Top 3 Reasons For Government Seized Property Auctions
The federal government has stepped up its efforts in seizing property and assets
brought through illegal means as a part of its program of combating criminal activities. This is done to achieve three simple goals. The main goal is of course improving law enforcement cooperation and enhancing law enforcement through revenue. The third goal is to get these illegally held properties back into main stream society.
It is believed that on an average, the government auctions off about 15,000 items to the general public annually with a gross sale of over 75 million dollars. Online seized property auctions are becoming popular because it gives the general public a great opportunity to buy homes, automobiles and or other such valuable assets at dirt cheap price.
There are many reasons why properties are seized and then put up for auction for the general public.
*Buying property using money earned through illegal means such as gambling, cheating or smuggling is a crime and hence seized by the government and auctioned away to cover the losses caused to the state.
*Tax debt is another reason for seizing of property. They are auctioned to make good the losses caused to the national exchequer and recover the tax dues.
*Real estate auctions can be because of default on payment of loans and accrued interest. The government is forced to act when the grace period lapses. Recovery is necessitated by the need to make good the mortgage dues.
Real estate is not only the most popular type of government property up for auction; it is the most lucrative too. The practice of selling well below the market price is what attracts buyers in droves to such auctions. Most of the times, these homes may require additional investments to make up for the missing amenities. However, despite this they still represent the best way to earn astounding profits especially when you are using them as a long term investment.
You can easily find out about government seized property auctions in your area. These auctions are now put online to attract a larger audience. Some government sponsored agencies even conduct the auctions online making it extremely convenient to bid for your preferred property. However, it is imperative that you conduct a physical examination of the property you are interested in before you participate in the auction process. This way you can be sure of what you are getting into rather than trust the government description of the property.