Tax Sales result if a real estate owner does not pay the required taxes on a property. The taxing entity (typically through the sheriff’s office) will offer the property up for sale at an auction as a “tax sale” to help generate payment of the unpaid tax liability. There are two types of tax sales – tax lien sales and tax deed sales. In tax lien sales, the government sells their right to the tax lien on the real estate property, allowing the buyer to bid on the tax debt for a favorable return on investment. In tax deed sales, the government sells full ownership and possession rights of the property to the investor.
The IRS can seize your real property for sale to satisfy debts owed that are unrelated to the property. Home Owners Association’s can instigate a tax sale for non-payment of home owner’s dues as well.
Banks, mortgage companies and note holders can force the sale of property for non payment of debt obligations. This is typically through a foreclosure process sold at auction. Each state has different requirements regarding foreclosures so check within your state and consult an attorney.
Great deals can be found at tax sales