Delinquent taxes - homeowner just wants out

[Jason Patterson]

I've talked to a homeowner who inherited a home from her mother, hasn't paid taxes since 2008, and doesn't want anything to do with property - no profit from sale at all, just wants out. Per the tax lawyer the taxes and fees amount to about $30,000. The property is worth about $90,000. So it appears to be a great deal.

I'm really looking to find out is (since I've never purchased a property this way before) is how exactly would I go about making the purchase? What would be logical steps to lock this down? Thanks all.

[David Krulac]

Jason Patterson

Do your due diligence!

With tax sale properties ALWAYS:

1. Inspect the property, these properties often have major problems that either the owner knows about and is passing problems on to a new buyer, or they don't know about but through neglect or ignorance have heightened.

2. Do a title search to know what other liens, judgments, mortgages, etc could be out there. IRS tax liens are of real concern. Title defects can also be a problem. Some people intentionally let properties go to tax sale that they otherwise could not sell.

3. Know the rules of your specific sale. 50 states have 50 different rules in this case all real estate IS local. What liens if any are wiped out? Is there a redemption period? etc.

4. Obviously, know local values.

If you have done all the above and things are clean and to your liking, then proceeding to purchase the property before the sale will eliminate all you competition, unless they have also contacted the seller.

Been there, done that, wrote the book.