Information on tax liens.

3 Replies

Who buys tax lien properties for rental income? Our landlord has not paid her property taxes, and the house is going to auction in February 2019. We have a lease and we don't or can't move. Any help would be much appreciated.

Thank you, Karen Montez

It varies by state.  I'm assuming you're in California since you posted this in the Sacramento real estate forum.  California counties don't sell tax liens.  In California, properties get sold at tax deed auctions.  However, the property taxes have to not be paid for five consecutive years before the properties can be auctioned.  So if this is the first year (or anything less than five years), you don't have anything to worry about (yet). 

If the property taxes haven't been paid for five (or more) years, it's possible that the property could go to auction and you could end up with a new landlord.  It doesn't necessarily mean you'd have to move though.  Many investors buy properties to keep them as rentals. 

The auction list for Sacramento's February 2019 auction hasn't even been posted yet, so I'm not sure how you know it's scheduled for auction. But you can go here to check for it when it does get posted: http://www.finance.saccounty.net/Tax/Pages/TaxSale.aspx

Even if the property does get scheduled for auction, properties get redeemed (pulled off the auction list) all the time before the auction takes place.  They can be redeemed right up until the last business day before the auction.  Happens all the time.

@Karen Montez many investors do that. If you are thinking of buying yourself, that could be a good strategy if you have funding. You know the exact condition of the house and can possibly bid higher than an investor but still less than market price. 

If you are just hoping another investors buys it so you can keep renting there. That is a real possibility. It almost assuredly will be bought by an investor not a potential homeowner.

If you have a lease, you should be good regardless of who buys. Owner will take ownership subject to your existing lease. Renew that thing! lol

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