| If you're seriously considering getting into the real | | | | us with? You said it. Pure, unadulterated equity. |
| estate investing field, good for you for starting with | | | | Secondly, if you're new to buying houses for back |
| tax properties. You're already leaps and bounds | | | | taxes, you'll quickly learn that most of the time, |
| ahead of your "newbie" peers, almost all of whom | | | | these properties have been delinquent for quite a |
| make the mistake of starting their (sometimes | | | | while. Although the state code spells out how long |
| short-lived) careers in the realm of mortgage | | | | these properties can sit delinquent before going |
| foreclosures. If that's you we're talking about here, | | | | through tax sale, often they go much longer, for any |
| investing in mortgage foreclosure homes with little to | | | | number of reasons. Once property taxes have been |
| no success, perhaps you should look into buying | | | | delinquent for that amount of time, and we are |
| houses for back taxes instead. Why? One beautiful, | | | | talking years and years in many cases, you can |
| glowing little reason shines above all the rest: they | | | | safely guess the owner can't or doesn't want to pay |
| very infrequently, if ever, have the encumbrance of | | | | them off-- or simply is totally unaware that the |
| a mortgage. | | | | property is about to go to tax sale. |
| Let's back up. Properties that make it all the way to | | | | Believe it or not, sometimes they aren't even aware |
| tax sale have a few things in common, all of which | | | | that they own the property. This happens more |
| make buying houses for back taxes a mighty | | | | frequently than you might guess, in cases of missing |
| lucrative venture. | | | | heirs. These owners, if they don't want to sell to |
| Firstly, the mortgage issue. They've had plenty of | | | | you, will certainly be more than grateful that you |
| time to be "rescued" by the mortgage company. | | | | saved them from losing an inheritance! |
| Usually, if a property owner is behind on his taxes | | | | Lastly, the biggest thing common amongst tax |
| and his property is in danger of being auctioned of by | | | | foreclosures is that they are just plain a stellar |
| the county, the mortgage company will intervene and | | | | investing opportunity. Bidding at the tax sale itself |
| bring the taxes current, to avoid having the | | | | isn't usually the best way to get bargains, because of |
| mortgage wiped out at tax sale. Even more | | | | the hefty competition from other bidders. However, |
| commonly, homeowners' mortgage payments include | | | | buying houses for back taxes is easy, if you buy |
| their taxes- so those properties would never end up | | | | them directly from their insolvent or unaware |
| at tax sale. | | | | uninterested owners for pennies on the dollar. The |
| What this means for you is, when you do end up | | | | secret is to find them right before their house is |
| buying houses for back taxes, that's usually the only | | | | going to be permanently lost, when they've really got |
| encumbrance-- the taxes. Mortgage-free properties | | | | no other good option but to sell to you. At that |
| are often lien-free properties. What does that leave | | | | point, you're their knight in shining armor! |