Tax Sales Continued

you tax accessors office and ask when next tax sale is coming up. In Los Angeles County where I am they publish the list of homes in December and the sale is once a year in February.

depending on where you live you may just be able to go and purchase right at office without waiting for sale

Thank you Anita, this helps tremedously.

JButcher

Hello,

I have done some research and found out that some counties will not even sell over the counter properties even after they have a tax sale and they don't sell at that time.

Does anyone know what happens with the properties next? I think they just hold them until the next sale.

Anyone have any info, on this?

Thanks,
Sebrina

Anita posted what happens to a tax sale that does not sell at any given scheduled sale. I believe she said they put on the list for the next tax sell and it is possible it may be reduced second time around. See my post and Anita's answer. She provided a lot of information.

JButcher

When you go to the tax office. Do you pick a home that you are interested in and simply pay the unpaid taxes that was not paid by the owner? Then what happens when you pay the taxes? Do you acquire ownership at that time or how exactly does that work. I don't fully understand can anyone help answer my questions. Please explain in detail.. If you don't acquire ownership how do you profit? Cindy

Cindy you look up all or as many as you can then you go look at them before a tax sale. By looking up the parcel # it is very simple. No you do not get ownership right away but you will aquire many properties. you have to go through the court system to aquire a deed that is free and clear.But they will be fixer uppers! But still a good deal for just the back taxes!

I had remembered that someone had said on the forum about tax sales and the constable or sheriff (County offices) that preside over the sale. Someone mentioned not to do something in regards to tips on purchasing tax sales but you had to be careful and I cannot find that piece. Can someone tell me why you have to be careful when purchasing a tax sale where a sheriff presides.

JButcher

I dont know about any other state, but I do know that in Arkansas if you buy a house at a tax sale you have to hold the house for about 5 yrs. In that time the owners have the right to buy it back from you for the back taxes you paid, the taxes you pay while in possession of the house, repairs, intrest at sertain rate not to exeed state law, and etc. If in 5 yrs they dont come get the house then you have the option to sell it. But you can rent it out in that 5 yrs that you have possession of it. It really depends on the state.

Thank you Darrell, I appreciate your help. You made alot of good points. Our tax sales here in W.VA are in November of every year. You definately got that right about the "just for back taxes". You are so right. Thanks, Cindy

Ok, I do not understand what is the point of purchase or satisfying the taxes if you do not have any rights to the property immediately. Maybe I misunderstood but even if the original owner is given the right to buy it back my qustion is...(In your State)

1.Owner has right to buy back the house. If so, are you legally bound to sell it back or is the property still yours legally.

2.You cannot sell this property or once improvements are made you have to sit on it.

I need to check Texas laws and see what they allow.

JButcher

I can help with this question or at least point you in the right direction. I will be attending my first Tax Property Resale next month. I live in Tulsa, Oklahoma and purchased the tax sale information from the infomercial on TV about 2 years ago. Anyway, depending on the state, and each one seems to have a different system, you can buy either a Tax Lien here in Oklahoma that is held the 2nd Monday of October or real property for taxes held on the 2nd Monday in June. You pay the back taxes and then must hold the lien for 2 years, at which time the owner has the opportunity to buy it back from you for the taxes plus accrued interest. You do not own the property and can not do anything with it. It's kinda like putting your money in a savings account with anywhere from 8 percent to 16 percent (depending on the state)interest. That's the tax lien sale.

The Tax Resale held on the 2nd Monday in June is a Resale of Property for taxes. It is an auction and if not resold becomes the "involuntary property of the county". It is then comes under rules of a "Commissioner's Sale".

I picked up the guidelines for the resale at the County Treasurer's Office and there are resale fees involved including a research report, advertising cost, deed fee and deed filing fee. The total is $160.75. So if you are the successful bidder on a piece of property, in addition to the taxes, you also pay the resale fee.

The list of properties here is free and also can be downloaded on line 4 weeks before the tax sale. I was anxious and so I downloaded them and started looking at the properties. What I also did was go to the County Treasurer's office and then to the Assessor's Office and found someone to help me look up the parcel numbers. It was absolutely the best way to view a property because in addition to where it's located, it also gives you pictures of homes if there is one on the property, AND, gives you the condition of the home. So far, I've found 2 that were in "fair condition". The majority of the homes have been in "poor" or "very Poor" condition.

And finally, let me tell you about the deed. Here in Oklahoma, you will get a "fee simple title" in 30 days after you purchase the property, but must file for a "quiet title" with a lawyer for full ownership. I haven't researched that one yet. I also want to share with you that in Texas when you purchase a Tax Lien it's only for 6 months. So instead of waiting for 2 or 5 years to see if the owner can pay the back taxes, you only wait for 6 months. Again, there are different rules for the different states. From the County Treasurer's Office, I understand they no longer do "over the counter" sales and haven't for the last 2 years. So check with the County office and/or County Commissioner's office in your state.

Ok, this really is my final point (smiles), but I wanted to say to reread the chaper in Dean's book on Tax lien sales. I read the chapter twice and he gave a really good example when he found the owner of a property he wanted and instead of waiting, visited and offered him a deal. Good luck!

Denise,

Thank you for the detail you sent. I am only on page 199 of the book so I have not really gotten to it yet. I looked up Texas Code today and it was rather hard to to understand except it appears they used to allow the original owner of the property powner at one time to have the ability to repurchase the property within 5 years. It did state that was repealed in Texas so I never could figure out if now it is 2years but if it is six months that is a good thing for me. Does the County have to notify the original owner that they have so much time to repurchase the property or do they leave it to their imagination? You outlined this beautifully for me and I do appreciate the information.

I will check with the County Treasurer's office. You have been a big help and I will skip over to that Chapter and read the example.

JButcher

Thank you for sharing that info on tax sales. I have never done one nor looked into it and I'm grateful for you taking the time to teach us what you know.

Thanks again,

Rina

Now is a great time to look at tax sale properties in Michigan and Ohio as they just had their sales in April/May. So look into the "left overs" that didn't go at auction for whatever reason. THOSE you can get at great deals because the banks and towns REALLY want to move them and are willing to wheel and deal so to speak.
Best to you all.
CAM

in september, however this is made public in the previous month in the classified sec. of your local newspaper, you can get GREAT DEALS from the "repository" this is where the propertys go IF they don't get sold @ TAX AUCTION, these propertys can usually be purchased @ deeper discounts. SULLY.

I am assuming this a "struckoff sale".

Very well stated explained. Direct and to the point, you certainly answered all of my questions. Thanks Denise.Cindy

I too live on Oklahoma but in Oklahoma City, I am currently studying the entire tax sale proccess. You said you purchase from an informercial do you have some info on that?

Thank you for the information it was great. I cut and pasted it to my notes section.