How to Purchase Tax-Lien Properties for Sale
Almost every country’s government offers tax-lien properties for sale in one form or another. The government confiscates properties when owners do not pay for their property or income tax at any time, and conducts auctions to recover the taxes due.
A winning bidder can buy a property for much less than its actual value. Every state has different regulations and different ways of making those sales. So, you have to do your homework if you plan to start buying tax-lien properties.
Ideally, you want to know everything about property tax laws, return periods and other aspects of the cancellation process. There are many books on the subject as well as a wealth of information available online.
If you are looking for a tax-lien property for sale, be prepared to attend a tax-lien deed sale and not a tax exemption certificate. The buyer of the tax-lien certificate buys only the tax debts of the property owner, which the owner must now pay to the holder of the document. Otherwise, the holder can foreclose on the property.
Most of the time, the owner replaces the property with the certificate holder. So, if you want to be the owner, you must bid on deed sales. All of these auctions are open to the public.
To find this property, you must contact the municipality where you want to buy. You can contact or, in most cases, visit the county website. They can inform you where and when these auctions occur and can provide you or tell you how to obtain a list of properties for sale. Auctions are often published in local newspapers.
Once you get the information, you should research the properties to determine which ones are worth your time and the money. Of course, you want the value of these properties to exceed the taxes, fees, and penalties that are levied. You can find information such as the estimated value of the property, the taxes to be paid, the location of the property and any type of improvement, if any, have been made.
You should visit the location of the property, if possible since you have decided to bid. If you bid on the property and win, you are free to do whatever you want. You may choose to make improvements to your property, resell it, or retain it like rented property. You may even decide to move alone; it’s your choice.
Obtaining tax-lien properties for sale is only a small part of the purchase process. This post provided some necessary information, but due to the details and the law included, we suggest that we continue to learn more about the subject as well as the rules of the relevant state. With the help of a published post, you can’t just buy a tax-lien property – it’ll help you for sure, but you will have to make some additional efforts to be thoroughly familiar with the laws and regulations of the government. There are some reputable property consultants available in the market that can help you to understand the depth of the process.
Lisa Wayne is a professional property consultant who works at a real estate firm in North Carolina. She helps buyers to find property for sale in PA at a reasonable price and is a passionate professional with years of field experience and entertained numerous clients across Pennsylvania.