subject: Purchasing Real Estate At Delinquent Tax Sales [print this page] When it comes to buying real estate, there are a few ways you can purchase properties that are being sold because of past due taxes. One very popular way is through delinquent tax sales that are held to help city governments collect on the lost revenue. You can use lien certificates to purchase real estate at a price that is usually significantly lower than the average market price. When property is being sold at delinquent tax sales, the property is being auctioned off, and the person who bids the highest gets to purchase the property. If you take the time to learn how to invest in real estate that has a tax lien associated with it, you can make one of the best investments of your life.
There are a few things you need to do to make sure that you are getting a good deal at delinquent tax sales. Learn what you can about the property in question. You need to do some research to find out if the property is available through delinquent tax sales. Any property that is sold through a tax sale, the property deed is automatically transferred to the highest bidder. There is still a small time frame where the original owner can redeem his or her property if they pay off all of the delinquent fees.
Each state and jurisdiction has different policies regarding property auctions. It is in your best interest to learn about the policies so you know what your rights are in this type of real estate dealings. Many jurisdictions often have certain property auctions once every year. Learn all of the rules for the auction beforehand so you don't have any problems when you are ready to bid for property. Don't forget to learn what the estimated value and property size is of any piece of real estate you are interested in.
Before the auction, you should find out if you can visit the property and take a tour. This will allow you to learn more about the property in question and to see if you are getting a great deal. Chances are the home is still going to be occupied. You can still drive by the property and get a good idea of what the outside and the neighborhood look like. You can also research the property values of the neighborhood so you have a better idea of how much that particular property is worth.
Before you start any auction, think about how much you want to spend on real estate. Keep in mind that most property auctions require that bidders put at least 25% down if they end up the winner. The remaining balance must be paid within five business days. If you plan on using financing, you need to have everything taken care of before you start bidding.
Before you purchase any property from delinquent tax sales, make sure that you take the time to learn all of the rules and regulations in the jurisdiction that the property is located. Don't bid more than you can afford.
