Question by PGHGal: Can you buy a house for tax sale before the actual auction?
Property next door to my own is going for tax sale. I very much would like to purchase it for the listed price- is there anyway I can purchase before it goes for auction? Also, (i am very new to all of this!) how does a tax auction sale work- are the bids known or are they all silent. I dont want to pay much more than the upset price obviously! I live in PA if that matters.
Best answer:
Answer by Michael T
Normally the listing price is the opening bid and is usually well below the final price. Each auction has different criteria to meet in order to bid. You may be required to be pre-approved for a loan, require a down payment if your bid is accepted, or many other requirements. You will need to check with the people performing the auction to get the requirements.
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Tags: actual, Auction, Auction Sale, before, Buy A House, Buy House, house, House Sale, Loan Payment, Opening Bid, People, Sale, Tax Auction, Tax Question, Upset Price
You could look up on the tax records and find the owner. Talk to them and see if you can buy it direct from them before the auction.
As to how the auction works you need to look online and find the rules for your area. Some places it don’t by sealed bits, and some places it a normal action.
You could buy the property from the owner at whatever price they (or their lender) is willing to sell it for. But simply paying their taxes now would get you nothing (except maybe a thank you from the owner).
You have to go through the tax sale process and follow all the rules if you want to acquire it that way. And then it is quite possible that you will just get your money back with interest if the owner or lender redeems the property (pays the tax and interest/penalties to not let it go for pennies on the dollar). You would have to check what procedures are in your state are required before you can actually get a deed to the property.