If you've been investing in mortgage pre-foreclosure homes with itsybitsy success, you may want to look into switching up your game plan and investing in houses with unpaid property taxes instead. Why? One straightforward reason: they rarely, if ever, are encumbered by a mortgage.
Houses with unpaid property taxes that make it all the way to tax sale have a few things in common.
Loudoun County Property Tax Payment
First of all, they've had ample opportunity to be "saved" by their mortgage companies. Normally, if a house has unpaid property taxes and is in danger of being sold at tax sale, the mortgage enterprise will come in and pay the taxes to avoid losing their stake in the property. More often than that, mortgage payments include property tax- so those houses would never end up with unpaid property taxes.
Secondly, the taxes have been unpaid for quite some time. Although there is state code governing how long a property can go with unpaid taxes before being sold at tax sale, often they go much longer due to the discretion of the county (sheriff, clerk, tax commissioner, etc). Once taxes have gone unpaid for that amount of time, we can guess the owner isn't planning on paying them off, or that they don't have the money, or simply don't have a clue that the property will be auctioned off. (Sometimes, they aren't even aware that they own the property at all!)
Finally, the most foremost thing they have in common is that they are a lucrative speculation opportunity. While investing at the actual tax sale isn't all the time a great way to get a deal on houses with unpaid property taxes, due to the competition from other bidders, you can often get these properties directly from their indigent or uninterested owners for token amounts. They key is to feel them just before the property is going to be lost forever, when they've got nothing to lose by selling to you.
Houses With Unpaid property Taxes - A Unique Investing occasion
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