Government Tax Foreclosures for Sale

First of all what are Government Tax Foreclosures? Every home owner has to pay property tax to the Government and the collection agencies do this job at the area level. Default in paying the taxes – property tax, income tax or any other local taxes due to the Government, consecutively for 2 years, give rights to the Government agencies to recover those taxes from the home owner, by attaching them through a Court of Law at the County level.

A formal notice is sent to the home owner to bring the taxes paid uptodate. On failure to respond to the Notice, appropriate Government agencies – local tax collection authorities in the case of property tax and U.S. Internal Revenue Service (IRS) in case of Personal taxes – initiate action to confiscate the property concerned and sell them off through foreclosure auction in the County Court.

In some States like Arizona, instead of auctioning the properties, the Tax Lien Certificates are auctioned and the highest bidder is given those certificates. In real term it means the home owner is indebted to you, rather than the Government, because you pay off the taxes and acquire the certificates. These Tax Lien Certificates will be with you till the home owner redeems them within a prescribed time limit. You can charge interest on the taxes paid by you at 18 percent or more from the home owner and if the property is not redeemed, you get it as your own.

Both buying the property from a Tax Foreclosure sale through public auction and buying a Tax Lien Certificate are having intricate legal consequences. There are no specific listings for Tax Foreclosures for sale as in the case of other foreclosure properties. You can get them free of cost only through the County Clerk. So the very first option is to get a Real Estate Agent in the area, where you wish to buy a Tax Foreclosure for sale property. You have a very large number of them and you can select the person that suits you.

The point is you have to do some grounds work and prepare yourself well to buy Tax Foreclosure for sale properties. First the selection of the property you would like to buy. This can be done online by getting hold of a reliable foreclosure listing agency (of course they will charge you) and tell them to search a suitable Tax Foreclosure Property for you. Complete details about your expectations and budget given to them will narrow the search and save time.

Generally you will have no chance to inspect the property deep inside and can only see the exterior. The condition of the property can be assessed by seeking the advice of a local Value Assessor or the County Tax Assessor, who can furnish you more details to assess the approximate worth of the property concerned. Enquiries with the neighbors also will help in finding about the history of the property.

There are title search companies, who can help you with the information about the liens, debts, and mortgages etc. as also the previous owners of the property, if any. Taking part in the Government Tax Foreclosure for sale properties through public auction will entail your paying the bid amount in full on the same day – either through cash or a cashier’s cheque. Be prepared for that eventuality.

All these preparations will get you enormous savings, in owning the property at the cheapest price you can never imagine. In the present scenario where millions of foreclosure homes are lying for sale, buying a Government Tax Foreclosure For Sale properties are the surest possible way of achieving very good bargains and even if the properties need some fix ups, it is worth it, considering the cheapest sale prices.

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