Tax Sale in GA
Any experienced BP users do tax sales in GA or a state that has similar process that could answer some questions for me?
Am interested in buying tax liens at auctions but would like to clear up some things.
Do other liens stay with the property?
How long is redemption period (I think it's one year?)
How do I properly bid at the auction and how high should I go?
If homeowner decides to pay the lien after I bought it, can I charge interest and if so how much?
What is the ratio of tax liens being paid off by the homeowner vs. being able to redeem the property?
I'm sure I have other questions, but if anyone can help with those, that would be great.
Thanks,
Daniel
Most Popular Reply
Do other liens stay with the property? Yes, federal liens for example. Most don't.
How long is redemption period (I think it's one year?) Yes, plus you need to file barment afterwards so that period (2 months) you might also consider redeemable.
How do I properly bid at the auction and how high should I go? You should not bid because you're no where near ready. Do go, learn, network. Do keep learning.
If homeowner decides to pay the lien after I bought it, can I charge interest and if so how much? Keep researching. Check your particular state/county/municipality where you plan to purchase. They'll post rules. Read the GA statutes as well.
What is the ratio of tax liens being paid off by the homeowner vs. being able to redeem the property? Some liens are worthless -- the underlying property has a tax lien that FAR exceeds any value of the property. Those don't get redeemed and hopefully you don't buy any of these. Some liens are almost certainly going to be purchased - a $10k lien on a $100k property with $80k mortgage. Mortgage company will pay to keep their lien superior and get the property back. These are extremes. It gets more difficult in between these two scenarios.