BUYING TAX SALE PROPERTIES DURING THE POST-AUCTION REDEMPTION PERIOD |
Some states, like my home state, California, wait until the Redemption Period is
over and the delinquent property owner has had every legal opportunity to pay the
back taxes, penalties and interest, before they seize the property and sell
it fee and clear at a public auction. The Minimum Bid is usually the total amount of accumulated taxes due, plus accumulated interest and penalties. In some cases, this means you pay cash and get free and clear title to the property with no warranties. In other cases, the state will finance at least part of the purchase price and carry a mortgage on the property. In some states all existing liens are wiped out once the property goes to auction. In other states, at least some liens - particularly those filed by state or local government agencies - remain with the property and become the Buyer's responsibility. Other states sell the property at the beginning of the Redemption Period. This is just like buying a tax certificate. You are not guaranteed ownership of the property. You are just guaranteed that you will get your money back with interest if you don't get the property. The difference is that you usually get possession of the property during the Redemption Period, even though the delinquent tax payer still has the right to "redeem" the property, or buy it back from you. This means that you can occupy the property, or rent it and collect income, while you wait to see if the delinquent tax payer will redeem it before the Redemption Period expires. TAX SALE RICHES HOME PAGE |