I remember years back in Real Estate classes hearing about these and thinking they were interesting but never looked into them. They may vary how they work by state I'm not sure but in my state at least it works like this.
People behind in real estate taxes whether homeowners or developers or whoever their properties are auctioned. The buyers do not bid a price but bid an interest rate between 1% and 18%. If nobody bids the government takes over the property at 18%. If I bid 12% and other bid say 15% I win.
The buyer then has the next I believe 2 years to pay me back the back taxes plus interst. If they pay me back I get my money back plus interst. If they don't pay me back I have a lien and then take the property.
Anyone have any experience with this? What I'm most curious about is does the owner of the property pay the county who in turn pays me or am I responsible for trying to collect? Also at the end of the process how complicated and costly is it for me to turn my lien into me owning the property? ANything else of interest from anyone with experience with these I'd love to know.
People behind in real estate taxes whether homeowners or developers or whoever their properties are auctioned. The buyers do not bid a price but bid an interest rate between 1% and 18%. If nobody bids the government takes over the property at 18%. If I bid 12% and other bid say 15% I win.
The buyer then has the next I believe 2 years to pay me back the back taxes plus interst. If they pay me back I get my money back plus interst. If they don't pay me back I have a lien and then take the property.
Anyone have any experience with this? What I'm most curious about is does the owner of the property pay the county who in turn pays me or am I responsible for trying to collect? Also at the end of the process how complicated and costly is it for me to turn my lien into me owning the property? ANything else of interest from anyone with experience with these I'd love to know.