Johnson City, NY · Member since 2014 · 2 posts · 0 votes
I am interested in purchasing a property that will be coming up for sale in a tax lien auction. I have never purchased a property like this and I'm concerned about what other costs that are attached to the purchase. Would I be responsible for any other liens or judgements that may be held against the property? What are some other possible costs that I could incur?
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
12y
The rules for tax liens are very state and sometimes even county specific. I suggest you look up the info on your local county's website.
In general if you buy a tax lien you have no ownership rights in the property only a lien against the property. If you foreclose you wipe out all other liens and judgements against the property other than other county or municipal liens.
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
12y
The rules for tax liens are very state and sometimes even county specific. I suggest you look up the info on your local county's website.
In general if you buy a tax lien you have no ownership rights in the property only a lien against the property. If you foreclose you wipe out all other liens and judgements against the property other than other county or municipal liens.
Investor · Hattiesburg, MS · Member since 2014 · 280 posts · 98 votes
12y
Jodie,
@Ned Carey has you on the right track, for detailed info. go to the county and ask the tax collector the rules, usually at the chancery court there are computers to research liens, etc. In my experience usually well over 95% are paid back before you can take title, so you will most likely get tax money and interest back. But, you never know until you try. Hope it goes well!
San Luis Obispo, CA · Member since 2012 · 94 posts · 23 votes
12y
Additionally, to foreclose on the property the process varies from state to state but generally there is a very specific process. This normally includes getting a certified title abstract and then notifying all interested parties of your intent to foreclose so they also can try to pay the taxes and interest prior to having their liens extinguished.
I do work with many investors that are very successful at this type of investing. At a minimum they get their interest paid and best case they get a house for a very good deal.