So you’re looking for a smarter way to buy a property, either to live in or to invest in. Congratulation. If you’re reading this article, it means you’ve moved from the “thinking” stage to the “doing” stage, and most people never get there. There are plenty of deals to be had, if you’re willing to do a little research.
You’ve probably heard that tax foreclosure property is a great investment, and you haven’t been misled; but now you will learn how to buy a house with tax arrears, very cheaply, without having to face the headache of competition. If you’re looking for a cheap property to buy for yourself, stay tuned too – this technique will work even better if you are not an investor!
Right now, throw away everything you’ve heard or read about tax sales. If you’re smart, you’ll quickly realize that you can’t compete with all the big companies that will rush to bid against you in the sale. Tax selling, whether for deeds or liens, is no place for the savvy investor in today’s market. There’s a much better way for you to buy a home for back taxes: from the delinquent homeowner himself.
Most people overlook this strategy, which is why you will hardly find any competition. If you’ve ever tried to buy directly from a landlord in a mortgage foreclosure, then you understand why this is so unattractive to failed mortgage foreclosure investors. Often you can’t convince these landlords to remember you for life – and if you get a deal, then you have to deal with the mortgage, the second mortgage, the back bills, the back taxes; but when you’re buying a house for back taxes, that’s a different animal.
Because these houses almost never have a mortgage!
That’s right. The mortgage company takes care of all the tax issues to avoid losing their interest in the property. So you’ll find that almost all of these homes are mortgage free, otherwise they wouldn’t be selling for taxes in the first place.
Another thing that might seem counterintuitive is that landlords almost always return your calls, and when they do, they’re eager to make a deal with you to sell you, and for cheap, just to get the property. out of their name! Indeed, as you will see, many owners of these properties are not unlucky people and lose their homes. These are people who have inherited property, or absentee owners, who are fed up with this economy, and have actually let the property go on sale for tax purposes, just to get rid of it .
This goldmine of landlords can be hard to come by, making them great prospects, and you’ll be pleasantly surprised to find out how many of these landlords are willing to hand over their deed to you for a few hundred dollars, just because ‘they’d rather see it go to a nice little investor like you, than see it go to government. If you are looking to buy a property for yourself to live in? Even better. Expect to find owners even more enthusiastic about giving it to you – for next to nothing.