Update on back taxes acquisition - Posted by Barbara (ME)

Posted by LIENMAN on May 31, 1999 at 01:57:10:

I`m glad to be of service. Should you have anymore questions concerning tax liens/sales/auctions in the future you may send me e-mail or I will look for your posts on this board.Good Luck!


Update on back taxes acquisition - Posted by Barbara (ME)

Posted by Barbara (ME) on May 30, 1999 at 10:08:02:

Per my message below I hoped to pay back taxes on summer camp next door to my cabin on a lake. I found out today that the most this would accomplish is a “thanks very much” from the town office. If taxes are unpaid after 3 years the house is foreclosed and put up for bid.
Barbara (ME)

Re: Update on back taxes acquisition - Posted by LIENMAN

Posted by LIENMAN on May 30, 1999 at 19:32:01:

Hi Barbara,

I have read your post below and this post, so I feel that I am up to speed on your question.
If the local taxing authority does not receive property taxes for “X” (in your case 3) years
the property will be auctioned off. Usually the minimum bid is the amount of the back taxes
owed. Other times it will be back taxes owed plus a penalty based upon a percentage decided
by your particular State statutes.

My advice to you is to contact the local authority and find out when the property is due to be
auctioned. Also, go into your State statutes and read everything pertaining to Property Taxes
and Enforcement of Non-payment. Typically (every State is different), even if the property is
sold at a tax sale/auction, the original owner(s) of the property will still be able to redeem
their property by paying the back taxes within a certain alloted amount of time after the
tax sale/auction. This period is known as the “redemption period” in most States. So, even
though you may hold the winning bid on a property at the sale/auction, the original owner
can come in within the redemption period and redeem the county/state lien against his

However, should the redemption period pass and the original owner(s) not redeem, you
can then begin the woderful process of obtaining a Deed and Title to said property. Again,
every State has it`s own laws and statutes that will apply, but basically you would receive
a deed (Treasurers Deed, Limited Warranty Deed, etc.) and file a “Quiet Title Action” in the
court of the properties jurisdiction. This process usually takes up to one year, but the results
will be a “free and clear” title and a deed recorded under your name (or Trust Name, whichever
you prefer).

There are some states like Texas that offer a Sheriff`s Deed at the tax sale/auction to the highest
bidder. This deed is already “free and clear” and only needs to be re-recorded under the new
owners name.

In any case Barbara, you have entered into a relatively unworked niche of Real Estate that can be
quite profitable and rewarding. Do your homework, ask the questions, read the statutes and who
knows, you may just end up with the cabin and the property at 10% of the Assessed Value. Good Luck!

Hope that this helps.


Re: Update on back taxes acquisition - Posted by M Sutherland

Posted by M Sutherland on May 30, 1999 at 11:42:22:


Recheck the law in your state. Many give the tax lien holder first right of ownership. Probably in your state will require having assumed all years back taxes. Worth further investigation. It’s only due dilligence but could have significant payoff.

Re: Update on back taxes acquisition - Posted by Barbara (ME)

Posted by Barbara (ME) on May 30, 1999 at 22:27:16:

It certainly does help, and thank you so very much for your trouble in answering me.
Barbara (ME)