Upcoming tax sale,all liens erased-?'s for Jackie - Posted by Vic Lewis

Real Estate Investing Real Estate Law
#1

Posted by Bud Branstetter on January 06, 1999 at 21:32:11:

Vic, You don’t say what state you are in. Most states the liens do not get erased. Tax sales can be lucrative but if you don’t know your laws and procedures they can also be an entrapment. I beat the subject back and forth about contacting owners prior to the sale but ended with the opinion I was better off not. While that may not be true now or where you are at it again points out it is best to learn first. In Texas, the tax sale is similar to a foreclosure auction-Highest bid on the court house steps, Prompt payment in cash.

#2

Upcoming tax sale,all liens erased-?'s for Jackie - Posted by Vic Lewis

Posted by Vic Lewis on January 06, 1999 at 20:28:54:

Thanks for all the flipping info for us newbie’s.

There is a tax sale in my area at the end of Feb. where all liens are wiped clean. Shouldn’t I be contacting some of the homeowners before the sale and try to flip some of these? Any ideas for a simple letter that doesn’t offend the homeowner? Any ideas on how to arrange funding if I wanted to buy at the sale? Thanks again from a newbie wanting to get his feet wet.

#3

Re: tax sales - Posted by Jackie in Dallas

Posted by Jackie in Dallas on January 06, 1999 at 23:12:36:

Properties with back taxes can be good candidates for a flip… however not ALL liens would be erased. If there is an IRS lien is will stay - at least for awhile - 120 days here.

Tax sale properties are certainly some you should research for possible flip deals though!

The tax sale laws are different in every state - you need to find out what your’s are. In Texas, if you buy at auction you need all cash within 1 hour of the sale. Furthermore, if there was a homestead exemption of the property, the owner has the right of redemption for 2 years ( only 6 month without the homestead). So if you bought the property at auction - it would be hard for you to do anything except hold on to it for the redemption period.

In Texas, Should the owner redeem the property within the first year - they would have to pay your purchase price PLUS 24%, the 2nd year it goes up to 50%.