Tax Foreclosures


I am interested in pursuing tax foreclosures. Do you handle potential client contact just as you would a mortgage foreclosure? In other words, if I pay the taxes in arrears, from the the Tax Assessors perspective, it doesn’t go to auction, and whatever I work out with the defaultor(property purchase, etc) may take place?

Thanks for the reply in advance,

My sister did one a while back. somehow she found out a property was going to be auctioned for unpaid taxes. She found the owner (out of state), wrote him a letter and enclosed a contract. Turns out he was very sick, wasn’t going to get better, wanted to unload the house and avoid the tax issue. He signed the deal and she got a $60,000 property for $10,000 plus back taxes of around $3k.

I certainly wouldn’t pay the taxes until after (or maybe at) closing.

Thanks for the information Mark!

And is a tax foreclosure the same as a Trustees foreclosure and how is that different, if different, from the sheriffs sale? In other words, what are all the different type of foreclosures and how do they differ??? Very interested in learning, thanks!

tax foreclosures = when you dont pay property tax. depending on
state law, a tax foreclosure might be from a year to 20 years. (think new jersey requires you foreclosured within 20 years - lol)

trying to compile state info and stuff, this is a long term project
(as Iam busy with work and all)

ya you’re right many types of foreclosures not just foreclosure

sheriff, non-judicial, judicial, tax foreclosures, IRS foreclosures?,
hud, va etc…

Check your state laws- every state is different! In New Jersey, you purchase Tax liens (New Jersey does not auction the actual properties)- you cannot contact the homeowner until the redemption period for the lien has passed (which I think is 2 years?). In the meantime, you would have to buy the liens for the intervening years, if the homeowner continues to be delinquent. Once the redemption period passes, you must foreclose to gain possession of the property. And yes, you must foreclose within 20 years or you lose the right to do so.