The place that my parents are living in has been issued a notice for tax sale. The taxes are very little, ~3000 that are owed, and must be paid by the 4th or the property will be posted publicly. I’m new to tax sales, and buying properties in general. I suspect that the landlord will come up with the money to pay his taxes, but in case he didn’t, how would I jump on this deal? How can I get to the front of the line, so to speak, if it were to get posted publicly? Can I contact the landlord and offer to pay the taxes for any advantages in return? Any experience you guys can offer is greatly appreciated! Thank you for reading!
Chris
Actually, I just remembered reading somewhere that if it did go to a tax sale that the bank would have a representative there to bid on its behalf to recover their losses. I know I’m missing much more information and that this will probably never work out, but at least I’ll gain more knowledge on the subject for future deals. Thanks again guys.
Chris
REI_Chris - tax sales varies depending on where you are. In my state investors bid down on the interest rate they want for the note. For example for a $3,000 tax sale, investors would bid how much interest they want starting from a maximum interest defined by the state. The investor that bids the lowest interest wins. Once you buy the tax certificate you have to wait a number of years (in my state it is 3 years) before you can foreclose on the property. During that time the homeowner can redeem the certificate by paying the back taxes. You get your money back + the interest you bid on. You will need to monitor the situation as future taxes will need to be paid, otherwise they will be auctioned again and someone else could get them…
My suggestion - do a search on the internet for tax sale and the name of your state. Look for your state’s official web site.
Good luck!
PS: I believe this is the strategy that that guy (John Beck???) advertises on tv - buy properties free and clear for pennies on the dollar.