Tax Foreclosure Auctions
November 27th, 2006
Tax Foreclosure Auctions
Question: Has anyone every bought a house form a King County tax foreclosure auction?
I live in Seattle, Wa and wanted to know if anyone has every bought a house form a King County tax foreclosure auction? Or know anything about the process??
Any Information would be a huge help!
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Answer: Many people know that this is one possible way to get a good deal on property especially if they have been watching late night infomercials on TV. I don't know all the details of the process either but there are some things you should be aware of before actually considering it.
The biggest obstacle for most people is that you are required to have the cash to make any such purchase. This is not the place to buy a house if you are planning to use financing.
Some people think that they can pick up this type of property and then quickly turn it over for a big profit. Often, that can be problematic because of the 3 year redemption period during which there is a possibility that the owner will pay what is owed and get back title to the property.
I recently sold a building lot that had been purchased at such a tax sale. The owner decided to list it with me before the end of that three year period. One of the obvious difficulties is that title insurance is prohibitively expensive before that period ends. It would have cost at least 25% of the value of the property to get title insurance.
There was a lot of interest by buyers who wanted the lot but none of them were willing to buy before we got to the end of that redemption period, not even if the transaction was set up to close after the time was up. Then after the redemption period ended, the lot sold very quickly.
If none of these things deter you, go to the courthouse in person. A list of properties being sold will be posted at the courthouse so the best thing is to go there in person to check it out. Of course, you will want to carefully investigate any specific piece of property before considering making a bid at auction because those properties frequently have some huge drawback in terms of location or access etc. Often the properties posted will somehow be saved from the auction block before the sale happens so you can't be sure you will ever have a chance to bid for a particular property.
Orange County Tax Deed Sale, go to www.QueenOfTaxDeeds.com after the video
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Posted in Tax Foreclosures | 
Tags: auction, auctions, Foreclosure, Foreclosure Auctions, government tax foreclosure auctions, realestate, tax, Tax Auctions, Tax Foreclosure
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