Everyone looks out for opportunities to make big bucks in short time and small investments. If you are looking for some options to make big bucks, you should consider investing in properties that are up for sale for their delinquent property taxes. If you are still not clear with this let’s take an example. As we know, everyone needs to pay property taxes on land or on home or on both though there are some tax relief options to reduce the amount. In case, a particular person couldn’t or doesn’t pay those taxes, taxing authority like IRS will make the property available to numerous investors to recover the tax amount. It is a legal move and authorized by US government.
Taxing authorities vary from state to state. However, in most cases, it is the assessor’s office of the county who is the in charge of collecting these taxes. In other words, if you want to buy low-cost yet valuable properties, assessor’s office need to be your point of contact. If the property owner cannot pay or refuses to pay the taxes, counties are authorized to sell the outstanding taxes to an investor and tax lien certificate will be issued to him/her. If the owner does not redeem the lien, county has the right to foreclose on the lien. The property can also be sold at the public auction which is known as tax deed sale or tax sale.
No matter in what ways the property is going to be treated, in an even where property owner is forfeiting the property as he/she is not paying the taxes. Now you know what happen when a property owner cannot pay the taxes. But how can you make profit by buying these kinds of properties. First of all, you should attend the tax lien auction. With the advancement in technology, now you can get this information online as well. Information about the tax liens is also available with the newspapers and various journals. In the tax lien auctions, you can buy tax lien certificates. Once you get the certificate, you get the ability to charge higher interest rates until tax debt is cleared. You can also foreclose on the property and become the owner of the property for the back taxes you paid and the foreclosure amount which will be a nominal fee.
If you want to get the property at much cheaper price than its real market value, you must attend Tax deed auction or tax sale so that you can buy the property directly from the county. Approaching home owner is another good alternate to get property at a cheaper price. You should approach the home owner prior to auction. This will save the property owner fro foreclosure proceedings.