subject: Purchasing Houses for Back Taxes - How to Avoid Tax Sale [print this page] Purchasing Houses for Back Taxes - How to Avoid Tax Sale
No investment property holds quite the opportunity of purchasing houses for back taxes. There are enough of them out there right now to make anyone rich. Here's the least risky and most profitable way of purchasing houses for back taxes - outside the auction.
1. You're going to skip the tax sale. Too many competitors. Everyone and his brother is at the tax sale these days - this means no good deals. Also, this property is uninspectable. You have to buy it and cross your fingers it's not trashed. Obviously, buying at tax sale won't work - you'll need to try something else.
2. The best time to buy property is after tax sale - at the end of the redemption period. Mortgage companies will have bailed out mortgaged properties by now, so all that's left is free and clear property. The owners that still haven't redeemed are probably planning to let the property go to the government. And this is exactly what you want to be looking for.
3. Obtain the tax-delinquent owners' contact info. This information can usually be found fairly easily on the web. You can then contact them via email, letter, or phone. (Phone usually works best.)
4. Ask the owners if they'd mind signing their deed over to you. Remember, these owners don't want the property, so offer around $200 for their time. If you don't think this will work, just try it for yourself - you'll be amazed how many owners just want the deed out of their name as soon as possible.
5. Sell the property before the end of the redemption period, or pay the taxes and keep it. If you've decided to keep the property, get the tax situation taken care of as soon as you can. Or, take a few thousand (or more) in profit by selling immediately to another interested investor.
This is by far the best way of purchasing houses for back taxes for pennies on the dollar. Strike while the iron is hot - the foreclosure rate has produced a huge number of foreclosures for you to go after.
