How to Buy Tax Lien Properties in Washington
When the property tax for land in Washington is three years past due, the county may sell the land at auction. Investors attempt to purchase tax lien property at auction for a price lower than market price. The owner of the property stops the sale if the full tax bill is paid by the close of business the day prior to the auction. Otherwise, the land is sold "as is" to the highest bidder at the auction. The minimum bid covers the tax, penalties, interest and foreclosure costs.
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Instructions
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Contact the Washington county in your area of interest. Note the auction schedule and determine if the investor or a representative must bid in person.
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Read the legal notice section of the local newspaper to find certificate of delinquency lists. When property taxes are not paid, the county files a certificate of delinquency; it is published for several weeks in the newspaper. The lists give an advance notice of the properties in tax lien auctions.
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Obtain a list of the tax auction properties. Often the county posts the information on a website. The list may change often, as owners pay their tax bills prior to the auction.
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Visit the county assessor's office to obtain accurate parcel maps. Find the legal access to the property and search for any easements. Transmission line easements, for example, will appear on the parcel maps, and development restrictions may exist.
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Find the permitted use for the property. Land declared wetlands or open space might have development restrictions.
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Visit the land in person. Note any challenges with the property such as a steep slope, dense vegetation, wet soil or large rocks. Examine the property for hazardous or environmental issues. Contact the local health department or the state EPA.
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Research the property title and identify any liens or encumbrances connected to the property. Purchase of the property at the tax lien auction usually eliminates any mortgages, contracts and judgments. However, Local Improvement Assessments and Internal Revenue Service liens may stay with the property.
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Find the type of payment required by a successful bidder at the tax auction. Many counties require an immediate payment in cash, cashier's check or money order for the full purchase price.
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Research sales of nearby or similar property, and bid competitively at the auction.
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Tips & Warnings
The owner loses the right to redeem the property after the auction, unless the owner is a minor or declared legally incompetent.
References
- Photo Credit Countryside harvest land image by Rose from Fotolia.com
