One of my neighboring houses is becoming available during the local Tax Sale Auction. Although I have never seen the owners, the house looks well maintained and all houses in the neighborhood are ~500 - 600k.

Owner will keep ownership for twelve months after the auction and will have the opportunity to pay the auction winner the winning bid amount plus 20% to keep the home.

Do any of you have experience with these sales? Do prices usually get close to the actual value of the property…

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Read "house of sand and fog"

helpful

I had a client purchase a tax certificate in a sale like this. The owner redeemed the pro just under the 12 month mark.

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Thanks for your input. 🙄

…even with the risk involved? Success/horror stories? TIA

What state is this in? Are you responsible for the back taxes in addition to the purchase price? Can you find out how much is owed?

Google search also reveals they owe ~$4k in HOA fees.

Fascinating. I doubt they’d be able to buy the house back if it’s gotten to this point. If they don’t vacate after a year on their own do you have to take legal action to get them out?

I agree. Just wondering what those bids will look like. 80% of the properties listed for that day are totally run-down and will probably sell for <$25k.

The potential upside is minimal so you are running all the risk and hopefully break even after this is settled

Do you have experience with it?

Update: I refreshed the list and they paid off the taxes on the final day. Still going to go downtown tomorrow to witness the process. 🙃

Also make sure when you do these types of deals that you have a title search done to make sure that the title is clear of any liens or encumbrances that haven’t been disclosed.

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