You might have heard of different ways on how to invest in properties and no doubt you have heard of tax deed investing as a great way to buy properties for back taxes. There are a lot of investors who have made successful sales in this investment, but there are still some who are doubtful with the process.
What is a tax deed sale? A tax deed sale is actually a forced sale by the government for a property because the homeowner’s nonpayment of taxes. All real estate property have taxes and failure to do so within a specified period of time will result to serious consequences like a forced sale by the government at a public auction. The minimum bid of the property in this process is the amount of taxes owed, interest, and all the cost associated with selling the property.
Nonpayment of real estate taxes is scary, but homeowners need to know that a post-sale redemption period is allowed. A ‘post-sale redemption period’ means that the original owner has a specified time to reclaim the property by paying the amount bid in the auction plus the penalty. The interest rate on tax lien certificates vary from state to state so, this means that interest rates in Bend Oregon homes differ from homes in Southern California, but typically the range is 15- to 20 percent, and even higher. The new owner, on the other hand, is not allowed to make any improvements until the redemption is expired. So, what if the previous homeowner does not redeem the tax certificate? The new owner must initiate foreclosure proceedings to take the title and the property. However, there are some cases where claims appear even when the foreclosure proceedings are complete. If this happens to your Great Falls condos, you must go to court for a ‘quiet title’ action. ‘Quiet title’ is a court procedure for establishing ownership when it is under dispute. But what will happen if the court rules differently? The investor will lose the property as well as all the money s/he invested in it. If the court favors your side then you will receive a clear title for the property.
Yes, it can be complicated that’s why If you are thinking of investing in tax deed sales, you need to be familiar with the jurisdictions each county has set for buying these kind of properties. You also need to know the pros and cons as well as the process. The first thing that you need to do is… Read more.