Georgia Tax Deed Sale
I have attended several sales in my county and bid on a few properties but have not won one yet. I will be back on Jan 2 to try again. Most of the auctions I attended the bidding seldom went for more than a few hundred dollars more that what was owed on the taxes. In only one case did I see the bidding to over 10K and it went to 35K for a house that was worth 75K.
For those of you that have the experience with the bidding process please help with this example: the taxes owed are $700 and the value of the house is $100,000, remaining loan amount is $90,000. The bidding starts at $700 and goes from there. Why wouldn't someone that wants to make 20% on their money bid $50,000? The homeowner now owes a mortgage of 90K plus a tax bill of 50K (total of 140K) for a house that is only worth 100K. Most homeowners would not or could not pay and would be forced to let the house go. If the mortage company decides to pay it then you get your 20% of the 50K, a $10,000 payday. If they don't pay it and the homeowner lets it go and you foreclose on it after the 12 month redemption period you get a house for 50K that is worth 100K.
It seems like a dirty way to take a house from someone but if they are not paying the taxes they probably not paying the mortgage either and may be losing it either way. Just looking for your thoughts on this. Thanks!