Homes sold for property tax liens can be good deals for your buyers. Property tax liens are security interests against land to obtain payment of real estate taxation. Tax liens for real estate taxes are imposed municipality, or by the local government authority, that collects the fees. Towns, cities and counties are types of taxing municipalities. Some taxing authorities auction off properties with tax liens to public bidders in order to receive the money owed in back taxes. The winning bidder becomes the owner of the estate.
Read the regional newspaper’s legal section. Some taxing authorities publish notice of a tax lien purchase in regional books, and include the date and time of this auction.
Check the house’s municipality’s official website. Some local authorities sites have information regarding tax lien sales, including required deposits and a list of properties being sold. A tax lien sale list involves the number of taxes owed, so providing you an idea of this opening bid for the property. Interest and fees accrue daily on the tax lien sum prior to the auction.
Pay a visit to with the government building where the purchase will take place. A list of the delinquent properties being sold along with the amount owed will be available for public viewing in the taxation office. Check for updates on the list, as a homeowner can pay the taxes prior to the sale and maintain the house off the market block.
Find out more about the property that you would like to purchase. Consider all aspects, such as its age and what you can tell about the state of the property. Tax lien properties are sold as-is and generally can’t be inspected before the auction.
Follow all purchaser requirements. You may need to register with the tax collecting authority that is selling the property before the auction. Deposits may be required by some from all registered bidders. Familiarize yourself with the rules of the tax sale, such as how long the owner has to pay the tax liens and penalties straight back to you following the auction to maintain the house. Note how many times you have to pay the bidding in full to the local authorities following the day of this sale.
Attend the auction. Adhere to all rules and procedures for bidding, and possess the essential type of payment with you. Deposits on the properties may have to be in a specific type, like a money order or cashier’s check.
Place the winning bid. Limit yourself to a maximum bid amount for each property, to avoid losing money on a useless property. Auctions can become bidding wars, thus bring a record of your greatest bids for each land with you.