Foreclosure then tax sale, I want to buy this property!; opinions please

**dac2828** · 06-22-2009, 07:56 PM

Ok, I bought a house about a year ago and the seller also had 10 acres bordering the property for sale which I didn't buy.

Now, those 10 acres were foreclosed on, and the word is they sold for about 1/10th of what the bought them for at a tax sale. They are still on the market for 1/2 the price of what they bought them for.

Can someone explain to me how this works? The person who bid at the tax sale will still have to go through the lender to get the deed, correct?

The owners who foreclosed purchased for $90k, short sale has been on the market for $50k, and it sold at the county tax sale for $7500. The taxes owed are only $200. This sounds crazy right? I think we're experiencing the lightning economic model, this sounds like were headed for a great depression, before WW2 it lasted 12 years right?

Sorry, off subject. I know the owners have 4 months to pay the $200 in back taxes to reclaim the property. What do you suggest I do to try to get this property. I want to pay around $15k for it. Should I make the tax payment so the person who bid $7500 doesn't get it then try to negotiate with the lender(countrywide). Or, possible try to win it at the next tax sale in a year.

I'm not understanding this, how can the county sell the property for only $7500, when the lender has $90k into it, and the taxes owed are only $200.

Who should I call to get this property. I'm thinking call the lender and negotiate(if countrywide does) then pay the $200, can I do that?

Help!

**RedCarpetSchool** · 06-23-2009, 11:16 PM

Did deeper there has to be more tax owed. You may need to check if it is a federal tax lein not just property taxes owed. Call a Title company and have them run a check for federal tax leins against the owners name and that property. Thats my sugestion.

**Blowdata4u** · 06-24-2009, 02:07 AM

yes
you are right...

**tucsonhomes** · 06-27-2009, 12:00 PM

You didn't mention where you are.

Tax sales in most areas, simply are the govenment simply selling their tax lien position. These lien positions often have stautory rates of return (subject to auction) and can take years to "foreclose".

I suspect, the lender who foreclosed the loan owns the property and can sell it freely. The buyer (normally) will get title insurance which will insure that any liens have been paid at or before the closing.

**craig** · 07-01-2009, 06:00 PM

If the property went for $7500 at the tax sale that is was is owe to the govt. not $200. There has to be some other govt. lien on the property.
Taxes are in the first lien position. The govt. of course always want their money first. Depending on where the property is at there is a time period that the taxes can be paid off to prevent transfer of the property to the winning tax sale bidders. It is rare that the bidder actually acquires the property.

You can try to contact the lender to see if you are able to aquire the property from them. I'm thinking the chances are slim but you never know.

**wilson9975** · 07-08-2009, 11:42 PM

Hi,

Here is some information on tax sale properties.

Auctions are generally organized for the investors where they have to bid and invest in the Tax liens. This trend is followed in many states, countries. The investor who wins the bidding receives a Tax lien certificate of that particular property issued from the state only after paying the amount that is required. Following this process is the prearranged redemption period, in which the original homeowner of the property gets an equal chance to repay the amount of Tax lien once again together with the interest and get back his property or home. From this, the Investor who has invested in the Tax lien makes money from the interest that has been paid. In case the period of redemption is over and the original owner of the property or home has yet not paid the tax liens, then the investor can begin with the process of foreclosure.