How Can I Buy Homes?
According to RealtyTrac, it is possible to find a fantastic deal through a tax foreclosure sale if you’re willing to put in the time to perform the study. A tax foreclosure sale takes place when a government taxing body puts a tax lien on a property for unpaid taxes. Investors in real estate frequently are attracted to tax lien foreclosures because of the prospect of a higher rate of return on the investment. This process isn’t any easy one.
Find a house in foreclosure by searching public records. You can also check national databases of auction properties on the internet. Search for homes which have liens placed on these for outstanding real estate taxes. Check to find out whether other creditors have placed liens against your property. Go to the county recorder’s office to research whether there are additional exemptions on the property, as well as how much money is still owed on the mortgage. If you get the property at auction, you will be responsible for satisfying any other liens placed against your property. Certain liens may take priority over the real estate real estate tax lien. Conduct a title search prior to the auction date to help save you a few unidentified woes should you’re the winning bidder.
Check evaluated values and sales prices of comparable properties situated in precisely the exact same neighborhood for the past three weeks; this will give you an idea of the speed of property appreciation in that area. Determine how much you would like to bid at the auction as soon as you collect all the relevant information. Describe how much an additional investment it will take to increase the house’s value. RealtyTrac points out a fair bid is usually about 20 percent below the property’s full market value, although sometimes an investor could find an even better deal.
Drive by the property to examine its exterior condition and the type of neighborhood in which it is situated. Even if you can’t get inside to inspect the house, take a careful look at the exterior and attempt to estimate the cost of any obvious repairs that might be needed. Not all houses going on the auction block schedule an open house for potential bidders to inspect the house, but, according to ForeclosureRadar.com, the exterior appearance of a residence is generally a pretty accurate indication of what you may discover on the inside; a home which appears well-cared-for on the exterior is usually well-maintained inside.
Speak with your lender regarding the amount of equity you’ve got in your existing home. You will qualify to have a loan of charge to purchase a property foreclosure. Another advantage of obtaining a line of credit based on the equity you’ve got in your primary home is that you might not need to think of a down payment to acquire the loan.
Find out when and where the sale will happen. Usually, a tax lien sale is held by public auction at the courthouse in the county in which the land is situated; sometimes the auction occurs on the land itself.
Find out more about the bidding process for tax lien in your area, since the process varies from state to state. Sometimes, a lien must bring the complete amount he plans to bid on the auction, either in cash or in the shape of a cashier’s check. Foreclosure laws in certain states only require a bidder to cover 10 percent of the bid on the day of the auction, and then pay the remainder within a specified time period. Speak to a lawyer or real estate agent in the area to find out more about foreclosure proceedings in your state.