How To Prepare For A Land Tax Sale

How To Prepare For A Land Tax Sale



How to​ Prepare for a​ Land Tax Sale
You just read,​ in​ the​ legal section of​ your local newspaper,​ about vacant lots or​ land parcels for sale .​
This county sale is​ due too uncollected back real estate taxes that are owned to​ your local county offices by the​ current land owner.
If you​ have never attended a​ Real Estate Tax sale before,​ their is​ a​ learning curve on​ How to​ Prepare for this land purchasing,​ opportunity event.
This is​ an​ opportunity,​ because you​ can invest in​ land for sale at​ a​ very small fraction of​ it's market value .​
a​ real buy low event .​
However,​ preparation meeting this opportunity will help spell success in​ your new purchase or​ purchases of​ land for sale.
PART I
Research your potential land for sale purchase .​
Many advise that you​ do a​ little title search yourself at​ the​ local county assessors office to​ look for any title liens or​ other clouds to​ the​ title within the​ lands recorded documents .​
An easier process is​ to​ pay a​ title company for a​ Title Binder,​ which will reveal any liens or​ title disputes prior to​ your bidding on​ any land.
In order to​ do a​ search you​ need what they call a​ legal description .​
Usually this consists of​ the​ lot number,​ block number and unit number of​ a​ named subdivision .​
For example,​ lot 1,​ block 12,​ unit 3 of​ the​ Pacific Subdivision .​
Obviously this subdivision is​ located in​ your county and state.
In your search,​ the​ local county tax is​ a​ lien against this land for sale .​
This will show on​ your search or​ title binder,​ but should also show as​ a​ dollar amount in​ back taxes within the​ local newspapers legal notice .​
Other federal back taxes or​ what is​ called mechanics liens may also show .​
So when the​ title is​ transferred to​ you​ or​ others,​ these liens need to​ be paid in​ order to​ pass clear title .​
If you​ do not discover these liens,​ you​ will have to​ pay your bid amount and eventually pay these other liens before re-marketing the​ land.
After your title search you​ need to​ locate your lot for sale .​
If it's located in​ an​ existing subdivision,​ a​ local street name and number may suffice .​
However,​ much vacant land is​ located in​ the​ open areas were no development has taken place .​
In this case,​ you​ need a​ plat which shows all the​ lots located in​ an​ existing area .​
These plats show various lots and street names and are public information .​
You can purchase recorded plats at​ your county court house or​ a​ local mapping service at​ very reasonable prices.
When viewing the​ land for sale,​ you​ need to​ determine if​ this a​ buy now and hold for later sale investment .​
If not,​ perhaps you​ can purchase now and re-sale immediately for an​ immediate gain .​
In other words,​ what are your investment goals.

PART II
You have your plat maps,​ a​ list of​ eligible lots or​ land parcels for sale that you​ want to​ bid on​ and a​ letter of​ credit .​
You need to​ visit your bank a​ day or​ two before the​ tax land sale and arrange to​ have cash available or​ a​ letter of​ credit showing you​ have a​ dollar stated amount in​ you​ checking account .​
The county wants certified funds or​ cash in​ order to​ transfer title to​ you,​ the​ new land owner .​
Assuming you​ successfully won the​ land bid.
You can transfer funds from your savings account or​ line of​ credit to​ your checking account .​
Make sure you​ have ample amounts in​ order to​ bid on​ more than one piece of​ property for sale at​ the​ land auction.
Remember,​ the​ letter of​ credit is​ essential in​ order to​ bid .​
The county officials will not just accept you​ personal checks without this letter .​
With it,​ you​ will receive your bidding number .​
Sounds as​ though you​ might be prepared now,​ but a​ few other needed elements exist for your success .​
Elements that we will review in​ the​ Last Part of​ this article.
THE LAST PART




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