How To Buy Tax Liens and Other Distressed Properties in Orange County

Finding ‘out of the box’ investments can be a great way to find success in real estate investing. In our latest post, we explore how to purchase tax liens and other distressed properties in Orange County.

What Is A Tax Lien Property?

When a homeowner isn’t paying their property taxes, a lien is placed against it, barring the property from being resold or refinanced. The period of time before a county issues a lien varies across the country. Once it is issued, it is auctioned off as a tax-lien certificate to the highest bidder. This bidder is then entitled to collect the back taxes as well as interest and fees from the current owner. If the owner isn’t able to pay, the owner of the tax lien certificate can foreclose on the property owner, thus taking ownership themselves.

Either way, the buyer of the tax lien certificate will make some money, it just takes time and patience. They could walk away with the back taxes plus applicable interest or the house itself!

Before You Buy

Have some cash set aside in case you do end up taking over the home. Chances are, you will want to make some changes, repairs or have it professionally cleaned.

Learn about the process in detail, and make sure any liens you are interested in buying, were filed properly. Research previous sales and buyers to get an idea of what you will be dealing with.

How To Buy

Go to your county’s website to find out when the next auction will be. Auctions are held differently from county to county. Learn about the bidding process in the county you wish to buy. Take a look at when the sale will be and what’s available. Research past sales to learn about previous opening bids and sale prices. Remember to not overbid. The homeowner only has to pay you the back taxes plus interest, not any additional funds you paid for the lien. Interest can vary at anywhere from 5-36% of what is owed. Run the numbers to make sure you don’t get stuck buying an overpriced tax lien.

Know What You Are Getting Into

Research the property and financial records. Make sure the property isn’t worthless and that the lien was correctly filed. Homeowners aren’t going to be thrilled about being foreclosed on, so don’t expect the property to be move-in ready if you end up taking it over. You can expect the place to be messy, appliances removed, and perhaps even some damage to the house.

Forclosing on the house can be a long and difficult process. You will likely need the help of a lawyer and a good amount of patience. It is good to partner with a professional, at least for your first few deals!

Buying Orange County tax-lien properties can be risky. Before you buy, do your homework. Talk to other investors, your accountant, attorney and trusted real estate professionals!

Do you want to buy a distressed property in Orange County or the surrounding area? We can help! Send us a message or give us a call today! 949-625-4533

Joe

Broker/Realtor/Investor/Mentor (41 years experience) Specialties: Buyer's Agent, Listing Agent, Foreclosure, Short-Sale, Property Management, Landlord I'm a Full Time Real Estate Professional, house flipper and mentor to many of my clients. I am here to help you get top dollar for your home or get you the best price for a home that you are going to live in. I have over 40 years of real estate experience for you to draw on and actively list and sell over 20 homes a year. I have sold over 600+ homes in the last ten years alone. I am a very skillful negotiator and will work diligently to help you realize the best possible price when buying or selling your home. With my Exclusive Home Acquisition & Sales System, I can find the Right Home for You! I have access to homes no other Realtor will show you. I can show you how to save an average of $10,000.00 on the purchase price. We will find a home that fits your needs, in a neighborhood that suits your style. If you are selling your home then I can bring all the professionals to you. I always include professional photos in ALL my listings. I have contractors standing by to assist with those upgrades if needed. I can also quickly get you ALL CASH offers for your home if you desire. My marketing surpasses all other agents. It begins with extensive internet advertising to hundreds of websites throughout the world. I do direct mail marketing for you home and also knock on doors in your neighborhood when I am holding an open house. I hold you home open to expose it to as many buyers as possible. My Exclusive program is designed to sell your home for Top Dollar in Any market. I am an experienced flipper here in Orange County and therefore can offer you my over 40 years of real estate experience. The information is available to you at no charge! If you like what you see, please call me and setup Your Free Consultation.

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