| Can you buy a foreclosed home for just the back | | | | the taxes, but can't; and those who decided to just let |
| taxes? The answer: yes, and no. If you are wondering | | | | the property go and forget about it. |
| if it's possible to go to the tax sale auction and buy a | | | | You can make some great deals with the first group. |
| foreclosed home for just the back taxes, the answer | | | | You can often get their property for $100 for the |
| is no. Competition at tax sale has gotten too fierce for | | | | deed, along with an agreement to split proceeds on |
| that. But there is another way to buy a foreclosed | | | | whatever you're able to get for the property when |
| home, and often you can get it for just the back taxes, | | | | you sell. But if you want to buy and hold property, the |
| if you play your cards right. | | | | second group will be your gold mine. |
| To get properties outside of tax sale, you'll have to | | | | Ask them, since they aren't planning to redeem the |
| approach the owners - but timing here is key. Many | | | | property, if they would consider deeding the property |
| investors make the mistake of trying to buy property | | | | over to you. Explain you're a first time real estate |
| from the owner before the tax sale, when he/she is | | | | buyer and tell them you'd love to see if you could do |
| still trying to find a way to buy the taxes. The secret | | | | something with the property. They may want a deal |
| here is to wait until after the tax sale, until almost the | | | | like the above owners, for a percentage; but, in many |
| end of the grace period (1 year, in most places), and | | | | cases, they're glad to just get the deed out of their |
| then contact the owners who still haven't redeemed | | | | name and move on. Offer them $100 for their time to |
| their property. | | | | sign the deeds. Your success rate will be through the |
| You're probably catching on right about now - these | | | | roof. |
| owners are about to permanently lose their homes, | | | | Once you have the deed, in either case, you can pay |
| and that means it's now or never for them to sell. This | | | | off the back taxes yourself and sell for retail value, or |
| is when you can buy a foreclosed home for just the | | | | even better, sell to someone else for far below retail |
| back taxes, plus a few hundred dollars. Here's how | | | | value, ensuring a quick sale, and let them deal with the |
| you do that. | | | | taxes. Then, you just walk away with your (hopefully |
| First, contact the owners and talk to them. They won't | | | | many thousands of dollars in) profits having never |
| bite; in fact, they're often quite friendly. Find out what | | | | invested more than you'd spend on an average car |
| they're planning to do about the tax situation. You'll find | | | | repair. |
| they fall into two groups: those who wanted to pay | | | | |