To everyone here at GA. Thanks for the encouragement.
🏡 Local WIN 🏘️
For the past couple of years I have been working on paying off my mortgage and being debt free. My wife and I both wanted to do this. It was not always easy but we keep plugging away. Today was my last mortgage payment. We now own our house free and clear. We have no other debt.
For anyone reading this that is still on the path to being debt free. Don't give up. Is it hard at times but no matter what anybody tells you it is worth it.
No one knows what the future holds (Until the real President is back in office). We are very concerned that inflation is going to get really bad. Hopefully not having debt will make it easier to deal with rising prices.
Anyway once again. Thanks everybody.
If you put enough down when buying the house, the bank won't require you to escrow the taxes and property insurance.
When you say you've bought tax liens and deeds, do you mean you've literally acquired houses (or real estate of some sort) just by paying the back taxes?
No, I've bought them at auction where the starting bid was the back taxes. Some counties handle the foreclosure prior to the auction and some counties require you to foreclose and still others require a time period before you can take possession. But I have seen many homes that were 'free and clear' be lost to taxes so I am just trying to spread the word that free and clear doesn't mean free and clear.
Oh, thank you. I wondered how it worked. So let's say someone is behind $10,000 on their property taxes. The county sets up a sale and you come to bid. The bidding starts at $10,000. And it could go up quite a bit more than that. So let's say the house finally 'sells' for $70,000. Who gets the $60,000 profit? Does that go to the owners who are losing their house? Or does the county just keep it?
I have heard that even if you do acquire a house that way, the people who lost it can may be able to get it back. So like you said, some counties require a time period before possession. Is that because the original owner is given a chance to get it back? And if so, how does that effect you? Do you get the money you invested, back? Thanks for your help. I've always wondered about things like this and adverse possession, squatting, etc. Some things like those just mentioned, seem so weird and unfair. Appreciate your explanations.
No problem. Many of the answers depend entirely on the county you live in. For instance, in Oakland County Michigan, the county treasurer keeps the profit on the auction and the auction company adds a 10% buyer's premium to the final bid price. In Georgia there is a one year 'right of redemption' after the auction in which the owner can pay back all the taxes plus the overage with a premium on top for the buyer (which would be their profit instead of getting ownership of the property). New Jersey has a hybrid process and West Virginia has a different process and on and on it goes. The place to start for answers is your local county Treasurer's Office. They can provide the information on the tax auction process, a date for the upcoming auction and a list of properties to be auctioned off. Many counties have moved to online auctions but the real gold is the in-person only auctions, not many bidders at those.
Interesting about the in-person auctions. Do you also go to regular real estate auctions? (like with a real estate auctioneer - as opposed to the county courthouse.) You seem to be well versed and your operation is widespread!! Lol. That could be taxing (as in tiring, not taxes.) I remember reading in Rich Dad Poor Dad that Robert Kyiosaki would go to different states to buy when he found a good deal.
Thanks for the info about the Treasurer's office. I can't believe they keep the profit, though! Well, I can believe it, but it seems wrong. And it sounds like in Georgia, you could buy a place, fix it up and even move into it and then still be booted out. So I'm wondering what people do there. Maybe just buy it and rent it if it's livable. Interesting that things are so different from state to state. Is this your full time income gig? It sounds like it would take a lot of time to learn all these details. I suppose you could still do it 'on the side,' but it would be great if you could do it full time. Thanks. It's fun talking to you about this.