Steps required to acquire tax lien multi family properties?

[Kenneth Rogers]

I am currently taking advantage of the marketplace tool here on the BP website for finding foreclosures and I've come across some multi family properties in my particular area, Akron/Canton region in Ohio, that show tax lien beside them. I am wondering what would be the necessary steps to pursue such a possible opportunity? Also, are there certain negotiation tactics that could be utilized when coming up with a purchase price? I am still looking to buy my first buy and hold as an owner occupant.

[Jason Eyerly]

That really depends how much the property is worth versus what is owed because keep in mind that the bank must also accept your offer, and they generally will not take 75% of what it is worth. That being said, you will need a property worth say $100,000 where only $40,000 is owed and you offer the property owner that amount in order to get them out of the house. If 95k is owed and you offer 75k the bank will likely tell you to shove it.

The second method would be to buy the tax lien. It's very likely that the bank will pay the tax lien before you can close on the property in order to save their equity, and the homeowner may do the same. Often enough, approaching the home owner and bank is a viable way to get it redeemed sooner rather than later, especially if you have a tax certificate with little time left on it. However, some states have laws regarding when and if you can contact interested parties in the property about the lien, so I would check into your state code and more importantly local County codes regarding tax auctions.

Does this answer your questions?

Good Luck,

Jason Eyerly