Purchasing Before The Auction
Is is possible to purchase a property that has a tax lien against it before the property goes to auction?
I'm thinking in terms of short sales - tax lien style.
Say I have my eye on a certain property where the owner is deceased. So I know there are back taxes. After I've done my dd on the costs, etc, can I just walk into the county office & tell them hey I'll pay you $XX for this property in exchange for the title?
Or do I have to go to the auction & compete with everyone there?
I do NOT have any first hand knowlege but I'm guessing that you will have to bid like everyone else. The govenment is not a private business and to be fair everyone must be offered a chance to buy. I find the goverment rarely makes exceptions. If they do it is usually for political reasons. If you know someone high up you might have a chance otherwise I doubt it.
GOOD LUCK
I have been working buying tax liens in Texas and it's a little different there in Oregon as my brother lives there in Salem and has a mortgage company there. I believe if you find out if there is a mortgage on the property you can approach the mortgage holder and buy it short or approach the living relatives with an offer to buy it for cash (discounted of course) as my experiance is the relatives just want the money and not the property. If you go to auction you maybe out bid and lose any chance of getting the property so try to buy it before is always the best bet as many people know about tax liens now and often there are deep pockets at the auctions looking to pickup a deal or two. Hope that helps! Salem is a beautiful place I was born and raised there.
[addsig]
nwms--(OR)-------------------
I grew up mainly in OR until I got old enough and moved to sunny CA. Lived near Monitor in Clackamas County. Went to Salem from time to time. I have a cousin who lives on the outskirts of Salem.
Nope. You will either have to deal with potential heirs or perhaps, if you are prepared for risk, an adverse possession of the property. Oh, the other poster suggested buying a loan against the property. That can be a good strategy . It could be extended to a lien or judgment against the propery also. You buy the encumberance against the property at a discount, pay the back taxes, and then start a foreclosure on your obligation.
Good Investing************Ron Starr*************
What would be the reason I would use to place the lien? A construction lien? Some other lien?
I've also heard of tax certificates. Does this mean you take the county's position by buying the debt?
There are no tax certificates in Oregon. What Ron Starr was talking about is buying a private lien on the property and not the County's lien.
Buying the mortgage lien, right?
nwms--(OR)-----------------
Right. If there is one. Or a judgment or other lien already existing against the property. Do a search in the county land records to see if there is anything against the property.
There may be no liens against the property, including there being no loan. If that is so, you are down to bidding at a tax auction, finding some heirs and dealing with them, or trying an adverse possession. This is risky and required detailed knowledge of the OR law on the topic, in my view. And should only be done if you are pretty sore there are no heirs who could show up. As you are a beginner at this type of investing, avoiding adverse possession is probably a good move.
Good Investing**********Ron Starr************