Profit by Investing in Real Estate Tax Liens: Earn Safe, Secured, and Fixed Returns Every Time
Texreagent: Let me say that in the bigger counties in TX, the tax auctions can be a madhouse with the tons of people bidding up prices. That’s why I recommend the course I said ealier. He provides legal ways to get around that process & still make $.
Thank you both, I had to leave town to head to Houston on short notice. I will definitely check out the books that Jardhead recommended. I am still considering the course for taxes (only $100) because I think it will be useful. Thanks again, I am getting excited and have an appointment with my RE Atty on Wed. this week.