forclosures for back taxes
is a house that's foreclosed for reasons of not paying taxes the same as being foreclosed for not paying on your mortage? Reason I ask is because I heard Ted Thomas speak on Tax liens and foreclosures and he talked about buying houses on auctions that were foreclosed for not paying their taxes during his tax lien class and not foreclosures.
Thanks,
Sappho
When a homeowner doesn't pay their property taxes, the county court usually sells tax lein certificates to investors who will pay the taxes for them and gets a tax lein certificate with a certain percentage rate of return on their money. If the homeowner does not pay their taxes, then at the end of the two years the investor can file for the deed of the home free & clear of any leins.
If a tax lein certificate does not sell at an auction, then the county may decide to auction off the property at a foreclosure sale auction. But, if an investor did not want the tax lein certificate, then there may be a reason behind it. Meaning, maybe the property is not worth having if the property owners don't pay the taxes.
That's my opinion on the subject. You should always research a property before buying the tax lein certificate or the home itself. Make sure you know what you're getting into...
Tanya
is there a way to skip the two year period and go directly to applying for the deed for just having paid the back taxes?
Foreclosure is triggered because of a default, or violation of the rules. The Deed of Trust or Mortgage is a list of rules that the borrower and lender will play by when the loan is made. A default can be failure to pay fire insurance, waste, renting the property, selling the property, not keeping a senior lien current (like property tax).
Note not all states are Tax Certificate states. Want to speed up the redemption period, try buying out the redemption rights from the homeowner.
Larry
http://www.thecreativeinvestor.com/modules.php?op=modload&name=Forum&file=faq#rules[ Edited by JohnLocke on Date 04/18/2004 ]
Larry, how and where do I find these public auctions, and what is the average Ican expect to pay?