Tax Deed Sales

What are Tax Deed Foreclosure Sales?

Tax deed sales are a great way for investors to invest in real estate, often at a fraction of the full market value of a property. Tax deed auctions take place because a homeowner has failed to pay their property taxes. When this happens, the county will sell the property at a public auction in order to recoup the money lost on the unpaid taxes. The exciting thing about this sort of auction is that taxes represent only a small fraction of the value of a home, so when a property is sold for unpaid taxes it is sold for a very small percentage of its actual value.

Tax Auctions are a Great Way to Buy Real Estate

You can buy foreclosure properties at tax deed auctions across the country. If you are willing to do your research and bid at auction, tax deed auctions are a great way to buy distressed properties for very little money. Most homes sold at these auctions are sold for the amount of tax owing plus any fees, interest and additional costs the county has incurred on the properties.

Most tax deed auctions must be publicly advertised. Announcements of these sales are usually printed in newspapers and advertised at the local courthouse. At these auctions, the highest bidder is the successful bidder and becomes the owner of a property, clear of any liens or mortgages.

Avoiding Problems at Tax Auctions

As with any investment, tax deed auctions come with risks. It is possible to get carried away while bidding, for example, and bid more than a property is worth. To prevent this, it is a good idea to research a property carefully before you arrive at the auction and to set bidding limits for yourself. Since all homes sold at tax sales are sold "as is" careful research is a must.

Many potential homebuyers confuse tax deed auctions and tax lien sales. Sales of tax liens are in fact not purchases of property but purchases of the right to a tax lien. When a homeowner does not pay their property taxes, the county will sometimes place a tax lien against the home and eventually sell the right to this lien to investors to generate revenue. Investors who invest in a tax lien foreclosure are essentially loaning money to homeowners so that homeowners can pay their taxes. If the homeowner does pay their taxes, the investor gets a great return on their investment. If the homeowner does not pay their taxes, the investors gets the deed to the tax lien homes they have invested in. Both tax deed auctions and government tax lien sales are a great way to invest in real estate.

Getting Started with Foreclosures

If you are ready to learn more about tax deed sales or want to start browsing foreclosure listings, FindForeclosureProperties.com has the resources and the accurate, informative listings you need to get you started. We can show you how to buy foreclosures the way seasoned professionals do and we can help you track down the foreclosures that are right for you.

Related Articles

• Tax Distressed Properties
• Tax Credit

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