New Tax Sale/ Tax Deed state home investing

7 Replies

Hi guys, 26 year old newlywed from PA (tax deed state) and very soon to become a tax sale investor.

My husband and I are looking  at some properties but are new to this territory and real estate investing in general.

Firstly, any advice you have in general on tax deed sales would be great. Secondly, can anyone clarify the following questions for us? (listed below)

1. If there is an existing mortgage on the house, who is responsible for it?

2. What does the potential of "paying off bank" mean in respect to an existing mortgage on the house?

3. How much should we expect to pay in house taxes each year?

4. Any advice in general moving forward with this? Warnings, cautions, etc.?

Thanks guys!!!

Jordan,

I am a newbie like yourself, but I can help you with your questions.

1). The mortgage would be extinguished with the sale of the tax deed and then the quiet title action

2). Not sure

3). You can usually use the Parcel Number to look up the amount of taxes they pay every year through the county treasurer or assessors website.

4). There's a lot of good material out there. Books - Zero Risk Real Estate by Chip Cummings is great. He has great free videos as well for how to do due diligence on these properties here: www.zeroriskrealestate.com/bonus/

Good luck!!

You need PA Specific info, not what works in other states.

1)Read your state statutes, that's where the laws are

2) Sit down with a Local RE attorney, familiar with tax sales.

By the w, "paying off the bank" means "paying off the bank", in full, the total amount they are owed.

Originally posted by @Hobart King :
...

1). The mortgage would be extinguished with the sale of the tax deed and then the quiet title action

...

 In PA, the quoted excerpt would be wrong and bad advice to follow, since the tax sale is conducted "subject to existing liens of record" - so the mortgage would remain in place, and the buyer at PA Tax Claim Bureau sale would end up having to pay to get clear title. 

@David Krulac might care to comment ...

Welcome to BP.   

4) I think I would attend at least 1 auction to get a feel for how the auctions work.   You want to stay away from getting caught up with auction fever.   Do you homework on the county web sites and ensure you are not bidding on useless land such as roads, non buildable lots, etc.   I think Joanne Musa is from PA.  She is known as the tax lien lady and I would recommend checking out her site or youtube videos.