I have a few friends wanting to buy their home from a tax-lien preforeclosure. One of my friends said her friend’s daughter bought one that way. Is this different from tax lien things? We see it on T.V. as buying the property free and clear by what the back taxes on it are. You do that before foreclosure - I understand. Does anyone have anything to say to me along these lines? :rolleyes
bjean
Hi, sounds like you are confusing tax liens and tax deeds.
When you buy tax liens, you are not buying the property. You are buying an assignment of the county’s lien for back taxes on the property. The owner has a fixed amount of time to redeem the lien, that is pay the back taxes plus interest owed.
If they do not do that in time, you may be able to get the property. The exact procedure varies wildly from county to county. It could be as simple as giving the homeowner a 60 day notice, or you may have to start a judicial foreclosure to get him out.
And don’t take for granted that you will get the property free and clear, despite what John Beck says on late night TV! It varies from county to county.
If you buy a tax deed, on the other hand you are actually buying the property. Generally this is done via auction. Here you are almost assured of getting the property free and clear, IF the county has dotted all the i’s and crossed all the t’s when taking the property.
I would check with a knowledgable lawyer in the county where the property is located to get the exact rules and requirements. If you are inexperienced and don’t do your homework, you could get burned, no matter what they say on tv or in the courses.
Bill
…like many other people did. Real Estate Attorney is the Must in these kind of deals.
Bill, thanks so much. Yeah, I was just calling “it” as I saw it on T.V. and I thought someone would say, “talk to an attorney,” as, yeah, each county would be different. I love it when you folks show up like this!! I’ll talk to an attorney and go from here!!
Great reply back to me, Bill.
Bonnie