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Britny, Home Buyer in Indiana

I recently heard through the grapevine that there is a such thing as tax foreclosures. Now I am pregnant and

Asked by Britny, Indiana Wed Jun 4, 2008

trying to find a home to buy for my child to be secure. How do I find out more without spending money on a book to learn all of the other stuff?

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If you're not willing to "spend money on a book to learn all of the other stuff," then you're not ready to buy. Not that books are the source of all wisdom, but you've got to have some idea what you're doing. You have to at least know what questions to ask of a Realtor. You have to know, in broad terms, what a foreclosure is. And you have to know what a tax foreclosure is, versus a foreclosure by a lender. And what the difference is between a foreclosure and a short sale.

Buy a book. Spend a few bucks. Or surf the Net--here at Trulia and elsewhere. Learn "all of the other stuff." Take an active role in the process.

That's not what you wanted to hear. But that's what you need to hear.
1 vote Thank Flag Link Fri Jun 6, 2008
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
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Each state and/or county will have different rules regarding tax sales. Some will sell the property outright as in California, others will only be selling you the right to earn a high rate of interest on the outstanding tax lien. Check with your local tax collector's office to find out more about tax sales in your area - you should be able to find some information onine.
0 votes Thank Flag Link Wed Jun 4, 2008
When property taxes become delinquent, an involuntary tax lien is placed on the property by the taxing authorities to recover the amount owed. If the delinquent taxes are not paid within a predetermined time frame, the property is then sold at public auction. A minimum opening bid is required that covers the delinquent property tax amount, legal costs, interest, penalties, and miscellaneous fees.

The highest bidder at the auction receives a tax sale certificate when he pays the bid amount. The delinquent property owner can regain title to the property if they pay back the lien amount plus interest and miscellaneous expenses before a redemption period set by law expires. The redemption period can vary from several months to several years in some states.

If there is a mortgage lien on a property, lenders will usually pay the taxes and add the amount to the property owner's mortgage to avoid foreclosure and protect their investment. Many properties don't make it to the foreclosure process for this reason.

You should be thoroughly aware of the risks and potential headaches involved with tax foreclosures and clearly understand what the delinquent parties legal rights are, specifically their redemption rights.

I would highly recommend contacting a local Realtor and finding out what options are available in your area....there are first time home buyer programs out there....good luck!
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Wed Jun 4, 2008
The Hagley G…, Real Estate Pro in Pleasanton, CA
MVP'08
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