foreclosures / houses on delinquent taxes (vents, auctions, foreclosure, investment)

[2beamissourian]

How does someone find them?


I was flipping through the tv channels and there is a man selling something that shows you how to buy these homes for delinquent tax only. I find this hard to believe since most homes have a mortgage .... guess I am wondering if this. How can you get a home on delinquent tax and the bank just looses its money?

Any info?

Thanks

[NYtoVT]

In most states, real estate tax liens have first position even over mortgages. That being said, lenders will not let a property go for just the amount of the deliquent taxes. When auction time comes around you can bet that the lender will be there bidding up the price to at least cover the amount they are owed.

[mrsgenealogy]

Originally Posted by 2beamissourian

How does someone find them?

I was flipping through the tv channels and there is a man selling something that shows you how to buy these homes for delinquent tax only. I find this hard to believe since most homes have a mortgage .... guess I am wondering if this. How can you get a home on delinquent tax and the bank just looses its money?

Any info?

Thanks

Originally Posted by NYtoVT

In most states, real estate tax liens have first position even over mortgages. That being said, lenders will not let a property go for just the amount of the deliquent taxes. When auction time comes around you can bet that the lender will be there bidding up the price to at least cover the amount they are owed.

Hey, 2b! Fancy seeing you here! Hello, NYtoVT!
It's been awhile since I looked into this but I can tell you first of all that NYtoVT is right. If you are talking about Tax Lein Deeds, properties are offered at auctions and there is often a lot of competition...but not always...on properties. Trust me...there are A LOT of these properties!

Tax Lien Certificates are different. Basically, you are only paying delinquent taxes on a property, earning interest on your investment...and potentially eventually "inheriting" a property if the owner continues to default beyond that state's deadline.

Here's a website that gives a verrry simple explanation:
Tax Liens - Tax Lien Certificates

Here's another site that gives a more detailed explanation. I warn you that they seem to be also dishing out a little fear, perhaps suggesting that you need to hire them to help. Here's the link: Tax Lien Sales

There are two different ways of getting a property that was lost through delinquent taxes. Some states use tax lien certificates and others use tax deeds. The guy whose link I am about to give gave new info that there might be both in MO so I don't know. It's been a long time since I first looked into this.

Tax Lien Certificates Directory: Featuring States that allow Investing in Tax Lien Auctions By Mail, Online and through Public Foreclosure Sales
Even though he is selling something, he is selling the idea, so you may be able to learn something from him.

I am not an expert on this and am, in fact, still a wanna-be. I just found my info on this topic the other day and if you want to chat in private, I'll be happy to go over it with you and perhaps, find a way to point you in the right direction.

Knowing that you just got home from your trip, I want to add that there's no rush. Just write if and when you want.

MrsG

[angelmb76]

I make it a habit to visit the taxation and revenue department in my city online I go to public events and there it is. The auctions are all over new mexico I keep watch when auctions are being held in my city which is twice a year. The bidding starts as low as $150. My old nieghbor from Gallup New Mexico Danny has acquired quite a few properties this way. I was told there is one catch. The person who was delinquent and lost the home has two years to reclaim the house. He or she has to compensate what you put into the house plus interest. I figure who can come back from loosing a home within to years and get anyone to give him a loan to pay the amount I would put into a house plus interest. I also found out recently I can find lists of forclosed and tax delinquent homes at my local county seat they dont give the exact address just a block and lot number but there are suppossedly maps they provide so you can visit the properties. My friend vicky had a tax delinquent home just down the block from her. She kept passing by the sign wondering if it was the kind of homes I kept talking to her about. By the time she checked it out the home went to a lucky guy for eight hundred dollars she regrets not checking into it sooner.

[chet everett]

...did you ever go to the beach and see some guy with a metal detector looking for jewelery and coins? I have asked those guys how much they find, generally a few have said "more than I spent on the detector", but most say "not enough to pay for sunscreen".

GENERALLY the same can be said for those who ROUTINELY hang out at the tax sales and foreclosure auctions. VERY FEW people bring diamond rings to the beach. Even fewer lose them. Of those that do lose them only a TINY percentage would not try VERY HARD to find / recover their VALUABLE ring...

The properties that can be bought for only a tiny amount of money almost certainly NEED a tremendous amount of work.

Right now I know there are slightly more "lost coins" on the beach, that you can find and make a little "pocket change" just by digging a bit, but even NOW with HUGE increases in tax sales and foreclosures it is VERY hard to do more than make enough to pay "for sunscreen" as the market for "broken down / beat up pieces of what once might have be jewels" is pretty much swamped.

Still, if you like walking on the beach, there are worse things to spend your time on...

Originally Posted by angelmb76

I make it a habit to visit the taxation and revenue department in my city online I go to public events and there it is. The auctions are all over new mexico I keep watch when auctions are being held in my city which is twice a year. The bidding starts as low as $150. My old nieghbor from Gallup New Mexico Danny has acquired quite a few properties this way. I was told there is one catch. The person who was delinquent and lost the home has two years to reclaim the house. He or she has to compensate what you put into the house plus interest. I figure who can come back from loosing a home within to years and get anyone to give him a loan to pay the amount I would put into a house plus interest. I also found out recently I can find lists of forclosed and tax delinquent homes at my local county seat they dont give the exact address just a block and lot number but there are suppossedly maps they provide so you can visit the properties. My friend vicky had a tax delinquent home just down the block from her. She kept passing by the sign wondering if it was the kind of homes I kept talking to her about. By the time she checked it out the home went to a lucky guy for eight hundred dollars she regrets not checking into it sooner.

[Kdaysmom]

I'm renting a home that has delinquent taxes owed since 2007. Am I in the position to purchase the home for the past due taxes?

[Bill Keegan]

Originally Posted by Kdaysmom

I'm renting a home that has delinquent taxes owed since 2007. Am I in the position to purchase the home for the past due taxes?

The short answer is NO.

There is a process. When the taxes go unpaid, the municipality (usually the town) auctions that tax debt, selling what is usually called a tax certificate. The purchaser of that tax certificate gets the tax payment plus interest when the homeowner finally pays the tax bill. The person who owns that certificate has the right to initiate foreclosure proceedings after a certain period of time. (That time may differ from state to state or even municipality to municipality, so call your local tax board if you want to find more detail.) If the process gets to the point of an auction being held for the property, then you may have a chance to compete with other bidders to purchase the house.

[dsjj251]

you do not have to go to an auction to purchase the homes (personal experience talking)

Most states have a property tax web site that will tell you how to do it.

on a smaller level, your county or even city my have a list of tax delinquent properties that you may purchases.

1. find the property you want and find the parcel number for it

2. send off what ever paper work your city,county, or state requires

3. after they have mailed (or emailed) you the amount of taxes that are owed(amount of taxes on the website may,and most likely will not be close to what is actually owed), send them a check with what ever paper work that is still needed.

4. the city,county, or state will send you a tax certificate if all your information was correct

5a. If the home was not already at the point of "no return" (3-5 years of tax delinquency) then you have to pay the taxes until it is, or the current owner can, but the amount you paid for the taxes are still owed to you.

5b. If the owner has not repaid you in 3 to 5 years( the amount of time allotted by the states i have researched) the county, city, or state sends you the DEED.

there is no auction.

the auction is only held for land that in delinquent and no one is paying taxes on it.

[Bill Keegan]

Originally Posted by dsjj251

you do not have to go to an auction to purchase the homes (personal experience talking)

Most states have a property tax web site that will tell you how to do it.

on a smaller level, your county or even city my have a list of tax delinquent properties that you may purchases.

1. find the property you want and find the parcel number for it

2. send off what ever paper work your city,county, or state requires

3. after they have mailed (or emailed) you the amount of taxes that are owed(amount of taxes on the website may,and most likely will not be close to what is actually owed), send them a check with what ever paper work that is still needed.

4. the city,county, or state will send you a tax certificate if all your information was correct

5a. If the home was not already at the point of "no return" (3-5 years of tax delinquency) then you have to pay the taxes until it is, or the current owner can, but the amount you paid for the taxes are still owed to you.

5b. If the owner has not repaid you in 3 to 5 years( the amount of time allotted by the states i have researched) the county, city, or state sends you the DEED.

there is no auction.

the auction is only held for land that in delinquent and no one is paying taxes on it.

You should clarify the location about which you're talking. It doesn't work the way you describe in NJ. In NJ, one never becomes the owner of the property simply by buying a tax certificate. Id be interested to know which states allow such a thing.

[dsjj251]

Originally Posted by Bill Keegan

You should clarify the location about which you're talking. It doesn't work the way you describe in NJ. In NJ, one never becomes the owner of the property simply by buying a tax certificate. Id be interested to know which states allow such a thing.

I am talking about the South East, specifically Alabama, Mississippi and Florida.

i didnt know New Jersey had a different system.However, I would encourage you to actually call your state,county,or city as when i first started the process, i researched and found websites for the states above that said I was only allowed to purchase land/property at auction, but when i called the county offices and the State Property Tax Division, I was told otherwise.