Houses With Unpaid character Taxes – A rare Investing Opportunity
If you’ve been investing in mortgage pre-foreclosure homes with little success, you may want to look into switching up your game plan and investing in houses with unpaid character taxes instead. Why? One simple reason: they rarely, if ever, are encumbered by a mortgage.
Houses with unpaid character taxes that make it all the way to tax sale have a few things in shared.
First of all, they’ve had abundant opportunity to be “saved” by their mortgage companies. typically, if a house has unpaid character taxes and is in danger of being sold at tax sale, the mortgage company will come in and pay the taxes to avoid losing their stake in the character. More often than that, mortgage payments include character tax- so those houses would never end up with unpaid character taxes.
Secondly, the taxes have been unpaid for quite some time. Although there is state code governing how long a character 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 character will be auctioned off. (Sometimes, they aren’t already aware that they own the character at all!)
Finally, the most important thing they have in shared is that they are a lucrative investment opportunity. While investing at the actual tax sale isn’t always a great way to get a deal on houses with unpaid character taxes, due to the competition from other bidders, you can often get these similarities directly from their indigent or uninterested owners for token amounts. They meaningful is to contact them just before the character is going to be lost forever, when they’ve got nothing to lose by selling to you.