The Delinquent Tax Sale and How You Can Participate
If you’re not familiar with the concept of a tax delinquent sale, you may be missing out on a great opportunity to purchase a home for much less than its actual value. These properties are put up for auction when owners fail to pay their property taxes. Typically, this is a cash sale that takes place once a year in almost every county in the country. There are a number of advantages to participating as a buyer. For one thing, you’re cutting out the middleman and buying directly from the county. This speeds up the process and prevents you from going through escrow. Second, it is an incredible opportunity to make an investment that can become a real source of income.
Starting
Your first step will be to contact your county courthouse and ask for the date of the next delinquent tax sale. Once you have this information, ask them where you can get all the information you need. In many cases, a brochure will be available. It will detail the properties to be auctioned and can even provide a map to help potential bidders visit homes before the sale date. You may have to pay for the materials, but it shouldn’t cost more than $10. For that price, it’s a valuable tool.
Research
Don’t take out a loan and show up to the auction ready to bid on properties without seeing them yourself. This is a big mistake and can easily result in you getting a home that you couldn’t sell even at auction prices. There are often some very nice finds at a delinquent tax sale. But let’s face it: 90% of properties will be in some state of disrepair. The millionaires of the most beautiful neighborhoods of your city are not going to suddenly forget to pay their taxes. Don’t let this put you off! There are still some gems out there. But you must visit each property that you have the slightest interest in bidding on.
offers
You can’t wait until you’ve made a successful offer on a tax delinquent sale to go and find the funds you need to complete the transaction. Most counties will expect payment no later than the next day. If you make a winning bid and can’t get the money right away, they’ll just sell it to the next guy in line. You may not be welcome to return next year. Make sure you get any loans you need in advance.
