Tax Deed Sales
For those looking to buy their first home or to invest in real estate, these individuals may question whether or not attending tax deed foreclosure sales are the best way to get a home at a discount. The truth is that tax deed foreclosure sales are rarely the best way to get a cheap home. There are a number of reasons why buying a home at a tax deed sale is not a best option when it comes to buying a home.
The first problem is that when considering a tax deed sale, you will need to do a great deal of research. In many places, hundreds and thousands of homes may be listed on the list of tax sales that is produced by the county.
When looking for a foreclosed home and you find several properties listed, it will be very expensive to visit each property and check the value of the home you would want to buy. With a list this large, you will find a lot of “garbage” properties are not worth what is owed on the home.
After you have spent a number of hours researching foreclosure homes, you will need to have the finances available to buy the home at the tax deed sale. Do not think the price listed for the property will be the price you will end up paying for the home. The listed amount is actually just a minimum bid.
When you go to the tax deed sale you will be surrounded by many other prospective bidders with extensive financial resources. They usually bid on the home beyond the discounted rate and near what the home would sell at retail.
The last thing to be aware of when it comes to tax deed foreclosure sales is that the majority of homes that you buy at tax deed foreclosures do not include the title when you purchase the home. Most of the time any liens or mortgages are typically wiped out while going through the tax sale process but companies that hold the title to the home want the new homeowner to obtain a “quiet title”.
Getting a quiet title may take up to four months to get and the cost ranges from five hundred to two thousand dollars. There are many times while going through the quiet title process where parties interested in the house were not given sufficient notice about the tax sale and these parties will appear and try to invalidate your deed. This is why title companies need the quiet title process done quickly and successfully. Title companies are frequently burned many times by insuring the tax deeds that have been bought at auction.
The main way to successfully buy a cheap home at a tax deed sale is if an individual overlooks a valuable home on the listing and doesn’t bid on it or you go to an auction and no one else show up at the auction. This of course will almost never be the case so it is imperative to research everything about tax deed foreclosures in case you are fortunate to get a good deal.