Need A Home? Tax deed and tax liens are a great way to find a home for sale and then get that home on the cheap.
It is possible to buy a home for pennies on the dollar in the United States today. This kind of home for sale is not found through a real estate agency or Craigslist, but at the courthouse or city hall.
When people do not pay their property taxes, the local governments have to get their money somehow. That’s done through a tax lien or a tax deed sale. The local government records a tax debt lien on the property and then sells that lien it at a public auction.
You’ll find these kinds of sales all over the country. Some states have such sales quarterly and some do it annually. Check with the department of revenue in the state to find out how often such sales are conducted.
HOW TO FIND A HOME FOR SALE
Here are some simple guidelines to follow if you need a home.
Step one in this process is to decide what kind of community and which state you’d like to buy a house in. Do you want to live in the mountains, the beach, big city, suburb or rural areas? Do you want the South, North, East Coast, West Coast or the heartland?
Every kind of area and state has a home for sale under these tax sales.
Step two, decide how much you’d like to spend and make sure you have the money. It’s no joke to say that a good beach house can sell for less than $5,000. A mountainside retreat could be yours for less money than you get back on your income tax refund.
More and more tax deed and lien sales are going online, Each state has a department of revenue that can tell you how often tax sales are held. WIth that information, go to the community where you’d like to buy a house. Call the local government and ask when the next tax sale will be held.
When you have the dates for the sale, the local newspaper is your the best source of information. Every home for sale in the tax sale will be listed in the paper. You can get address information from the listing. Using online mapping and street view services, you can get an idea of the home’s condition. You can even learn about the neighborhood.
IF YOU NEED A HOME, CONSIDER BUYING YOUR HOME FOR SALE AT A TAX AUCTION
Make sure you set aside time to attend the auction. Some of these sales allow online bidding. Some require in-person bidding. If you are the successful bidder on a home for sale, you may have to pay at the end of auction. If you’re bidding online, you have a few days to make the payment.
You should also check with any other local government which may have a past due tax lien. A county board, a board of education and a city each could have a lien on the same property. You’ll need to settle these taxes.
You need to understand your rights and what happens before you can move in. Each state has different rules for redeeming or foreclosing to claim the property. The state department of revenue can explain this.
Need to know more bargain real estate? I offer a series of instructional videos which discuss tax defaulted auctions and how to avoid risk. In these must see videos I’ll reveal the inside secrets of how people are doing exactly what you want to do. Go to tedthomas.com