| If you want to buy property by paying back owed | | | | mortgage company would have come in and paid the |
| taxes, there are a couple of ways to go about it. | | | | taxes off to keep it from being lost. |
| First, if you want to buy property by paying back | | | | These owners have frequently decide to just walk |
| owed taxes, and only back owed taxes, you can do | | | | away from their tax problem. If you approach them at |
| this either by buying from a first-come, first-served | | | | the right time, you can offer to pay them a few |
| county that sells deeds for the exact amount of taxes | | | | hundred dollars for their deed (since they're letting it go |
| owed, or by bidding at tax sale, where the opening bid | | | | anyway), just to get the problem out of their hands. |
| is generally the amount of taxes owed. Your chances | | | | Then, you can pay off the taxes yourself and keep |
| of being the successful (only) bidder on one of these | | | | the property, or before you've even put the deed into |
| properties is slim to none. | | | | your own name, find a new buyer and let them deal |
| What's more likely to happen is that you will find many | | | | with the tax issue - and simply walk away with your |
| other bidders present, and whatever property you're | | | | profit then. |
| looking at will receive many other bids, especially if it's | | | | Another way to profit from tax sale is to reconnect |
| a property that is in decent shape. Most of these | | | | the owners who walked away from the properties |
| homes will be bid up to near retail value, and then their | | | | with their overages. Usually, once the house is |
| owners will pay off the delinquent taxes during the | | | | permanently lost, the owner is entitled to whatever the |
| redemption period anyway. | | | | excess bid was (over the amount they owed in |
| The other, much more successful way to buy | | | | taxes). Sadly, they frequently don't know about the |
| property by paying back owed taxes is to get it | | | | money and leave it behind to be lost to the |
| outside the auction. Towards the end of the | | | | government. |
| redemption period, you can check the tax sale record | | | | If you can reconnect these owners with their funds, |
| and see who hasn't redeemed their property (and thus, | | | | you can legally collect a 30-50% fee contingent upon |
| is about to lose it permanently). These owners are the | | | | the release of the funds. It's a legal loophole few know |
| best prospects in the whole tax sale process. They | | | | about, and with the current rate of foreclosures, there's |
| are motivated, and their properties, at that point, are | | | | a lot of money to be made as a money finder in these |
| almost certainly free and clear. Otherwise, the | | | | cases. |