Curious if anyone has ever bought any property at tax foreclosure auctions? The next one for my county won't be until August 2014, but they just put notice in the paper the other day for everyone in my county that if they don't pay up by March, they'll lose their property... and there's at least three newspaper pages full of properties (probably a few hundred).... we have everything from multi-hundred thousand dollar properties getting notice to Cleetus's trashed out trailer and everything in-between.

bump... anyone?

There was something about this.... where you had to be careful, as there is a chance the owners could come back and pay the taxes at the last minute, or even after the sale. But I am only 50/50 on that info. You could talk to the city/county about the sale and ask them the procedure.

No, but I've been to several--and left my checkbook at home each time.
Each has been quite sad.
Just can't bring myself to profit from another's "misfortune".

In Iowa, once a tax sale has been completed, the delinquent tax payer has 3 tax periods (18 months) to pay up before they officially lose their property. When they do pay up, they are assessed a 20% penalty for being late.

On the flip side of this, the tax lien purchaser has to make 3 consecutive tax period payments before they officially are able to take possession of the property. If the delinquent tax payer makes good on his past due taxes within the 18 month period, the 20% penalty is awarded to the lien purchaser, in addition to whatever they've paid in to the county. In my experience, this is why people buy tax liens. It isn't that they want a property, it's just a pretty good investment that pays pretty well in a short turn around.

Hope that made sense.

[This message has been edited by LAMBO (edited 10-30-2013).]

quote Originally posted by maryjane: No, but I've been to several--and left my checkbook at home each time. Each has been quite sad. Just can't bring myself to profit from another's "misfortune".

All profit is at another's misfortune.
It is my misfortune to be hungry when I decide to go to Taco Bell and they make profit on my misfortune. You could sell them your tax sale price at a discount.
It is sad to see poor people buy new cars when they are really just a payment from losing it. I have been in the position to evict people that had already lost their butt, it is all sad.

Here you have 12 months to pay up after the property is sold at auction.

During that period the new "owner" cannot step onto the property for any reason, it's basically abandoned and the local thugs have a go at destroying it for a year after the auction.

There is also no looking at the property to see what kind of shape it's in.

That's here, your laws probably vary.

Brad

quote Originally posted by FriendGregory: All profit is at another's misfortune. It is my misfortune to be hungry when I decide to go to Taco Bell and they make profit on my misfortune. You could sell them your tax sale price at a discount. It is sad to see poor people buy new cars when they are really just a payment from losing it. I have been in the position to evict people that had already lost their butt, it is all sad.

Last I heard, you taking in nutrients wasn't really much in the way of a choice--eating is normally considered a neccessity if you want to stay on top of the ground instead of underneath it.

It is my choice, that instead of staying with Mom or other family where I could have a meal for free or, stopped at the grocery store and bought oatmeal that would feed me 4 days for 3$, I decided that I am going to be taken advantage of. Why do I keep making these choices.

Yes, I know that crops fail and people lose their jobs but, the risk / benefit of owning stuff is usually pretty clear. I sure hope my choices do not come back to bite me.

In my county, you have two years, after those two years, if you don't make a payment plan, then your property is seized in march... there is no redemption period. The county "takes" it until August and then its sold at auction... within those 30 days following auction, the new owner will have to get a court eviction and have the Sheriff take the people off the property if they haven't left.

quote Originally posted by Fats: Here you have 12 months to pay up after the property is sold at auction. During that period the new "owner" cannot step onto the property for any reason, it's basically abandoned and the local thugs have a go at destroying it for a year after the auction. There is also no looking at the property to see what kind of shape it's in. That's here, your laws probably vary. Brad

Yep. And I thought that was everywhere. Foreclosures are awful buys in Missouri. Looks like they're not as terrible elsewhere.

quote Originally posted by theBDub: Yep. And I thought that was everywhere. Foreclosures are awful buys in Missouri. Looks like they're not as terrible elsewhere.

Tax lien sales and foreclosures are completely different monsters. Either one, you can lose an incredible amount of equity when it is sold against your wishes but, foreclosures may have the large debts. Taxes, even with penalties, I do not think the cost is high. They are only high when you can not afford them.
I do not know if the tax lien sale invalidates mortgage and construction liens so, I am unsure of the risk.

The other factor that hasnt been mentioned is you never know what kind of crazies property you just bought.....is he going to come back armed to the teeth on a vendeta somewhere down the road after stewing in anger for weeks/ months/ years ?