Purchasing Tax Sale Properties
Beware from whom you buy tax deeds from.
Let me first preference this by saying, I know very little about the purchase and sell of tax sale properties.
We recently contracted a property to purchase from an owner who had not paid his property taxes this past year. I went to our tax collectors office and the most helpful lady explained to me what needed to be done for the owner to redeem, so, we could purchase the property. The taxes were purchased for the amount owed, by an investor and after contacting the investor she mentioned she sold the taxes to another individual. I contacted that individual who paid to the original investor the amount of taxes owed, plus a premium of $1,800.
So, now the lady at the tax collectors office said, the owner of the property is only responsible for the amount of taxes owed plus interest. The individual who paid the $2,500 ( $700+ in taxes, plus $1,800 premium) to the original investor, it seems to me that person will lose $1,800.
Also, that same day we found out about taxes were owed, we showed up at the house we are purchasing and the utilities have been turned on and someone had been cleaning the house. I wonder if the original investor who purchased the taxes told the one who paid the premium that she know owned a house for $2,500.
One more thing. I noticed on BP Marketplace the investor who originally purchased the taxes has another property for sale one street over.
Should we all make sure we are doing our due diligence?