Seven Tips on Buying at Tax Foreclosure Sales

Several things should be considered before you placeinformation out about the property and its history as
a bid at tax foreclosure sales. You should know asyou possibly can.
much as possible about the circumstances surroundingTip 4. You need to know whether the property has
the foreclosed property.been vacated or not. If the occupants are still living
Tips and advicethere, it is often difficult, costly, and time-consuming
Tip 1. There are two types of foreclosed propertyto get them to vacate the premises.
tax sales: a tax lien sale and a tax deed sale. It isTip 5. Make a site visit to the tax foreclosure
crucial you know which type of foreclosure propertyproperty you are interested in. You want to know as
you are bidding on as they are very different frommuch about the condition of the property as possible.
each other.If you are able to get a look at the interior of the
At tax lien sales, the county government responsibleproperty, which is not always possible, you might
for collecting taxes on the property sells the tax lienwant to hire an Inspector to go with you and assess
itself that the homebuyer hasn?t paid. The winningthe state of the property.
bidder is actually paying the tax debt on theTip 6. If you are the winning bidder, you must pay in
property. The homebuyer must then pay the biddercash, or with a cashier's check, in full, ordinarily by the
back, at a higher rate of interest than normallyend of that business day. In some instances, you
allowed, or face the final prospect of foreclosuremight be able to qualify for a loan at the auction site
from the person who paid the tax debt.if there are lending institutions present to assist you.
At a tax deed sale, the county government is sellingTip 7. Homebuyers can pay the taxes anytime up to
the entire property and rights to possession go tothe day before the auction, in most cases. If the
the winning bidder.taxes are paid, you will no longer be able to bid on
Tip 2. Many places are available to search forthe tax foreclosure, no matter how much research
information on tax foreclosure sales that haveyou may have invested in it.
attracted your interest. Web sites can offerKnow the laws governing a sale
invaluable assistance in finding out details about theYou should have a good working knowledge of the
foreclosure property. Foreclosed properties are madelaws, rules, and regulations governing tax foreclosure
a part of the public record; much information issales before you purchase. The procedures can vary
available if you know where to look.from state to state, and county to county. Once you
Tip 3. You can visit with the County Clerk?s office infind a property you are interested in, stay on top of
the county where the property is located. They keepwhat is going on with it, as changes could alter your
a record book called, "Registry of Impendingmind as to its purchase.
Foreclosure Sales". Again, you want to find as much