Let's quickly talk about tax foreclosure properties and some reasons why one should buy them right now. Foreclosure properties come about when a bank or other party that has financial interest in a property takes whole ownership of the property through the foreclosure process. But that's not what we're talking about here; we're talking about tax foreclosure properties that are a bit different.
Every property owner is required to pay property taxes. When the property owner fails to pay these taxes, the county places a lien on the property. After a period of time the county forecloses on the property and offers the property for sale to investors. We call them tax foreclosure properties because the opportunity arises through the tax process rather than a typical foreclosure property. The foreclosure took place, not because a mortgage was delinquent, but because the property owner failed to pay property taxes. These properties are also known as tax deeds, tax deed properties, tax sale properties, or tax deed foreclosure properties.
Here are some main reasons to buy these properties:
- Discounted prices - the bidding often starts where the taxes are delinquent. That price can be as little as 5 percent of the property's market value. Depending on the investors present, the price may go up.
- Simplicity - once an investor has practiced this process, the strategy is quite simple and easily reproducible.
- Competition - compared to other real estate investing strategies, tax deed investing has less competition. Once you become comfortable with this strategy you will find that there are more properties available for purchase than you have money to buy.
These properties are sold through public auction. The auction could be held in many different ways. It could be held on the county steps, in an attorney's office, and sometimes online. The list of tax properties to be auctioned has to be posted by the county prior to the auction. It may be posted in the local newspaper, on a bulletin board at the county building, or on the county website. Of course, the auction and the listing of the properties can take place at other locations unique to the county. Check with your local county for specific information regarding the sale of local tax foreclosure properties.
No Risk Investor is the ultimate resource and tool for tax lien, deed, and real estate investors all over the world. No Risk Investor takes incredible pride in its ability to help students take action, get into properties, and begin the journey to financial freedom. No Risk Investor provides county lists, property lists, online auction lists, comprehensive training and education, an auction calendar, and online auction center, an investor community and much more for its members.
