Author Topic: Tax Foreclosure -  (Read 1605 times)

SofiaBourbon

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Tax Foreclosure -
« on: December 18, 2013, 01:00:52 PM »
 How does a Tax Foreclosure work if the person whose property is being  tax foreclosed on also has a bank loan?
Do you recommend books and/or Links for me to learn on how to buy properties for rent or resale? What other fees are added when buying a foreclosure property? Should a get an agent?
How do you do it?

Thank  you!

arebelspy

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Re: Tax Foreclosure -
« Reply #1 on: December 18, 2013, 01:45:05 PM »
How does a Tax Foreclosure work if the person whose property is being  tax foreclosed on also has a bank loan?

It depends on the state/county/whatever, and what priority lien and such.  Usually the lien isn't wiped, and you now either start paying the loan on it, or risk them foreclosing on you.

Do you recommend books and/or Links for me to learn on how to buy properties for rent or resale?

Yes, I absolutely do.

Don't get into real estate investing without lots, and lots, and LOTS of reading.

(More on this below.)

What other fees are added when buying a foreclosure property?

It will vary based on the transaction type.  A "foreclosure property" doesn't necessarily mean at the auction, often people refer to REOs by that as well.  You will need to know more about what specifically you are trying to do to answer that.

Should a get an agent?

Again, depends on the transaction type, your level of experience and knowledge, and what you're trying to accomplish.

How do you do it?

And once more, it depends.  I've done rehabs, buy and holds, notes, auctions, owner financing, etc.  Each one was different.

I mean no offense with this, but your questions are very, very basic.  Try not to get into anything until you have acquired a lot more knowledge.  Start by searching these forums for real estate book recommendations.  There's a few threads with recommendations.  Then start going to biggerpockets.com and reading their forums on a regular basis.

Good luck!
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
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SofiaBourbon

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Re: Tax Foreclosure -
« Reply #2 on: December 18, 2013, 04:19:10 PM »
Hi arebelspy,

I just started to look into this as a possible side income option, I have a lot to learn. Thank you for your reply.   

arebelspy

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Re: Tax Foreclosure -
« Reply #3 on: December 18, 2013, 04:27:14 PM »
I just started to look into this as a possible side income option, I have a lot to learn. Thank you for your reply.

It's a great way to make money.

But it's not passive.  It takes a lot of work.

And usually it takes money and/or credit.  Try not to buy into the hype of people selling telling you otherwise.

It's something to learn a lot about, ease into slowly, and build wealth from, over a decade or longer.  It's not something you will make a lot of money on in a year or two.

Best of luck, let us know if you have any followup questions once you read those books!
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.