How do I Buy Property in Missouri With a Tax Lien?
When a real estate owner in Missouri fails to pay the property taxes, the county may offer the property at auction. Two methods of purchasing properties with tax liens are offered by Missouri counties. The counties may sell the property at a tax deed auction or auction a tax lien certificate for the property. Investors attempt to purchase property at a tax deed auction for a price lower than market price. When an investor purchases a tax lien certificate, the investor pays the property tax and receives interest on the payment. If the property owner does not redeem the property, ownership of the land may eventually go to the investor.
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Instructions
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Contact the tax collector in the Missouri county area of interest to find tax-delinquent properties. The tax lien and tax certificate auctions are usually held on the fourth Monday in August at the courthouse. However, the city of St. Louis holds its own tax deed auction and Jackson County holds two tax deed sales per year.
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Read the legal notice section of local newspapers in the area of interest. Notices about tax delinquent properties are published in Missouri newspapers prior to the auctions.
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Conduct a title search on the tax lien property to find any additional liens or encumbrances attached to the property. Contact the assessor's office in the Missouri county to obtain parcel maps.
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Visit the property and carefully note the condition of any structures. Determine any challenges to development such as a wet soil, large rocks or a steep slope. Find the legal access to the property and the property boundaries.
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Research similar sales in the area to formulate a competitive bid. Find the asking price of similar property in newspaper and online advertisements.
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Find the necessary funds to bid at the Missouri county auction. The minimum bid includes the back taxes, interest, penalties and cost of the sale. Research the type of payment required for the winning bidder.
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Make a competitive bid at the Missouri county tax deed auction. If a tax lien certificate is purchased, carefully follow the rules and regulations concerning the right of redemption by the owner. In Missouri, the owner must pay all back taxes and penalties to redeem the property.
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