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By Torang | Save $10,000's | Broker in 75063
  • How Do I Buy Homes at Tax Foreclosure Sales?

    Posted Under: Home Buying in Denver City, Foreclosure in Denver City, Property Q&A in Denver City  |  March 29, 2013 9:46 AM  |  301 views  |  No comments

    1

    Locate a property in foreclosure by searching public records. You can also check national databases of auction properties online. Look for houses that have liens placed on them for unpaid property taxes. Check to see if other creditors have placed liens against the property. Go to the county recorder’s office to research whether there are additional liens on the property, as well as how much money is still owed on the mortgage. If you buy the property at auction, you will be responsible for satisfying any other liens placed against the property. Certain liens may take priority over the real estate property tax lien. Conduct a title search before the auction date to save you some unknown woes should you be the winning bidder.

    2

    Check assessed values and sales prices of similar properties located in the same neighborhood for the past three months; this will give you an idea of the rate of real estate appreciation in that area. Determine how much you want to bid at the auction once you collect all the relevant information. Calculate how much of an additional investment it will take to increase the property’s value. RealtyTrac points out that a fair bid is usually about 20 percent below the property’s full market value, although sometimes an investor can get an even better deal.

    3

    Drive by the property to examine its exterior condition and the type of neighborhood in which it is located. Even if you can’t get inside to inspect the property, take a careful look at the outside and try to estimate the cost of any obvious repairs that might be needed. Not all homes going on the auction block schedule an open house for potential bidders to inspect the property, but, according to ForeclosureRadar.com, the outside appearance of a home is normally a fairly accurate indicator of what you will find on the inside; a house that looks well-cared-for on the outside is usually well-maintained inside.

    4

    Talk to your lender about the amount of equity you have in your current home. You may qualify to get a loan of credit to purchase a real estate foreclosure. Another advantage of getting a line of credit based on the equity you have in your primary residence is that you might not have to come up with a down payment to get the loan.

    5

    Find out when and where the sale will take place. Usually, a tax lien sale is held by public auction at the courthouse in the county where the property is located; sometimes the auction takes place on the property itself.

    6

    Research the bidding procedure for tax lien auctions in your area, as the process varies from state to state. In some cases, a bidder must bring the full amount he intends to bid to the auction, either in cash or in the form of a cashier’s check. Foreclosure laws in some states only require a bidder to pay 10 percent of the bid on the day of the auction, and then pay the balance within a specified period of time. Contact an attorney or real estate agent in the area to learn more about foreclosure proceedings in your state.

    source : http://homeguides.sfgate.com/buy-homes-tax-foreclosure-sales-2855.html

 
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