Flipper/Rehabber · Berkeley Springs, WV · Member since 2017 · 164 posts · 103 votes
Has anyone had success purchasing a property during the redemption period after a tax lien sale? I have the list of properties that were auctioned at the tax lien sale and I am thinking about reaching out to them to see if they would be interested in selling. I understand I would need to factor in the unpaid taxes but is there anything else that I am missing? Would appreciate some insight from some of the seasoned tax lien folks.
@Sebastian E. Maryland is a state that has pre-foreclosure laws. It is along story and a case of bad facts make bad law. many sates copied the MD law. This law passed before the 2008 meltdown. I wonder how many people last their homes because RE investors weren't able to help them.
That said, unless there is a state law prohibiting it, you simply buy the property from the owner and the tax lien gets paid off at the time of the sale.
Potential risk, the tax foreclosure could be competed while you are under contract. Not only would you be out of a deal, potentially a seller could come after you for any delay that gave the tax foreclosure to be completed.
These laws would prohibit me from reaching out to sellers?
Some states have laws that provide detailed instructions and prohibitions regarding soliciting homeowners who are in foreclosure and similar situations.
@Sebastian E. Maryland is a state that has pre-foreclosure laws. It is along story and a case of bad facts make bad law. many sates copied the MD law. This law passed before the 2008 meltdown. I wonder how many people last their homes because RE investors weren't able to help them.
That said, unless there is a state law prohibiting it, you simply buy the property from the owner and the tax lien gets paid off at the time of the sale.
Potential risk, the tax foreclosure could be competed while you are under contract. Not only would you be out of a deal, potentially a seller could come after you for any delay that gave the tax foreclosure to be completed.
Has anyone had success purchasing a property during the redemption period after a tax
Not sure about WV, but what was sold: the deed (are you a tax deed state) or a lien (are you a tax lien state.) Big difference.
If you are a tax lien state, then the previous property owner still owns the property and all the liens that come with it....tax liens and penalties, mortgage liens, IRS liens, and any other attached to the property.
You can certainly go after these. Some will probably sell. Some people just play the game of waiting until the last possible day to come up with the money, so won't be interested in selling. All kinds of other reasons as well.
I'd say go after them, before the tax sale, don't wait. Why wait?