A tax foreclosure auction is probably the best place where a person can buy a home at a very low cost, though this fact is not so readily known to the general public at large. The fact is that if you expend a little effort and enquire about a tax foreclosure auction you will soon realize that there are foreclosed homes being auctioned in almost every US city and everyone can bid to own a home without in the process being forced into paying an arm and a leg for their efforts.
Property Taxes
Every home in the US is taxed though not every American homeowner can or will pay their property taxes. And, failure to pay property taxes can lead to the government repossessing the property and then putting up the property for sale at a tax foreclosure auction. So, if you know where and when a tax foreclosure auction is being held you can place a bid and if your bid is the highest then you can own that property.
Of course, every state in the US has their own laws that restrict and regulate sales of properties in each state and so you must, before heading off to a tax foreclosure auction, learn about the relevant rules and regulations relevant for the state in which the auction is being held. There are of course certain states that require that full purchase price be paid on the date that the auction is being held while other states have other requirements and allow you to pay within a specific timeframe. So, know which rule is being enforced before making your bid.
You need to also take into account the fact that many properties being put up at a tax foreclosure auction may already have been redeemed by their owners prior to the date of the auction and so some properties will not be auctioned on the date of the auction sale. What s more, you need to also factor in that the property owner may have certain rights to redeem the property even after the tax foreclosure auction is held. This factor too should be kept in mind before placing your bid.
Each state has the right to set out a particular minimum price for a property being sold at a tax foreclosure auction and if this minimum price is not reached then the property may be re-auctioned at a later date.
A real estate foreclosure auction is another good option when it comes to buying properties at lower than their market values. Properties that have been foreclosed due to the owner not being able to pay for the mortgage are usually put up for sale at such auctions and this is when a person with enough acumen and money can buy a cheap home without much fuss or bother.