Just had some questions for the tax lien experts that have been around the block. I have never been to a tax lien sale and am planning on going to one in Indiana in a few weeks. I have never been to a tax lien auction so I have no idea what to expect. It's in a smaller county so I'm hoping that the competition will be less. I have a question about setting bids at a tax lien auction and what to expect at the auction. I've narrowed my list of properties I am interested in down to about 100 and am starting to take a closer look at each of them. Can someone give me a rough idea of what to expect in the following circumstances and how much competition there will be for these items?
1). A 160 acre parcel of land comes up for auction with back taxes of 10k. The property is assessed at a value of 200k.
2). A beautiful home assessed at 250k that owes 4k worth of back taxes
3). A home in a medium income part of town that is safe. Assessed at 58k and owes 3k worth of taxes.
Make sure you don't bid too much for any one property. In SC the states that the property owner can't pay more in I tete st than they owe in back taxes. So if you bid too much your effective interest rate starts to go down.
Also keep in mind that if you want to sell a property you get retail, you will need to do Quiet Title. This may cost between $1500 and $4500. I would pay less than half of FMV.
The less the better!
I don't know much about Tax sales Hobart, but I buy quite a bit of properties from sellers who bought the house at a tax sale. It is usually really messy, as they didn't know they had to get a quiet title (Which costs about 2K and take 60-90 days) Also, make sure you do your homework on what interest rate you get if the owner redeems the taxes (I heard they just lowered it), and there is a redemption period before you would get the property (I think 1 year), and you would need to do some legal work on that end as well. I think it's a little tedious, but a great strategy if if you get the right property. Thanks.
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