I am looking at bidding on 1 or 2 TLC’s at my county’s online auction and was wanting to know what to exactly look for. I know what price range I want to stay in. It shows the value of the property but how do I find out if the owner has filed for bankruptcy or are there other bad indicators I should look for.
This is my first auction, I have read a few e-books but they did not give specifics as to what to look for and not look for.
Thanks,
Jeff
Anyone with any helpful advise??
Just found this in an article posted on this site, hope it helps. If you would like to read the entire article, here’s the .pdf link…http://reiclub.com/authors/barazandeh/taxlientaxdeed.pdf
hope all this helps…
Bankruptcy of the Delinquent Taxpayer: Tax lien jurisdictions work diligently to exclude liens from the sale that have pending litigation such as bankruptcy. Bankruptcy after the purchase of a lien however can create some risk for the investor. If a bankruptcy occurs after the tax lien purchase, don’t despair since all is not lost. The tax lien holder is customarily given high priority when the debts of the bankrupt estate are paid. Very seldom is the tax lien not paid off during a bankruptcy proceeding. The end result is a favorable rate of return for the investor. The only troubling scenario may occur in a Chapter 7 bankruptcy. Bankruptcy laws may allow the trustee to pay the expenses of administering the bankrupt estate before paying the tax lien. This is an uncommon practice and would require sufficient grounds, namely that the tax lien debt is so high that payment would make it nearly impossible to administer the bankruptcy. This is a difficult position for the bankruptcy trustee to win. Also if the investor follows certain cost guidelines when selecting a lien this risk can be virtually eliminated. In the end, even bankruptcy can have little effect on a tax lien investment if proper techniques are applied.
That is good to know about bankruptcy.
What are the key points to look for on the property information and tax information pages?
I was looking at one property and it said the tax lien was sold to the state of Arizona but is up for auction!
Thanks for your responses
if you get a chance to look thru that pdf, it is pretty insightful…accordingly, it says it’s pretty easy to chase down the lien/title info on a place…yeah right!!!
Arvana,
Thanks for all your help, I will read that PDF.