| If you've decided to get into the foreclosure investing | | | | frequently the back taxes owed are the only |
| business, good for you. Foreclosures are at an all-time | | | | encumbrance on these properties; houses without |
| high due to the recent economic downturn, and the | | | | mortgages are also often houses without any other |
| opportunity for investing has never before been quite | | | | liens. |
| what it is right now. The question is, what route will you | | | | So what now? How to get this property? |
| take- buying homes for back taxes, or investing in | | | | You will probably have little success investing at the |
| mortgage foreclosures? | | | | actual tax deed/lien sale. Other full-time tax property |
| The smart answer is to invest in tax foreclosure | | | | investment companies will have researched the best |
| property, and here's why. | | | | properties and will be willing to make a smaller return |
| While mortgage foreclosure investing used to be a | | | | on their investment that you are, so you'll be outbid |
| lucrative venture, recent times are finding more and | | | | almost every time. This doesn't mean you can't invest |
| more homeowners upside-down in their mortgages. | | | | in tax property-- you just have to be a little smarter |
| When home values dropped, so did the equity these | | | | about it. |
| people had in their homes. So today, finding a | | | | Why not attempt to buy the properties directly from |
| mortgage foreclosure with equity to go after is a rare | | | | the distressed owner, instead? These owners are |
| thing- not to mention the field has become crowded | | | | often ready to get out from under the tax burden and |
| with other investors as of late. | | | | would rather sell to you than see their home lost to the |
| Homes with back taxes owed, on the other hand, | | | | government. Many times you will find that these |
| almost never have a mortgage and almost always | | | | owners have already resigned themselves to losing |
| have a ton of equity. Why? Because at tax | | | | the property and getting nothing from it, or just no |
| foreclosure sale, mortgages are wiped out- so | | | | longer care what happens to the property (we often |
| mortgage companies make sure to pay the delinquent | | | | see this in the case of an absentee owner or failed |
| taxes on a property before it ever makes it to tax | | | | landlord). These owners are motivated to sell, and to |
| sale, leaving you with properties that have no | | | | sell for cheap. |
| mortgage by the time the sale rolls around. Also, | | | | |