Need Help On Bidding In An Upcoming Tax Lien Sale

Hello, my county has an upcoming tax lien sale and I am confused on what the bid price should be. Sealed bids are to be submitted starting at the sale price. We are looking at 3 specific properties and each has a sale price between $1,500 and $3,000. Couple questions:

1)How do we bid to have the best chance of winning the bid.

2)Do we then just wait to see if the owner pays the back taxes --who does he pay them to?

3) If we do get the right to foreclose, does that mean we purchase the property for whatever is owed to a bank?

4) What if there are mechanics liens or IRS liens on the property, is there a chance we would have to absorb them?

Sorry for the very basic questions, we ended up looking into this for specific properties and want to understand as much as possible before we jump in. Thanks so much!!

Comments(11)

  • quidam13th May, 2007

    What I gave you was for Florida, Maryland rules are different and I do not invest there so I cannot help you. Sorry.

  • cycledog13th May, 2007

    Quidam, if you worked or supplied materials for the properties and have not been paid you need to file suite on the owners and put a lien on the properties. More than likely the bank that loaned the builders the money to build these properties will pay the taxes before they go to auction. If the banks foreclose on the owners they will need to pay you to get you to release the lien that you filed at the courthouse.

  • lienlearner22nd May, 2007

    Thanks, we have filed suit and will be able to place a lien once we have a judgement but this is turning out to be a very lengthy process. In the meantime we were hoping to win the bid on the property on the small chance that we do win the right to foreclose somewhere in the future. This is a sealed bid auction so any tips on winning the bid are appreciated. thanks,

  • ypochris7th May, 2007

    Risky to buy without a drive by. Sometimes there is a reason people are not willing to pay the taxes on a place- you might find yourself unwilling to pay also.

    Chris

  • Dave1877th May, 2007

    Oh the get rich quick seminar did have a handout. It costs $4000 or act now for half price

  • lynnw19626th June, 2007

    Another one you may want to check out is bidvolusia (google it). Once registered you can link to other counties. You can bid on-line and they have property descriptions.

  • linlin12th July, 2007

    Florida does not carry over although during the Quiet title mortgage companies will sometimes try to get the property back.

  • linlin12th July, 2007

    This one had some good generic info
    http://www.mindlikewater.com/business_directory/tax_lien_sales_directory/tax_lien_sales_index.html

    but for specifics you will need to consult the state statutes about the tax deed[ Edited by linlin on Date 07/12/2007 ]

  • bigdredd12th July, 2007

    I respect your opinion but there is over 300k in equity that could go towards any defects.

    plus commercial buildings for that price is limited in ny

  • linlin13th July, 2007

    You need to specify the state as different statutes and procedure apply

  • castcore13th July, 2007

    CA here, sorry,

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