Home Buying in 11234>Question Details

Geneva, Home Buyer in Brooklyn, AL

Can I purchase a bank owned home by just paying the taxes owed?

Asked by Geneva, Brooklyn, AL Tue Jan 18, 2011

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It's not too likely but I guess it is possible in some cases. If the IRS has a lien the bank can't sell it so it has to get rid of the lien. I have sold two properties this year that had IRS liens and the IRS dropped or reduced the lien when they realized there was no money being made on the short sale. Liens can be made to go away. But the bottom line is the bank owns the house and has some amount of value for it in their minds. Let's say $100,000 and there is a $20,000 tax lien. Why sell it for $20,000 when you could pay off the lien and sell it for $80,000? If the house was worth less than the lien, I bet they would sell it to you for the lien amount, but would you even want it?
1 vote Thank Flag Link Tue Jan 18, 2011
I think you are confusing bank owned homes (which are owned by the lender after the homeowner has defaulted on the loan) with tax forfeiture homes. Tax forfeiture homes are owned by the county where the property is located. Contact your local county for information on how to buy a tax forfeiture home. This is the kind of home you can purchase by just paying back taxes. But be prepared to pay more, as these homes are often auctioned off.
0 votes Thank Flag Link Tue Jan 18, 2011
Thanks for your expert advice Tim.
0 votes Thank Flag Link Tue Jan 18, 2011
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