How to Obtain Property for Back Taxes
You can find properties throughout the United States being sold because of outstanding taxes. When property owners fail to pay taxes, counties usually conduct tax lien or tax certificate auctions to sell the tax debt. If the owners keep avoiding their taxes, the tax lien holders can foreclose on the properties. Some counties sell properties directly instead of holding tax lien auctions. Properties maintain might find property that is well maintained or in horrible condition.
- Difficulty:
- Moderately Easy
Instructions
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1
Select an area where you want to obtain properties. You can focus on a specific state, such as California, or county, such as Los Angeles County. Each county maintains its own procedures about bidding and purchasing property that you must understand.
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Determine the type of property that you prefer, such as residential or commercial. For instance, local zoning restrictions will likely prevent you from opening a business in a residential area. You can purchase developed or undeveloped property.
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3
Review notices posted by counties about upcoming auctions, which you can find on the county's website or in a local newspaper. You also can register with an online database like taxliens.com to research several properties.
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Select properties that you can afford. Remember that you will compete with other parties and might pay more than the auction minimum. You should analyze the property's current condition, such as whether it is vacant or occupied. Evaluate the cost of making repairs externally and internally.
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Place a winning bid. Some auctions accept online bids, which allows you to purchase property without being physically present. Make sure that you complete all pre-registration requirements.
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Tips & Warnings
Most auctions require immediate payment so you must secure financing or risk losing the property. Confirm whether you must pay using a certified check or a credit card. Be prepared to pay more than the winning bid, as counties add fees that usually total less than three percent.
Research the property's title history. You should assess whether there are other liens attached, such as a mechanic's lien. Consult with a local attorney to consider your legal exposure.
