Are There Pitfalls to Buying a Home From a Delinquent Tax Sale?
The answer to this question is yes, yes, yes.
There are lots of risks that come with buying a home from a delinquent tax sale, and there's just no reason to take those risks.
Here is why buying property from the tax auction is too risky, and how to get around the auction and get an even better deal on your property.
When you buy property at tax sale, there are a few things that you probably don't realize about the process.
The first is that you can't inspect the property.
The best you can do is drive by the house and see if it looks well-kept.
There's no way to tell what's going on inside the property or with its structure other than eyeballing it.
As you can imagine, people that can't pay their taxes often can't afford to maintain their property either.
The second risk that's also related to the property's condition is the waiting period between when you buy your lien or deed, and when you can actually foreclose.
This is almost always a year, or much longer.
Even if the property is in okay condition when you buy it, sitting vacant, or worse, being inhabited by people who don't care will often result in deterioration.
If you were able to get a really great deal on the property, these risks might be worth taking -- if it weren't for the fact that there's a much easier way to get the property that ensures almost no interest from competitors, and that you'll get an even better deal than you would have at the tax sale.
The best thing to do is to wait until after the tax sale happens.
You can then use the fruits of other people's research for yourself.
Check which properties sold at tax sale.
The ones that didn't are likely worthless.
The ones that sold for a lot are probably the nicest properties.
Now, look for the owners of these properties.
It's still legal for them to sell you their property during the redemption period.
You will find a few things here.
These owners are, for the most part, ready to sell and be done by now.
Those that can bail their taxes out have already; those that can't, know now that they need to sell to avoid losing everything.
This is the time when you can find owners who have already decided to let the property go who are willing to essentially give you their deeds, just to be done with the process sooner.
It's not unusual to pick up several deeds in one area for less than a thousand dollars total during the redemption period.
Think about the profit potential there.
Then, you just pay the taxes and keep the property, or find a buyer quickly for a price that still allows you a nice profit, and let them deal with the tax issues.
It's really that simple.
There are lots of risks that come with buying a home from a delinquent tax sale, and there's just no reason to take those risks.
Here is why buying property from the tax auction is too risky, and how to get around the auction and get an even better deal on your property.
When you buy property at tax sale, there are a few things that you probably don't realize about the process.
The first is that you can't inspect the property.
The best you can do is drive by the house and see if it looks well-kept.
There's no way to tell what's going on inside the property or with its structure other than eyeballing it.
As you can imagine, people that can't pay their taxes often can't afford to maintain their property either.
The second risk that's also related to the property's condition is the waiting period between when you buy your lien or deed, and when you can actually foreclose.
This is almost always a year, or much longer.
Even if the property is in okay condition when you buy it, sitting vacant, or worse, being inhabited by people who don't care will often result in deterioration.
If you were able to get a really great deal on the property, these risks might be worth taking -- if it weren't for the fact that there's a much easier way to get the property that ensures almost no interest from competitors, and that you'll get an even better deal than you would have at the tax sale.
The best thing to do is to wait until after the tax sale happens.
You can then use the fruits of other people's research for yourself.
Check which properties sold at tax sale.
The ones that didn't are likely worthless.
The ones that sold for a lot are probably the nicest properties.
Now, look for the owners of these properties.
It's still legal for them to sell you their property during the redemption period.
You will find a few things here.
These owners are, for the most part, ready to sell and be done by now.
Those that can bail their taxes out have already; those that can't, know now that they need to sell to avoid losing everything.
This is the time when you can find owners who have already decided to let the property go who are willing to essentially give you their deeds, just to be done with the process sooner.
It's not unusual to pick up several deeds in one area for less than a thousand dollars total during the redemption period.
Think about the profit potential there.
Then, you just pay the taxes and keep the property, or find a buyer quickly for a price that still allows you a nice profit, and let them deal with the tax issues.
It's really that simple.
