Owed taxes next to my Rental

7 Replies

I would love to get some feed back on tax certificates and tax deeds here in georgia ,Atlanta to be exact,Its an abandoned house next to my rental that I'm going to eventually get ,come to find out its owner is 8 years behind on taxes and says he dosent want it ,the bank FC on him but never took back title of the house ,so the owner or ex-owner is still being persued by the county for code violations and things relating to such,my question is if i purchase the tax deed will i immediately get the property ?

2nd question if I have to wait the redemption period is there any way to speed up the process up so I can start the rehab process?

According to the process you have to buy the deed, wait 12 months, and then foreclose on the owner.   I talked to tax title services and they can't even speed up the process.   The only way that I can think of to speed it up its to work with the owner to pay off the taxes then have him give you the deed.  Perhaps give him a little cash to walk away.  Best of luck.


@Marc Bazemore

If the property is in DeKalb county. owing tax for 8 years is a little bit unusual for me. It will usually be on tax auction after 1-2 years. If it has been that long & nobody wants it. BE CAREFUL.

@Joe Mclain  

Overall your advice sounds reasonable, I will caution you though if will buy direct from this owner, all the liens including the mortgage will come back at you. WATCH OUT

@Tom Yung

Thanks for the adivce.  I thought the Tax Sale would wipe out the mortgage? Is that not how it works in GA? 


@Joe Mclain

If you bought it at tax sale, mortgage will be wiped out.

If you bought it from owner(quit claim), it comes along.

I think what @Tom Yung means to say is, if you foreclose after the redemption period and barment period, then the mortgage and all other *inferior* liens are wiped out.  IRS liens are not inferior, for example.

Mortgage companies will often redeem and takeover the property via tax deed process.  Some mortgage companies just fail to pay the taxes on time and end up paying the redemption.

Most importantly, @Marc Bazemore as Tom mentioned, chances are this property is worth less than the taxes owed.  Hundreds of savvy investors have decided not to buy it over the last 6 years in a row.  It would have certainly come up for auction several times.  

agreed. find out what the back owed 8 years taxes amount is going to cost.  I can't imagine a good property going 8 years without someone jumping on it.  Also, by way of tax leins, are you taking the house as is?  Should you check with the building inspection / city hall to make sure there is nothing else bad....how about a title 5?  (if that's what it is its call for the water/septic)

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