Nearly every community in the U.S. has houses for sale for back taxes, and they are easy to find if you know what Ted reveals today.
The topics we’re going to cover are:
- Tax Sales Occur Frequently
- Where to Find a Tax Sale
- The Priority of Liens on Property
- How to Buy Property With Delinquent Taxes
- Are Auction Properties Worth Buying?
Want to learn how to purchase bargain real estate? Would you like to buy mortgage-free property for pennies on the dollar? Or earn double-digit interest rates secured by real estate? Then you don’t want to miss this FREE Mini Course.
Tax Sales Occur Frequently
The stories about houses for sale for back taxes happening everywhere are true. These sales are common, held regularly and are conducted in just about every community in the United States.
Local governments around the nation rely on money from property taxes, also called ad valorem taxes, to fund their budgets. When these taxes are not paid, the taxing authority holds tax sales to get that needed revenue.
There are two kinds of tax sales: a tax lien and a tax deed. The kind of sale doesn’t really matter because the end result is the same. You, as the investor, either get your money back plus interest or you get a home.
Where to Find a Tax Sale
The first step is to find houses for sale for back taxes. You do this by calling the local tax collection department. The employees can tell you when tax sales are held. Some communities have them annually, some quarterly and some may have such sales irregularly.
You can also find houses for sale for back taxes in newspapers. Most newspapers have the tax sales online as part of the legal notices section where listings can viewed at no charge.
These newspaper reports contain the amount owed and the location of the property. The notices will not describe the physical condition of the home.
With this information in hand, you can decide how much to invest and where to invest.
The Priority of Liens on Property
A common question people have about houses for sale for back taxes is:
What about a bank mortgage or other liens against the property?
In general, they don’t matter. Tax sale law specifically sets aside a mortgage where houses for sale for back taxes are concerned. That’s why a bank will typically pay the past due taxes and add that into the mortgage. If the property doesn’t have a loan on it, there’s no note to set aside.
An exception to this are other jurisdiction’s taxes.
In Georgia, for instance, a property can be taxed by three different local boards. The County Commission and local School Board collect property taxes. If the property is within a city’s limits, that town council may also collect property taxes.
If you pay off the county taxes at the sale, you’ll also need to pay off the school board and applicable city taxes.
How to Buy Property With Delinquent Taxes
How do you buy houses for sale for back taxes at a tax sale?
The first thing you need to decide is how much money you’re going to spend. Then, call the tax collecting board and find out to register for the sale.
These sales are auctions. Some require you to sign up ahead of time. Some may require a deposit. For some tax auctions, you just have to be there for the sale. Some auctions allow online bidders.
Then, show up on time or login on time. Be a early if you can. Bid up to the maximum amount you decided to spend. If you win the auction, fill out all the necessary paperwork. The tax collector will tell you what you should do after this.
Are Auction Properties Worth Buying?
How do you know if houses for sale for back taxes are worth buying?
That’s a question only you can answer and you have to do some research first. You need to know what home values in that neighborhood are.
Find out as much as you can about the condition of the home. Can it be rented out? Do houses in that area sell quickly or slowly? Would a neighbor be interesting buying the property from you? Is it property you really want to own?
We hope you enjoyed today’s lesson, “Houses for Sale for Back Taxes Are Easy to Find”
Tax delinquent property auctions occur frequently across the USA. These auctions will be advertised on county websites and in local newspapers.
It’s well worth your while to consider tax delinquent property investing because tax sale properties can be purchased for amazing discounts, and you get the property without a mortgage. Lucrative profits can be made from this type of investing.
If you need more information on houses for sale for back taxes, Ted can help.
Ted Thomas provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops, web classes, and personal coaching with certified coaches.
Learn how to reap huge rewards buying and selling houses for sale for back taxes! Get started today by taking advantage of Ted’s Free Master Class! Act now, it costs you nothing and will give you a big head start!
Ted Thomas is America’s Leading Authority on Tax Lien Certificates and Tax Deed Auctions, as well as a publisher and author of more than 30 books. His guidebooks on Real Estate have sold in four corners of the world. He has been teaching people just like you for over 30 years how to buy houses in good neighborhoods for pennies on the dollar. He teaches how to create wealth with minimum risk and easy-to-learn methods.