How to buy a property before the tax auction. Many people are wondering how to buy a tax defaulted
property before the tax auction. With tax sales growing in popularity, many investors are asking the question, “How can I buy a tax delinquent property before it is sold at the auction?”
The answer to that question is simple, but complex. The simple answer is to contact the owner of the property and have them agree to sign the deed over to you in exchange for you paying off the taxes. This can be done with a quitclaim deed. That sounds simple enough, right?
Before you decide to approach the owner of a property you need to know if there are any liens against the property that you will be responsible for. If the property is sold at a tax auction, most liens will be removed, but if you buy the property outside of the auction all liens will stay with the property.
The county recorder will have the information you need about which liens, if any, are against the property you are interested in purchasing. A title company will also be able to find this information for you and is often the best option since they research the properties chain of title to be sure which liens are there at the time of the title search.
If there are no liens against the property other than the taxes, you can pay to get the taxes current and file your Quitclaim deed for usually less than what you would have paid at the auction.
This process can be more time consuming than your regular research because of the time involved with contacting and negotiating with the current delinquent property owner. I don’t recommend following this process unless there is a piece of property that is showing interest from multiple parties.
For more information on Tax deed sales and how to follow the process correctly, visit http://BankREOTraining.com
