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    andersonmr's Avatar
    andersonmr Posts: 1, Reputation: 1
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    #1

    May 21, 2007, 05:39 PM
    How to buy a house on back taxes
    I am wanting to put a tax lien on a house the house has been empty for about 3 years and they owe 3 years back taxes and I was wanting to pay the back taxes.
    RichardBondMan's Avatar
    RichardBondMan Posts: 832, Reputation: 66
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    #2

    May 21, 2007, 06:08 PM
    Putting a tax lien on a property can't be done by an individual, company, etc, it has to be done by the government that is owed the taxes at least in most US states. I think you meant to say that you want to pay the back taxes to hopefully become the lawful owner. If that's the case, then the government will announce a tax sale and you can then pay the taxes, then probably will have to wait a certain length of time to allow the owner to pay the back taxes, then you may become the lawful owner. You might want to check with the state, county, parrish that levied the taxes to see exactly how this can be accomplished in your state.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #3

    May 21, 2007, 07:30 PM
    Yes, buying property at a tax sale is a interesting thing to do. Have you checked to see if the taxes are owed, ( you noted they owe 3 years back taxes) But after 3 years most likely the county will sell it at this years sale, ( unless a mortgage company or the owner pays the taxes prior to the sale) Also most states you buy a tax certificate which allows you to own the property after a certain period. This is called the tax redemption period. Some states don't have any, others have from one to three years after you buy the property that the formal owner can come and get it back. They are required to pay you the amount you paid, plus 10 percent interest. For example here in TN now there is a one year redemption period. When I was buying in AL they had a three year.

    Normally the sale is at auction to the highest bidder, the bid starts with the back taxes and penalties. The property can sell for much more than the taxes at times. Also you will find that about 70 percent of the properties listed for sale will have their taxes paid prior to the actual sale.

    So you need to ask the tax clerk when they have their sale in your county

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