Tax foreclosures are something that a lot of people like investing in because they are a good way to get a property for a cheap price. Unfortunately, there are things that people who have never purchased a tax foreclosure may not know about because they haven’t done their research. Below are three mistakes that people often make when purchasing tax foreclosures for the first time.
1. Not Paying Balance in 30 Days
The person who wins might lose the deposit if they don’t pay their balance in 30 days. There are some circumstances where the bidder is able to petition for another chance. But it’s nothing that you should count on, because it doesn’t always happen.
2. Not Checking for Excess Gas, Tax or Water Liens
Your bid might not cover all liens. Sheriffs often say that its being sold ‘free & clear”. However, it’s not always so. It’s something that you should look into before bidding.
3. Not Understanding How Hard It Is to Remove an Occupant
When someone’s property is being sold for taxes, it can be very time-consuming and expensive to remove them. It can take anywhere from 30 days – a year based on circumstances.
If you have done your due diligence and understand the process of tax foreclosures, it’s a good investment. But otherwise, you may be in for a big shock. Remember these four mistakes when it comes to tax foreclosures so that you can avoid making them. This will help you have a positive experience.
