Updated 9 months ago on . Most recent reply
Tax sale properties
I've heard that if you pay the back taxes on a home, you get that home. This sounds way too simplistic for something that involves the government. A few questions for those that have done it (especially in Lucas county Ohio)...
How does this really work?
How do you deal with the forclosure and what does it cost?
How do you deal with the owners, assuming they still live there?
Most Popular Reply
@Chris Fisher No that is not how it exactly works. Properties that are in tax default are sold at tax auctions. The rules vary tremendously by state.
Some states do the work of foreclosing ahead of time and then sell a tax deed at auction. Some states like Maryland where I am sell a tax lien at auction. Then the lien holder can foreclose if the owner does not pay. The bottom line is it is an auction and they have become very competitive.
It used to be you could buy a tax lien for a little above the tax amount due. Now bidders are bidding up to 100% of the assessed value. The way Maryland works, the interest rate is bid down to 1% at the same time. There is no way to make money unless that value of the property goes up.
In todays market this has become very risky and I expect quite a few people to lose their shirts when the market drops.
In Maryland a foreclosure will cost about $3,000. Occupants can be evicted easily but we spend a lot of time working with occupants to get them out on agreeable terms