Many people are interested in investing in tax foreclosures. Tax foreclosures offer a wide variety of properties to choose from and some at very good bargain prices. Tax foreclosures occur when the Internal Revenue Service places a lien over the property due to non-payment of taxes. The Government holds sales of these properties around once to four times a year and with these kinds of foreclosures taking place at a rapid rate as they are presently, they offer the real estate investor an opportunity to make good profits.
An IRS lien takes precedence over any other lien on a property, as with other government agency liens. When there is a tax lien over the mortgage of a property and a default of the mortgage repayments, if the bank repossesses that property and there the bank will have to pay the lien or the IRS will take that property from the bank, or whoever else owns it. Basically there is only one way of escaping tax liens and that is to pay them.
The property and the tax liens are sold on auction and they go to the highest bidder. Bear in mind that the homeowner is not just put out of his house, he is given a redemption period in which to find finance to cover the tax lien, and any outstanding mortgage repayments. Unfortunately for the home owner, this is in most instances not possible, and the court orders that ownerships rights be transferred to the highest bidder at the auction.
Tax foreclosures are said to be a way for investors to purchase property for pennies on the dollar. Although this is not always the case, certainly really good bargains can be found by the investor with a careful eye. The sad state of affairs in the economy today have carried themselves into many peoples homes, and tax foreclosures can be found in all levels of society throughout all US communities. These could ensure that a great home can be found by a careful investor at a very affordable price. Ease of affordability means that you hopefully won't ever find yourself in the position whereby your home is taken due to a tax foreclosure.
Experienced investors look at tax foreclosures for investment purposes because there is such a large return on the investment. Of course you also have to be lucky enough to be the winning bidder. There are a number of uses that tax foreclosures may be put to. They can be used as a primary residence, sold at market value immediately, renovated and flipped, used as a vacation home or even be used for investment purposes such as rentals. In the property market we are experiencing today, buyers are coming out tops, so perhaps holding on to the property until values increase, might be the best thing. Having others pay your mortgage for you, while your investment property increases in value and the equity in it increases, creates a win-win scenario.
Search foreclosurerepos.com/listings.html foreclosures by state or get more information on foreclosurerepos.com foreclosure homes at ForeclosureRepos.com
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Kevin Simpson, GM Sales & Marketing
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