Do you want to purchase a new home or several properties, but don't want to spend a ton of money? Have you been wondering what happens to properties when the taxes aren't paid on them? Then the perfect opportunity you need to learn more about is a delinquent tax sale. This is where you can purchase properties for a small percentage of what they are worth. This type of event is offered by local governments at least twice a year. The reason why you may not be too familiar with this offering is because many counties put out public notices in the newspapers instead of putting the announcements on television. You can always contact your local city county officials to find out when they are being held. |
One of the biggest perks about a delinquent tax sale is the investor can come out on top, no matter how things go. When they purchase a lien, they become the new owner of that property. They can do whatever they want to do with it. This is great opportunity for those who want to purchase a home and don't have a lot of money to do so. The downside is that the original owner does have a certain amount of time by law to pay off what they owe, plus and other fees that have been added on for penalties and interest. That period of time is referred to as a redemption period. If the original owner takes advantage of the redemption period, you get the money you paid and more back. You can make up to a twenty percent or more return on your initial investment. Even though you may have had your heart set on getting a nice house, you now have more money to invest again into another property, and hope for a better outcome.
Just because a property is listed in a delinquent tax sale doesn't mean that it is a good opportunity for you. There are many other factors that come into play when you participate in this type of event. You need to learn about what is involved and required from both the investor and original owner. Learn what rights you and the original owner have. This may seem like a lot for you to do, but doing this in advance can prevent you from dealing with a lot of complications, frustrations, and issues later on.
Make sure you investigate all of the properties that are listed. Learn about their histories. Treat this situation as if you were purchasing a house through more traditional means. The more you know about the properties, the better you will be able to weed through the properties that don't offer you a good amount of investment. You can also prevent yourself from becoming the owner of a property you really don't like. Find out when the next delinquent tax sale is and start getting prepared to find the perfect place and make some money.
Make sure you research your options in a delinquent tax sale before you agree to any contracts. See how the experts here can help: http://www.civicsource.com.
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