Property behind on taxes- what would make it a good deal

[Greg Koszkul]

After looking into a property and running the numbers, I noticed that it was behind on taxes by a couple years, and I know that I can negotiate the purchase price based on this. Would you simply subtract the tax delinquent amount from the purchase price, or would you build in more of a "buffer zone" to account for other expenses and/or tax increases in the coming years?

[Steve Morris]

"Would you simply subtract the tax delinquent amount from the purchase price, or would you build in more of a "buffer zone" to account for other expenses and/or tax increases in the coming years?"

If they are not yet at the lien/default status (in OR that's like 3 years of non-payment), think I'd figure a price that works (assuming all taxes are current) and then make sure you get clean title at close.  Title can sort out what is due and it comes out of seller proceeds.

If you're at the lis pendens state and close to a tax sale, find out the amount and then take that much out of your price.  Make sure title gets you clean title again.

I guess you can wait for a tax sale, but you may have to wait (check with your state/county) for redemption by the owner.