Avoid+foreclosure Foreclosure Property – Which Is Best To Buy, Mortgage, Or Tax? Posted By: Maggie

If this is a question you’re looking to answer, look no further. The clear winner is tax foreclosure property. Why? It’ll seem obvious in a second: no mortgage to pay off!

A lot of people don’t intuitively realize that tax foreclosure property almost never has a mortgage. This is because tax payments are usually wrapped into mortgage payments. This is no accident; the mortgage company will lose its stake in the property if it ends up at tax sale. So when the mortgage gets paid, the taxes get paid, and if someone stops paying their taxes, the mortgage company will take care of it to preserve the right to foreclose.

So by the time a foreclosure property makes it all the way to tax sale, it’s a safe bet that it doesn’t have a mortgage. And if you’ve done any investing at all, you know how much easier it is to deal with an investment property when you don’t have to worry about catching up on back mortgage payments.

Unfortunately, if you buy property at tax sale, you will run into a few pitfalls. Competition is the big one – it’s fierce. The other is that you can’t inspect the property before you buy it. A drive-by isn’t going to tell you if there are major issues lying within. So if you want to be successful, you’ve got to find a way to buy foreclosure property outside of the tax sale, and with as little competition as possible.

Luckily, there’s a little loophole most tax investors don’t realize.

After the tax sale, there’s a redemption period where the tax delinquent owner can come in and pay off the back taxes and redeem his deed from the buyer. During this time, in most places it’s still legal to buy that foreclosure property. Since once the deed’s been sold off, it becomes somewhat of a dire situation for the owner, they become the epitome of “desperate sellers.”

In fact, sadly, much of the time they’ve already given up at that point and view their deed as pretty worthless. During this time, you can often purchase their deeds for as little as a few hundred dollars. If you’re the benevolent type, you can even offer to share some of the proceeds of your flip with them. Tax delinquent owners are often overjoyed at this prospect, and unlike mortgage foreclosure investing, are often grateful to hear from someone like you.

Another loophole: collecting overages. When properties are sold at tax and mortgage foreclosure sale, sometimes the amount over what is owed in taxes escheats immediately into the government coffers. But in many states, that overage is held for the owner – only most of the time, they never figure that out. The money sits there, and then after a while, it, too, escheats to the government.

Due to a largely unknown loophole, these funds aren’t subject to money finder fee limits. In most states, you can legally collect up to a 50% finder’s fee. Can you imagine the possibilities there? There are literally billions of dollars of these funds waiting to be collected that will be lost if the owner doesn’t claim them – which makes your information highly valuable.

You’ve got to know how to find lists of these funds, and how to find and approach these owners so that they don’t try to collect without you and avoid your fee.

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So where to find records of these funds, and how to find their owners? Read the *free* Hooked On Overages “Insider’s Guide.” Visit http://Tax-Sale-Overages.com now.
Or, learn insider deedgrabbing strategies from this *free* report. Visit http://DeedGrabber.net now.

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