| If you're interested in buying tax property, you're right | | | | First, by making it all the way through tax sale, you can |
| to try to avoid the tax sale auction. There's too much | | | | be pretty sure the property is free and clear, or |
| competition, you can't inspect property beforehand, and | | | | another lienholder or mortgage holder would have paid |
| you have to come up with the full amount and pay | | | | off. Second, your competition doesn't act during this |
| right on the spot. Worst of all, owners almost always | | | | time. So when you approach the owners, they're not |
| pay off. Here's how to buy a house before tax auction | | | | bombarded with calls anymore. |
| - and an even better way to get tax property. | | | | Which is too bad for them, because this is the point at |
| First, you'll need to get records of who is tax delinquent | | | | which they're desperate to sell (third advantage for |
| from your county tax office, because the only way to | | | | you). If they don't take care of the tax issue by the |
| buy a house before tax auction is directly from the | | | | redemption period's end, they'll lose everything. So now |
| delinquent owner. The problem with this is in contacting | | | | is "do or die" time for them, and they know it. |
| the owner, once you've gotten their name. Often these | | | | At this point in the game, you can pick up deeds to |
| owners are still trying to find a way to pay the taxes | | | | properties for as little as $200. You'll find some owners |
| and will avoid dealing with investors. Also, at this point, | | | | just don't care and want the deed out of their name |
| your competition will be out trying to do the same thing | | | | as soon as possible. These are the owners you can |
| you are. | | | | "pay for their time" in signing the documents and walk |
| But if you are successful in locating an owner who | | | | away with what is essentially a free deed. |
| agrees to sell, you will have to record the deed in your | | | | Then, you just pay the taxes off before the |
| name and then pay the back taxes and penalties off | | | | redemption period ends, and record the deed in your |
| yourself, on top of whatever price you and the seller | | | | name. Or, if you don't have the cash for the taxes, |
| agreed to. To buy a house before tax auction is | | | | quickly flip to another investor and let him take care of |
| preferable to bidding at auction, but there's a much | | | | the tax burden. Either way, you'll have a profit of |
| better way to get this property - after the tax sale. | | | | thousands on your $200 investment, and it's tough to |
| It's still legal to purchase property during the redemption | | | | beat that. |
| period, and this timing offers a couple of advantages. | | | | |