Can I buy a house that is pending a county tax auction foreclosure?

Question

David Krulac · Answer

@Stephen Gregory

Do a title search, check for other liens, get an attorney involved and if you're dealing with the owner get a warranty deed.

Mark Elliott · Answer

both replies are right, stephen. you have to find the owner, make an offer and close the deal. make sure the offer includes the back taxes. i. e., if the house is worth $10,000 and they owe $5000 in back taxes, offer $5000 plus you assume the back taxes. he is a trick not mentioned yet. some, not all, local governments will allow the owner to make a payment arrangement on the back taxes. you simply just have to go into the treasurers office and ask. here in western new york, there is one local that will allow you to put just 25% down and make payments for the next year and a half. you do NOT have to tell the current owner about this. if you structure your deal to include you assuming the back taxes, you are not stating that you will pay them up front, you merely stated that you will assume responsibility for them. check with the local authorities and see if you can work such a deal

Jay Hinrichs · Answer

@William Avery

quit claim VS warranty or grant deed or whatever deed is common in certain states is state specific.. Like in MS it is fine we do it all the time.. IN Oregon Nope... you can get insurance but you can also have issues.. it won't be cut and dry yes no but it can be a problem.

But I do know many other states title companies won't insure them... so your advice is very good.

as for this scenario if there is plenty of time before the sale.. simply open escrow at your title co. of choice .. to a purchase and sale agreement that has the tax's being prorated at close .. and let the title co.. collect and pay the tax's in escrow.. sale is put off you get home with title insurance and all is well.

William Avery · Answer

Be careful with the quit claim deed. The title company will not accept it as a valid transfer. They will make you track down the seller and get a warranty deed.

I just went through this in late 2014. I was trying to buy a house where the current owner had acquired it with a quit claim. The current owner had to track down the previous owner, from years past, and get a warranty deed.

I don't know if this is a Texas thing or even if it is just a thing with the title company I was using. But, it was a pain and did delay the sale for 6 months.

Wayne Brooks · Answer

Yes, you simply buy it, if you have the resources, and can make a deal with the seller.

Bret Blackburn · Answer

@Jay Hinrichs-This is great information and thank you for sharing. I know this is a very old post, but would you mind sharing how you come up with your offer price?

Chris A. · Answer

David is on the right track. You can write a contract with the seller, just make sure you go though a title or escrow company. Get title insurance and make sure that any taxes are paid out of the sellers proceeds.

Dale Myers · Answer

Stephen, I would be curious how this works out for you.I am in Round Rock as well!

Chas Fabiano · Answer

Look up Deed Grabbing on Google. Quit claim deed and pay back taxes before auction.

Can I buy a house that is pending a county tax auction foreclosure?

Can I buy a house that is pending a county tax auction foreclosure?

Most Popular Reply

10 Replies