Can you buy homes for sale due to back taxes? More specifically, you may be asking: ‘Can I find back taxes homes for sale near me?’
The answer is yes! Homes are being sold across the nation regularly for pennies on the dollar without going through a bank foreclosure. These tax homes for sale due to back taxes are often an excellent investment.
Why does this happen? Because local governments rely on collecting county tax through property taxes to fund their budgets. When these taxes are not paid, the local board goes through a tax foreclosure process to collect the past due taxes.
How Do You Buy a House With a Tax Lien?
How do you buy a house with a tax lien? There are two basic types of tax sale: the tax lien and the tax deed. These are sold to the highest bidder at auction. Regardless of the kind of sale, the end result is the same for the investor with the winning bid.
1. When you buy a tax lien, you get your money back plus a healthy rate of interest; or,
2. With a tax deed, you wind up owning the property for the cost of the back taxes and maybe a little extra to complete the foreclosure process. Your property is sold at a discounted rate (if you choose) and you make a really good profit.
If you pay someone’s property taxes, do you own the property? Most of the homes for sale due to back taxes are redeemed by the owner or the bank. You still get interest if this happens. The mortgage holder is very interested in redeeming the property because these kinds of sales eliminate any attached loans on the property.
If you are more interested in buying a home than making a profit on the interest, then a tax deed sale is your best choice. The tax deed sales gives you immediate access to the property. A tax lien sales does not.
Want to learn how you can make big profits from homes for sale due to back taxes? Would you like to buy tax sale properties for pennies on the dollar? Or earn double-digit interest rates? Then get started today with this FREE mini class!
How To Find Back Taxes Homes For Sale Near Me
Here’s how to find tax homes for sale in your area. Homes for sale due to back taxes have to be advertised, most often in the local newspaper.
As many newspapers are online and offer access to their legal notices section at no charge, this is an easy way to find homes for sale due to back taxes anywhere in the country. However, it’s not quick.
Some states allow quarterly sales; some states have annual sales, and some states allow each community to decide when to have sales.
Decide where you’d like to invest and the call the taxing authority for that area. Find out when they have sales. Once you get the dates, then you can look in the newspaper for the advertised properties or request a tax delinquent properties for sale list from the tax-collecting agency.
What Do I Do With My Back Taxes List?
With your houses for back taxes list in hand, look at what’s available and what neighborhoods you want to buy a house in. If you’re looking for a house to live in, then location is probably going to be more important than if you are buying a house to resell or rent.
If at all possible, go in person and look at the house. You cannot do an inspection on the property, but you can get an idea of what it’s worth from the outside and what the neighborhood is like. If external repairs are needed, that’s also a pretty good indicator that inside work is going to be needed too.
If you can’t visit in person, Instant Street View, Google Street View; or similar websites can give you a street level view of the home. Other programs provide a satellite view, allowing you to see the neighborhood as a unit.
What You Need To Know About Property Tax Auctions
Tax-defaulted property sales are conducted by auction. Some communities allow online bidding. Others require an in-person presence at the sale.
If online bidding is required, make sure to register. Then, show up. You can’t win the auction if you’re not there to bid.
Find out what the payment process is. Online sales sometimes allow a few days to complete the purchase; sometimes you’ll need to complete the sale with a charge card. Wiring the money to the tax authority may be permitted.
In-person auctions require you to complete the sale by the end of the auction. Call ahead of time to find out what forms of payment are accepted.
Once you buy the property, then talk to the tax collector about how to claim the house. Sometimes you’ll need to consult a real estate attorney to handle some of the paperwork.
Ted Thomas is a Florida-based author and publisher who specializes in tax defaulted properties. Ted Thomas is the only one who provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops & web classes, and personal one-on-one coaching.
If you’d like to learn more about homes for sale due to back taxes, which are sold at public auctions for 10, 20, or cents on the dollar or learn the secrets of tax lien certificates which pay guaranteed returns of 16%, 18%, up to 36%, then get started today with the FREE Master Class.