Buying A Home With Back Taxes - The Easiest Way

Buying a home with back taxes is easier than you think

. However, don't let anyone tell you that it's as easy as going to the tax sale and paying the back taxes on a property. Homes sold at tax sale are generally sold to the highest bidder, and this go way above the amount of taxes owed. You'll never get a good property for a bargain this way. Buying a home with back taxes for close to the amount of taxes owed can be done, however - by buying directly from the tax delinquent owner himself.

The key is to wait until after the home has already been "sold" at tax sale. What really happens is, a bidder buys the right to apply for the deed, only after the owner has a final chance to redeem the property (during the 1 year or so "redemption period"). It's during this redemption period time that buying a home with back taxes from the owner is easy.

The redemption period is "do or die" time. Many who've held out hope that they'll come up with the money to redeem are now ready to face up to having to move and sell, if they don't want to lose everything to the government. These are extremely motivated sellers, and there are a lot of creative ways to go about buying a home with back taxes from these sellers during this time.. You can buy the option to sell to someone else, and then quickly flip the property to another buyer, pocketing a nice sum without ever owning the deed. You can buy the property for very little, and rent the property back to the owner. Or, some owners are ready to sign off on the deed, with just payment for their time to do so - $200 or less, in some cases - just to be done with the whole situation.

If what you're looking for is a quick way to make money from back tax homes, you will definitely want to look into the overages created at tax sale. This is the amount bid over what was owed in taxes on a property. These funds are generally held for the former owner to collect. Unfortunately, most owners don't know about the funds, and move on without collecting them. After a while, the funds escheat to the government.

Since these funds are held outside the state level, they are generally not subject to finder's fee limits. So, if you find the records of the funds, find their owners, and get an agreement to take a percentage for your information, you can legally charge 30-50% per transactions. These funds are often $10,000 or more, so you can make a lucrative side business just by collecting overages if buying a home with back taxes isn't quite up your alley.

by: Maggie Dawson

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