Property Tax Sales Listings

8 Replies

Good Afternoon,

What is the benefit (if there is one) to using lists for people that are about to lose their home for not paying property taxes as a strategy for finding motivated sellers?

If you don't pay your property taxes, the taxing entity will put a lien on the property in the amount of the taxes owed.  If they are not payed, the taxing authority can foreclose on the property in the hope of getting what is owed to them.

One of the benefits is that you can often find houses that are free & clear but the owners (maybe heirs to an estate, etc.) didn't pay the property taxes - let's say it's $5,000 per year.  After 3 years, the taxing authority forecloses, and you have a property that only has a $15,000 lien on it.  These often go to auction where investors might be able to get the property for around what is owed or maybe more, but it can be a very good deal.

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“Don’t judge each day by the harvest you reap, but by the seeds you plant.” ~ Robert Louis Stevenson

can you approach the owner to solve the problem? By paying off their delinquent taxes that will take the property out of jeopardy.   Could you offer to trade the taxes for the property thru an escrow so the person is free to walk and take the property subject to the current loan? (Hopefully with a low balance) What would be the best way to get that all done?

Good idea. I'm still trying to locate the owner. I tried setting up with Chicago Title and escrow.  The lady I spoke to didn't seem anxious for my business.  She seemed suspicious and even said she wanted to make sure I would send the actual title and escrow business to them.  Huh.

I used Chicago title when I was an active broker.  I called her to set up for all the business I am working on.

Anybody have a title company  that is investor friendly?

I use Bob Dickinson at Greater Illinoise Title and he's been great.  Send me a private message and I'm happy to share his contact info.  

The list can be beneficial for finding motivated sellers. It's typically posted publicly on the county website under the taxing authority's page. Many states allow a bidder to receive a good rate of return on the tax bid if you decide to bid on a property at the tax auction and obtain ownership that way. It can be a win win for the investor.

@Damian Johnson - Have them do a quit claim deed to you and have it notarized after you have settled on an amount is an approach that may work. Of course you have to approach them before the tax sale and make the offer enough that they will accept it due to excess proceeds and what they are entitled to after the sale.  If they accept your offer you will need to have the deed recorded and then you can get your quiet title done and then get your title insurance.  You can then get the full price for your property.  Make sure to pay the delinquent taxes and include that in your total amount that you have into the property .

I've been following the thread, and I read the "Processes" for Missouri tax lien sales. I'm a little confused, are you really only using this to find free-and-clear properties? Seems a bit of a headache if you get one that has a mortgage owed on it. Do you just assume the mortgage at that point, along with the tax lien?

@Tyson Hosey I've had the same question about the properties that have mortgages or other liens on top of the tax lien. How would the bidder know about other liens on the property? 

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