Real Estate Investor · Layton, UT · Member since 2008 · 9 posts · 0 votes
Can someone give me some insight on this? I have researched on the web but not fully understanding how you can become the owner through this process. Sites are making it seem like you can purchase these homes for pennies on the dollar because the government is owed taxes on them. The mortgage must still exist. I contacted a rep at the auditors office in the state I'm living and she let me know when the next auction was taking place. She said none of the homes will even make it to the auction because all taxes will be paid and this is actually there to protect them. Please give more info.
Real Estate Investor · Member since 2008 · 16 posts · 0 votes
19y
Where did you see this at? I've never found any sites about tax liens yet. And I don't understand how this protects them. I've only gotten info form local courthouses so I'd love the hear from you. From my brief understanding about tax liens is that you go to the courthouse and put bids on the taxes and if owner doesn't pay you back taxes plus interest then you can place a tax lien on the property. In illi it owner has 3 years to pay back. but i don't know about govt propeties with tax liens on them.
Hey Gun- Typically on a Tax Lien sale, the county or city or state puts a lien on the home because of unpaid taxes. The homeowner is then notified that the taxes must be paid in full or it will go to auction. Usually the mortgage holder is already aware of this and is on top of it because a tax lien typically takes number one priority, even over the mortgage holder. The bank doesn't want to lose the home for pennies on the dollar so they pay the taxes and then play hardball with the homeowner. If an investor happens to snag one these properties, they usually have to wait a certain amount of time before actually taking ownership of the property. Here in Michigan, a homeowner has a 6 month redemption period in a foreclosure process ( and I think it is one year for a tax lien sale). You get paid a heavy interest rate by the homeowner if they pay you back before losing the home.
Wholesaler · Amarillo, TX · Member since 2008 · 1k+ posts · 659 votes
19y
Each state has different laws around redemption periods, interest rates, and possession. Some states are tax lien states where you purchase the lien and can foreclose after a certain period of time. Some states are tax deed states where you actually are purchasing the title and possession to the property, but there will be a redemption period where the homeowner can buy it back for a percentage based fee.
You would need to research your state's property code in reference to what exactly is done in your state.
Hello I'm interested in tax deed auctions (California). Does anyone know of a hard money lender that will allow me to bid online with their money? It seems to me that the hard money lenders base much of their qualifications (most home owners). The title will likely not be marketable for about a year. I would like some direction as to finding hard money lenders that are more lenient towards investors with speculative opportunities. Any ideas? Thanks in advance.
Are you saying that you bid on the tax lien, if you win , they property owner must come to you and pay you the tax owed amount to get the lein released?
Real Estate Investor · London · Member since 2008 · 3k+ posts · 74 votes
19y
I doubt you will ever find a HML who will do what you want.
1. The lien might not be worth the paper it is written on.
2. You can not easily determine when the lien will be paid off if the lien has value.
3. If the lien turns into a foreclosure some states prevent the lien holder from having priority. They force a tax deed auction. In other states the lien holder can just foreclose assuming you can fund the cost to force a foreclosure.
Liens are tiny relatively speaking. Hence another reason why a HML would not be interested. You might get a signature loan.
4. If it was easy to bid online and earn a high return the HML would do so directly. They are investors with cash so they do not have to lend to others to make money.
John Corey
Originally posted by "f81134":
Hello I'm interested in tax deed auctions (California). Does anyone know of a hard money lender that will allow me to bid online with their money? It seems to me that the hard money lenders base much of their qualifications (most home owners). The title will likely not be marketable for about a year. I would like some direction as to finding hard money lenders that are more lenient towards investors with speculative opportunities. Any ideas? Thanks in advance.
Also something to consider is that when buying liens you need to make sure that the property is something the owner will want to pay off. Some of them are little triangles of land that someone accidentally bought, stopped paying taxes on them because they are worthless and voila a tax lien/deed sale. Also a decent inspection is important because if are so fortunate to foreclose on the property be sure that its something that you want and not to go around blindly fronting cash for liens because you only get your money back when its paid off.
Investor · UT · Member since 2019 · 11 posts · 0 votes
5y
BP Tax Lien Gurus. I am in the middle of a Tax Lien Auction right now. I have 2 weeks to learn about them and try to purchase the tax lien on my neighbor's property. Are there any resources you would recommend? The property is in Arizona so there is 3 year redemption period. Also, I am wondering about where the bids usually end up relative to the amount owed and the property value. Thank you!