Back Taxes - Posted by Shaun

Posted by Bill H on December 13, 2006 at 20:24:26:


I buy lots of tax liens and deeds, perhaps the owner is misunderstanding. I do not know of any state that sues to collect back taxes on real estate…not cost effective…they do not have to…they merely put it up for sale for the taxes.

As the other posters have said…do your homework…WELL…and if satisfied…proceed.

Good Luck,
Bill H

Back Taxes - Posted by Shaun

Posted by Shaun on December 12, 2006 at 14:31:33:

I’m totally new to investing and I just found a property that the guy is being sued for back taxes owed in the amount of $13,178. However, he is not living in the property and it is valued at $121,540. How do I go about approaching him and making this happen?

What state is the prop located…? - Posted by JT-IN

Posted by JT-IN on December 12, 2006 at 16:45:06:


It matters quite a bit. In one state this may be a major deal, while in others it may be just one step of many, toward the owner losing their rights. So it matters greatly.

The other thing you must know is what else is encumbering the property.
e.g. 1) Let’s say there is a 150K mtg, in addition to these taxes.
e.g. 2) Let’s say that there is a 300K USA Lien for back income taxes. Now what…?
e.g. 3) Let’s say that the property is owned by he and his brother, and his brother recently died. Now what…?
Do you still want to buy the property…? Maybe so, but this would be another hurdle to cross, as well.

Bottom line is you need more info about the circumstances, then report back with that data, and there will be lots of help on how to approach the situation. Good luck.


Re: Back Taxes - Posted by dj-nyc

Posted by dj-nyc on December 12, 2006 at 16:17:52:

"Are you interested in selling your property? "

Re: Making what happen? - Posted by ed copp

Posted by ed copp on December 12, 2006 at 14:52:13:


Re: Making what happen? - Posted by Shaun

Posted by Shaun on December 12, 2006 at 16:07:41:

I would like to buy the property as an investment

Re: Making what happen? - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on December 12, 2006 at 18:18:04:

Check at the court house in the county where the property is located. The auditor should be able to show you where the tax bill is being sent. That is a place to start.

Since the taxes have not been paid for a long time the owner may have dissappeared, or may be incompetent. This may take a lot more searching, but could be rewarding.If you ask questions that others do not ask, and look where others do not look you stand a good chance of success. Good snooping.

You will not be able to buy the house until you find the person who can legally sell it to you.

If you are in an county/state where tax lein certificates are sold you might be able to purchase the tax lein and gain ownership this way. Ask the county treasurer about tax leins.

It sounds like you have a property where there could be a large equity. You will need to find out if there are other leins, and how much they are. You may have a situation where there are multiple owners, too. You will need to negotiate along the way to get ownership. If you hit a stumbling block, ask questions. If you should need cash, seek a partner with the necessary cash.

The neighbors may be able to tell you where the owner is. A little visiting around the neighborhood may be helpful.

Re: Making what happen? - Posted by Shani

Posted by Shani on December 12, 2006 at 19:50:55:

Thank you