View Full Version : Tax liens on property
rosemaryjohn
Oct 14, 2008, 08:04 AM
I am a single mom with four children and want so much to have our own house I heard that if I paid on a house that has back taxes that I might have a chance there of oweing my dream house.
ScottGem
Oct 14, 2008, 08:11 AM
The chances are very slim. First, if a house is sold for back taxes, its generally done at auction. Second, if the house is mortgaged the lender will likely pay the back taxes to protect their interest. Thirdly, if there is no mortgage, iuts likely the property has been abandoned, and, by the time its sold to pay taxes, its in a bad state of disprepair.
You can't just pay the taxes and hope to claim ownership. Doesn't work that way.
Fr_Chuck
Oct 14, 2008, 08:20 AM
I buy a lot of tax properties, and seldom see any "dream" property. First the laws vary by state, in may you merely buy a tax certificate that you have to hold and pay taxes on for one to three years before you can redeem it for the actual deed.
In some states you will get the real deed but will also have any federal liens that may be on that property ( normally is not but could be)
Next they are sold at auction, normally the price is the amount of the tax, and they are normally not sold till they are two or three years late. So the starting bid will be @ 3 years taxes on the property.
The bidding can go up to many times this amount on really good property.
Most I get have all the windows broken out, maybe the doors kicked in, One had a 4 foot hole in the roof and a lot of water damage.
So if you are a do it yourself type of person it may work for you.
Also you have to have cash the day of the sale so lets say the tax is 2ooo dollars, three years would be 6000 dollars you have to pay in cash day of sale.