i just wanted some feedback from someone who has done this and how it went, was it easy, stuff like that. thanks!
Tags: Anyone, Bought, Certificates, Deed, Ever, Lien, Tax Certificates, Tax Deed, Tax Lien Certificates
i just wanted some feedback from someone who has done this and how it went, was it easy, stuff like that. thanks!
Tags: Anyone, Bought, Certificates, Deed, Ever, Lien, Tax Certificates, Tax Deed, Tax Lien Certificates
The auction is in February. You arrive and get a bidder number. There are 50,000 properties listed. Apx 20,000 of them have paid their tax in the weeks before the sale but have not been removed from the list. So you can never attend the auction hoping to buy 1 specific property.
When the auctioneer calls out a property, you raise your bidder paddle. If you win, you have 24 hours to pay cash or cashiers check. You are paying 2 years of back tax. You are not making a gift to the homeowner. The Treasurer checks a box called the “subtax” and enters your bidder number. That way the owner can not find out who you are.
If the owner does not pay up in 3 more years, you can go to court and get the deed to the property. All mortgages are wiped out. You will own the house free and clear.
If you wait 5 years, you don’t have to go to court. The Treasurer hands you a deed. You have to pay all 5 years of unpaid tax.
If the owner pays up the back tax, you get all your money back plus 16% interest (or more).
After many years of buying the tax liens (called CP’s) i lost money. I bought properties that were worthless. My money was wasted. I did get 16% on many properties but the profit was wiped out by properties that had horrible flaws that were not visible to anyone attending the auction.
It is easy.
It depends on the laws of your state. Some states give the mortgage holder a chance to pay the taxes or loose their interest in the property. In these type of states, you receive a free and clear deed to the property when you buy the tax lien.
In other states, you buy just the lien, and you have to try to collect on it just like you would if you loaned someone money to buy a car. That means a lawsuit to get a judgement, and then turning it over to a collection agency.
Other states have laws somewhere between the two extremes above. You need to check the laws of the state the property is located in, and find what you can do with the lien once it is purchased.