Anyone heard of this?

iVillage Member
Registered: 11-04-2004
Anyone heard of this?
4
Sun, 06-05-2005 - 7:47am
I read recently that you can "purchase" people's delinquent property taxes. Safe investment, because you pay directly to the state gov. When the property owners pay, the penalty fine goes to you (usually about 18-24%)in the from of a check directly from the government. If they don't pay within a certain amount of time, the property is forclosed and it becomes yours. Anyone heard of this? Sounds like a good, safe return on your money. (I personally don't have any money to invest yet, but I hope to by next year)
Has anyone tried this or have you heard of it??
Avatar for mrslove2000
iVillage Member
Registered: 03-26-2003
Sun, 06-05-2005 - 11:25am

In Texas, I have heard of something similar to that. At the local courthouse, public records will list which properties are delinquent for taxes. You can "purchase" the property by paying those taxes and obtain a "sherrif's deed". However, the previous "OWNER" has a certain amount of time to make good on the delinquent amount and recieve the property back. If they don't, the properties is yours to keep. I have not done this myself (can't seem to get to the courthouse before the close, LOL) however, I might look into it when I am on vacation.

Susan

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iVillage Member
Registered: 10-25-1999
Sun, 06-05-2005 - 4:52pm
I've heard of that in across the river from me in Council Bluffs, Ia. One of my co-workers knows a lady who has almost a dozen rental properties around town that she got this way. She says that 50% of the time the ower pays the taxes & keeps the house. When I have the $ I'm going to find out if that exists on my side of the river.
iVillage Member
Registered: 11-04-2004
Mon, 06-06-2005 - 8:04am
As I understand it, most people end up paying their taxes, but they owe a huge penalty. You as the investor keep the penalty money along with the money you invested to begin with. Sounds pretty safe, yet here I am still in debt from other "money-making" schemes.
Avatar for thefallenangel
iVillage Member
Registered: 04-04-2003
Mon, 06-06-2005 - 10:09am

I used to work for a newspaper in Florida. Every year we would print a special section of delinquent property taxes and all the information (including who owns the property, where it is, and what is owed). We we constantly maintaining our records as to who has paid, and which were bought off.

I learned from the legal department that this is a pretty safe way to make a little money (some of the properties owed as little as $200 and some as high as $20,000). They did advise me though to check out the property before I paid the taxes on it. You don't want to end up with a dump and lots of repair problems. Also, if you do end up with the property, and are unable to sell or rent it, you are responsible for future taxes and any zoning, or other regulations that must be upkept on any property.

Basically you pay the money, and the property owner has the time they would normally have to pay off the taxes (they were printed in April I believe and the taxes were due Dec 31). If they don't, the property is yours. Most of the time, where I was, the money was paid and you simply got your money back, with the penalty.

Seemed safe, many people at the newspaper participated. The process and details may vary state to state though.

Angel