Thread: A step by step guide to buying tax sale properties

1. Step 1
   Contact the treasurer's office in county in which the tax sale will take place. Upcoming sales are published as a matter of legal record in a newspaper one or more times before the sale takes place, but the publication may not identify the terms under which the property will sell and whether the original owner has the right of redemption. Failure to determine this before bidding may result ownership of a property that you may not sell, remodel or move into until a redemption period passes.
2. Step 2
   Make an appointment to examine the property, if possible. One of the reasons some real estate sells cheaply is because potential bidders may not view the inside of the structure before the sale. This is especially true if the sale requires a bank foreclosure and the residents are still living in the structure. Typically, bidders who can view only the exterior of a property bid much lower because the interior may be badly damaged.
3. Step 3
   Call the county appraiser's office and ask what value the county holds for the home. While this is not fair market value, it may give you an idea of what the home would sell for later.
4. Step 4
   Arrange for financing before the tax sale with your bank. Depending upon the regulations in your county, a letter of qualification from your bank, stating that you are approved to purchase the property up to a certain dollar amount, is required before you can bid. Other counties require a bank representative to be present during the auction and to write the check. If you have cash, you can bypass those steps.
5. Step 5
   Start the bid at the amount due in back taxes if there is a minimum bid on the property. The auctioneer, usually a licensed real estate broker, will announce the terms of the auction before the bidding begins. In some jurisdictions, the property will not be sold for less than the amount of back taxes.
6. Step 6
   Take possession of the property if you're the high bidder. By law, the residents must vacate when the property is not subject to the redemption period and you have legally purchased it. The sheriff will accompany you and evict the residents--forcibly if necessary--or you can handle the process by yourself. You may decide to allow them a reasonable period to relocate.