| This is a common question with a murky answer. It | | | | in your state, however, you probably will hear about it |
| really depends on where you live. | | | | long before you ask this question. |
| Most states' code spells out exactly how long an | | | | If you're an investor, buying tax sale property from |
| owner can be delinquent before his property will get | | | | these owners isn't just a great opportunity for you - it's |
| sold at tax sale. This can be anywhere from one to | | | | also something they desperately need. Forget buying |
| five years, or longer. Then, once the owner's property | | | | at tax sale. Wait until the end of the redemption period |
| is sold at tax sale, he usually has at least another year | | | | and contact the owners directly. Those that haven't |
| before the tax sale buyer can foreclose on the | | | | been able to pay off their taxes by then are out of |
| property - even longer in many states where liens are | | | | luck, so if you want to make some very good deals, |
| sold instead of the actual deed to the property. | | | | this also helps these owners at least get something |
| Other factors can come into play as well that affect | | | | out of their property. |
| the timing. Recently in Indiana, for example, the state | | | | If you're low on cash, offer $200 for their deed, plus a |
| ordered that a lot of property be reassessed that | | | | portion of whatever you're able to make selling the |
| hadn't been valued (for tax purposes) in a very long | | | | property. Then you can either flip to another investor |
| time. That resulted in a lot of people's tax bills going | | | | quickly by pricing well below market value, or pay off |
| through the roof, and them being unable to pay (Gary, | | | | the taxes yourself and sell for retail. Or, if you find a |
| IN is a prime example). | | | | good situation, buy the deed for $200 and rent the |
| In this case, there was a lot of protesting and | | | | property back to the owner. |
| petitioning for relief, and tax sales that normally would | | | | Either way, you'll be able to invest for $200 (or less), |
| have occurred didn't. In 2009, tax sale for properties | | | | and both you and the owner profit from what |
| with delinquent taxes as far back as the year 2000 | | | | otherwise is a fairly miserable situation. |
| occurred. This isn't super uncommon - if it's happening | | | | |