Going after a home that has a tax lien already purchashed

[Jim Montville]

I found a home that has been vacant for a few years due to the owner passing away.After some research I found the property has a tax lien that was bought by a company who buys a lot of them in my area.I was wondering if anyone has tried to purchase a home in this situation.What do these companies tend to do with these liens?I'm very new to this so thanks in advance for the help.

[Nasar Elarabi]

It depends on the State. SC is a Tax Lien State. I did a deal their back in 2012. The tax lien was purchased for 1 year in back taxes. So The lien purchaser has 366 days to wait before he can foreclose on the property or claim the property. I did a deal with the owner and was able to wholesale the property due to we had more than enough time before tax lien purchaser could take action. The tax lien purchaser is paid back by a fixed interest rate.

So in a Nut shell you have to see how long purchaser has before he can take action.

[Reuben Stewart]

Alot of companys that purchase huge amounts of tax liens are looking to make money on the intrest the tax lien will build throughout the redemption period. Most of the time they dont really care about the property its self.

What we do is find any info on the owner, like phone numbers or addresses. And approach them and offer to pay off their tax debt if they are willing to sell me the property. However if the owner passed away, you can find the next of kin and do it that way. But theres some many things that are involved in going that route, if your new to tax lein investing it will make your head spin. You have to really know what your doing going that route. But ive added some nice rental properties to my collection going that route.

Or it dosent hurt to call the company and see if they are willing to sell you the lien for the purchase price and the intrest occured thus far. That wont gurantee the property wont still be redeemed but ts an option.

[Charlie Hampton]

I also purchased a property that had a tax lien. I made that a contingency in my offer. I made my offer stating that the tax lien will be paid with the proceeds and the rest will go to the sellers. They just cut a check to the lien holder at closing and mailed it out. Pretty painless.

[Ned Carey]

Buying a property with a tax lien is just like buying any other property, the back taxes get paid off at settlement. The one caveat is that it is possible the tax lien holder could have already started foreclosure and it could finish before you settle. In that situation you would get your deposit back (assuming a properly written contract.)

[Jim Montville]

It's not that it just has a tax lien that lien was bought at auction by a company that specializes in that sort of thing.

I don't think the fore closure process has started at least I can't find any paperwork that says so.If the process is started I take it theres no way to get the home until the foreclosure process is complete?The house is in Worcester M.A..I can't really find a time table for how long the company that bought the lien has to wait before they can start the foreclosure process.Maybe some fellow M******** can shed some light on the timetable.