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Government Tax Foreclosure Process and Tips for Buyers

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By : Julie Thompson    99 or more times read
Tax is an integral part of every economy and Property Tax is the duty that Government levies on the value of the property which is to be paid by the Homeowners. Real Estate or Property Tax is the legal obligation of all homeowners and any violation in paying the same shall result in foreclosure by the government.

Foreclosure is a Serious Problem

Foreclosure is a serious problem for any homeowner as the owner has to vacate the premises immediately after the orders from the court and loses credibility for several years which disallows him to avail credit from other financial institutions. Government Tax Foreclosures is grave for most owners but prove a boon for many first time buyers and investors of real estate. The investors and buyers are able to purchase the property at cheapest rates which makes them run for Government Tax Foreclosures.

Government Tax Foreclosure Process

The process for Government Tax Foreclosure starts when the homeowner defaults in making tax obligatory payments on the real estate which comes under assets and the property is foreclosed. Once the property comes under foreclosure, the homeowner is given a chance to repay the tax liability by issuing him a government tax lien which is done by the internal revenue service. In case the owner fails to pay out the tax liability, the court indulges and helps the tax authority in auction process to recover the tax liability. The government tax lien is published in the local newspaper through a public notice inviting prospective buyers to bid in the auction process.

The auction process in Government Tax Foreclosure starts with the tax liable to be recovered on the property which is generally lower than the price of the property. This makes the property attractive for buyers as the fresh price is almost 40 to 60% cheaper than the prevalent market price. This shall come as a bonus to the buyers as the same property can be used to sell and gain profit.

Tips for Buyers of Government Tax Foreclosure

Buyers of Government Tax Foreclosures should take care of few things before closing the deal for the defaulted property. These include:

  1. The Buyers should check for the market price of the property and compare with the auction price whether it can save them some money.

  2. The Buyers should inspect the property before purchasing internally and externally which shall help them in estimating the actual cost of the property against the market price.

  3. The Buyers should check for further liens and loans on the property which shall transfer to the buyer if any.

  4. The Buyers should make available 10% of the total price which is to be paid immediately after the auction.

Online Availability for Government Tax Foreclosure

Most Government Tax Foreclosure are listed on the net and by searching online one can find the best possible property in the desired location easily. The sites also display pictures of the property along with the price which makes it easy for buyers to pick the best property and save money.
Search Foreclosures by state or get more information on Repo Houses for sale at

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