How do Tax Liens effect an investment property?

[CJ Moulton]

I have been looking into Foreclosures in my area and found a few properties under Tax Liens. I do not know much about them, just that they are put on a property if the owner does not pay their outstanding property taxes.

As an investor, how do you get passed this? Is there a way to go about this without paying any of the taxes? How do Tax Liens differ from Foreclosures, and does it change the Foreclosure process at all?

Any insight on Tax Liens and Foreclosures in general is greatly appreciated! 

Much love.

[Kevin Sobilo]

@CJ Moulton, that is a whole big topic that would require a book to answer fully.

In short, no you are not going to avoid paying the delinquent property taxes unless you buy the property at the Judicial Tax Auction (Free & Clear Sale) or off the Repository List. That is assuming you are talking about Pennsylvania where it looks like you're located.

One other comment, these tax sales and foreclosure auctions are not well suited for a beginner. Even when buying from the "Free & Clear" tax sale the property often has title issues that need to be dealt with and even then title insurance likely isn't possible for maybe 1 year because the process is so messy and insurance companies don't want to insure them right away.