Tax Auction Strategy

[Kevin Hurney]

I've come across a strategy where you obtain the list of properties that are going to be sold that month. Then you track down the owner and offer to pay the taxes and and an extra couple thousands dollars. The owner would then pay the back taxes and then sign the house to you using a "quick claim deed"? Anybody doing this strategy?

[John Miller]

I don't know Virginia laws on tax actions, but your idea only works if there are no other liens against the property. Getting a quit claim deep does not protect you against lien on the property. The quit claim deed is only saying they have no interest in the property, other people or lenders could. You would have to do a title search before to make sure there are no other recorded liens against the property. That in it self does not protect against unrecorded liens.

The best way is if you could buy the tax lien from the county or state who ever holds it and then do a foreclosure sale as I assume the tax lien in Virginia is in front of everyone. Not sure if Virginia has redemption rights in a foreclosure, but if the tax lien price is cheap enough you can wait out the redemption period.