Tax Deed Sales and Your Righs Business Articles | August 4 Wholesale Michael Jordan Jersey , 2010
Tax deed sales are a subject very few know much about, yet each year, thousands of Americans find their homes on the auction block for outstanding back taxes. Learning about tax deed sales, and your rights as either a buyer or seller, is the best way to keep you and your home protected.

Unlike a foreclosure Wholesale Joe Crede Jersey , a tax deed sale is not held by a bank or lending institution for non-payment of a mortgage. Instead, the sale is held by a government agency that takes possession of a piece of real estate because the owner has not paid his back taxes. The home will typically be sold at an auction, where the minimum bid is calculated by adding the amount of tax owed to the government, the interest accrued on the back taxes, plus the cost of the sale.

A tax deed sale is not the same as a lien Wholesale Early Wynn Jersey , the first step the government will generally take in attempting to collect back taxes. A lien certificate will be issued for the outstanding amount plus interest, and the home owner?s paychecks or tax refund checks may be garnished in order to collect the back taxes. In some states, the owner may be arrested by the sheriff?s office and fined or imprisoned for failure to pay real estate taxes. If none of these tactics are effective, the government will then seek permission to sell the property at auction.

Each state is different when it comes to the policy of collecting delinquent real estate tariffs. Some states are deed sale states, some are lien certificate states Wholesale Robin Ventura Jersey , and some employ a mixture of both techniques. If a person is looking to purchase a property at auction, or fears his home is in danger because of unpaid back taxes on the property, he should contact an attorney or conduct research into the laws and procedures which apply to his area of residence.

Those seeking to purchase property from a tax deed sale can often get a significant deal on doing so; however, the process comes with some risk. Some states allow a grace period, often called a redemption period Wholesale Bill Melton Jersey , during which the original owner may reclaim the property through payment of back taxes, fees, and interest, in addition to a penalty of 10-20%. If the owner makes payment under these terms while the property is still in a redemption period, the deed reverts back to him. The person who bought the property at auction will be properly reimbursed Wholesale Paul Konerko Jersey , but holds no rights to the property. In addition, neither the government nor the original owner is required to pay reimbursement to the purchaser for any improvements made to the property. Because of this, it is recommended that no work be done on the property until the redemption period has expired and the purchaser is the full legal owner.

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