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Just a Few questions…
What’s the difference between a tax a lien and tax deed sale?
Also, what if I buy a home with property taxes that are in defalut and about to go to sale on courthouse steps? I offer the owner $500 (or less) to deed the title to me via a quit claim deed. Then I let the property go for sale in the bidding wars. I heard that the starting bids are the taxes due and penalties. For example… if I buy a house for $350 from someone that is losing it at a tax sale because they owe 10K in past taxes, the bidding will start in a few weeks for 10K (house would be worth 50K.) It ends up selling for 20K…..what happens to the “excess proceeds” which in this case is 10k?
I heard that the “excess proceeds” go to the owner on record (which in this case would be me). Has anyone heard of this or have any thoughts/experience?These are homes that are free and clear. They are for the most part junkers that rehabbers want at a great price. No right of redemption once the home is sold at tax deed sale. There is no secure title though. Also, I think the key is getting the properties deeded to me via a quit claim. Thus I never really buy the house in an escrow. I plan to send the owners a letter stating that the’re going to lose their house and it will be sold unless they pay all taxes due. In most cases on these junkers, the owners don’t really care, so I can offer them a few hundered dollars to deed it to me. They have nothing to lose. I think I will make a call to the county tax assessor to find out the details on how to recover the funds before I do one.
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