Government Tax liens

Share this page in Twitter     
Bookmark on Delicious Bookmark this on Delicious

In case if one is not able to cover the taxes required, the tax foreclosure appears.

We may characterize the tax foreclosure homes as liens on houses. In spite of this tax foreclosure is more influential then normal mortgage. It means that tax lien is always of higher priority then mortgage. But it is important to keep in mind that IRS (Internal Revenue Service) liens of local authorities still exist and it is a possible the responsibility of investor.

The taxes on real property are collected all over the country. This kind of taxes are quite significant because of its essential role in forming the state budget. If county lacks of the real estate taxes it may lead to bankruptcy.

To keep this situation under control local authorities use a way: a lien is created automatically and in case of problem loan this debt can be always sold to investors. In this situation each participant obtains its own advantages: authorities fulfill the budget, problem borrowers extend the payment period, and investor inputs his money in high profit low risk project. Use this link to read more about buying foreclosure house

Find REO or short sale agent

To buy a REO property, the foreclosure which belongs to bank, one needs to choose the particular house he is interested in. This is the main reason to create detailed lists of REO homes available. As a rule dealing with foreclosure allows buyers to get a house, paying for it less, then normal market price.

But it happens, that prices in such kind of lists are too high or too low or maybe exactly right. If you buy real estate on foreclosure market for the first time, it is highly recommended to find a professional agent. Agents have priceless experience of dealing with REO and knowledge, which will help you to benefit from this operation. The agent should work having your interest as the highest priority.

How To Find A Professional REO agent? Try to find an agent who is busy, not one who has three or four client per year. If an agent is busy with plenty of deals it shows that he probably has a wide range of connections with sellers and buyers of REO property.