real estate for taxes owed - Posted by chris q(AL)

Posted by Mike Oldfield on April 22, 1999 at 17:56:03:

In our area the county treasurer offers clear title to the buyer at these tax sale auctions. All other liens are wiped out. There pokicy is that they like to get the back taxes and they have the right to refuse offers below the taxes owed but they typically will take whatever they can get.

I have purchased a property assessed for 90K actual FMV was closer to $40K for $15112 at auction. I was the only bidder. Naturally if there is competition at the auction you cant get a good deal if the other person is an idiot bidding FMV.

Just in case I always bid (Never for the total back taxes always less) If you are the only bidder, its yours. If not, oh well. My mother always said, nothing ventured nothing gained.

Good Luck

Mike Oldfield

P.S. Call the county treasurer in your area. They will tell you there policy and explain what type of title they offer. Its simple and only takes a few minutes

real estate for taxes owed - Posted by chris q(AL)

Posted by chris q(AL) on April 22, 1999 at 03:20:07:

Our local newspaper had a 5-page notice from our Revenue Commisioner stating that the listed properties would be sold to highest bidder for the taxes owed. Does this actually happen!? Can I buy a prop. for the taxes owed on it? If so what happens to the underlying mortgages?

Re: real estate for taxes owed - Posted by Zeus(ID)

Posted by Zeus(ID) on April 24, 1999 at 01:25:04:

It varies from state to state. Here in Idaho the leans on the property are added to the back taxes in order to get the minimum starting bid. Sometimes it’s a great deal and sometimes no deal at all. Like Mike said call your local treasurer or better yet just stop there and ask them questions. Don’t be shy, they work for you!

Also find out how the tax seizures in your state work. It might be a potential bonanza for you if there are alot of properties each year up for auction. You can get to them before they go to auction because records are public. Of course you have to deal with the owner at that point and may have to pay a higher price but who knows till you find them. Here in Idaho, the treasurer seizes the title after 3 yrs of delinquent taxes, then they try for the next 2 yrs to bring you up to date by trying to notify you. If you are still delinquent after these 5 yrs then the property goes to auction. I’ll be going down to the courthouse sometime in the next week to find out who is 2-5 years behind. Good Luck and go to the auction just for the experience if nothing else.