Buyings Liens to Gain Interest in Property

[Morris Lucas]

Hello BP!

I am not new to forum, but I read more than I post! I was wondering if any of you who purchase Tax Liens, Mortgage Liens, HOA liens, etc could shed some light on something. I have a house near my neighborhood that has been growing tall grass for at least 4-6 months. The other day i saw a county code officer knocking on the door as well. I have gotten so far as finding out the owners names of the property, as well as found out through county tax office that there is a $4000 Lien on the property as well as a "security lien" i think it was called, which i believe would be a mortgage, although i'm not sure how to find what bank holds the note.

My question is, is there any proactive thing i can do to acquire, or create a deal with this property if it is just sitting? Can I try to buy the tax lien from the county or try to locate the owner to try and negotiate to buy the deed since they have split?
I was thinking it would at least make a decent short-term rental until i can work something out with the mortgage holder or try to wholesale the option if i get offered a good price...any thoughts or does this strategy of buying liens only effective on free and clear properties?
I would much rather leverage my cash with liens then say, purchase a property for $30-50k and have money tied up in one house, if that makes any sense...

The house was sold in 2006 for 110k, i believe the current value is around 62k.
This is Gwinnett County. near Atlanta, Ga. by the way.

[Account Closed]

If the property was sold in 2006 for $110K then the mortgage is likely for close to $110K. You might want to learn more about how to use public records in your area (recorded documents and court docs). That way you'll know if the property is in foreclosure or already went back to the bank.

Your question about "buying liens" is complicated. If you a buy a lien you step into the lien holder's shoes as a creditor or lender. It doesn't give you any automatic rights to control the property or to rent out the house. You would still have to foreclose as a lender to recover the house or what is due on the loan. With other types of unsecured judgement liens, such as credit card debt, you need a judicial process such as a sheriff's sale to foreclose. You're only entitled to the amount of judgment, interest and fees. You don't get the house if somebody bids more than what you are owed.

I could go on. There are tax liens, and mechanic's liens. HOA liens are way more complicated. Buying a lien will give you interest but not necessarily any control over the property.