| An interesting question often asked in the real estate | | | | lose the deed when someone, as above, comes in to |
| investing game is, "who has the right to redeem | | | | redeem it. |
| property sold for back taxes?" It's a confusing | | | | A better way to get this property is to follow the |
| question, but one with a simple answer. | | | | second option: go directly to the owners - but wait until |
| To redeem property sold for back taxes, you don't | | | | almost the end of the redemption period. This will save |
| even have to have a stake in the property. For | | | | you the trouble of messing with properties someone |
| example, if your mother's property was "sold" at tax | | | | else is likely to redeem, as state above. |
| sale, you could march right on down to the tax sale | | | | These owners will need to sell very quickly in order to |
| office and plunk down the cash, thereby redeeming | | | | avoid government foreclosure. You can offer them a |
| her property for her. | | | | few hundred dollars for their deed. Often that will be |
| Also, banks and other lienholders often redeem | | | | enough to get you some property. You can offer |
| property sold for back taxes. If they don't, they'll lose all | | | | other owners (of nicer properties) a share of |
| right to foreclose on the property once the redemption | | | | whatever you're able to sell it for. You can also buy |
| period expires. That's why most houses that make it all | | | | the deed for $200 and rent it back to the owner - the |
| the way through the tax foreclosure process rarely | | | | possibilities are endless. |
| have a mortgage. | | | | If you want to keep the property, you'll have to pay off |
| If what you're really wondering is if you can own | | | | the taxes. If you don't have the money to pay off the |
| someone's property by paying off their taxes, that's a | | | | taxes, you can flip quickly to another investor by pricing |
| different story. The answer to that question is also a | | | | the property far below market value - and then let the |
| bit complicated. | | | | new owner deal with the taxes. |
| If you want to buy a property by paying off the taxes, | | | | Either way, you're making a nice profit for yourself off |
| you can do it one of two ways: bid on it at the tax | | | | of an investment of $200, and helping the owner avoid |
| sale, or buy it directly from the owners. Bidding at tax | | | | losing all his equity by helping him out of the situation. |
| sale is bad. You will end up paying too much for a | | | | And with the number of foreclosures happening right |
| property you can't inspect, will have to pay for the | | | | now, this is a great time to break into the industry, |
| entire bid in cash at the auction, and then probably will | | | | even if you've only got $500 to your name. |