OfflineHi everyone. I brought two houses off of ebay with back taxes. I got the quit claim deed for both properties. My plan was to live in one and rent out the duplex, but my problem is the duplex the taxes are due soon ($7500) and I don't have it. what are my options: can I sell this property or will I lose it once the state foreclose on it? Thanks
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Find out when the auction date is. If it is like Arkansas you have one year to redeem the property BUT you will also have to pay additional fees that may occur....plus a lot of investors buy tax leins because the goverment requires the state to let their money to have somewhere around 42% interest sitting there waiting on the owner to come back a redeem. You can't get that kind of interest rate when your money sits in a bank account.
Did the seller inform you that there were back taxes when you bought the property? Did you check with the tax collection division to see if there are any leins on the property by the city like for uncut grass in the past or debris cleanup? Many times on abandoned properties there are leins and back taxes owed.
Your options are to either pay up before the auction date or.... advertise it for sale with a "heads up" on the back taxes owed and leins.
I always make sure to check on back taxes and leins before making an offer on the property. Those 2 figures can mount up to a lot $$$....sometimes so much that it makes the property not worth it.
Good luck with your deal
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