6 Things To Consider Before You Buy Commercial Property-cagliari exchange

UnCategorized After you have narrowed your search to the properties or liens that are worthy of consideration, be sure to visit the county clerks office or recorders office and ask to see a listing of liens on the properties. Some counties make this process very easy. It may even be computerized so that you can search by the property owners last name. Other counties are not as sophisticated and you will have to look through books that list liens by either the property owners name or the name of the individual and/or company placing the liens. Oftentimes, the computer system or lien books will be divided into Grantors and Grantees. Be sure to check under both categories. Why are you doing this? If you are purchasing a tax lien, then you become a lienholder together with the state or county. You are looking for other liens, encumbrances or restrictions that you could be responsible for paying, or that would limit the value of the property. In most cases, mortgage liens and mechanics liens are erased or extinguished through the process of tax foreclosure. The tax lien generally has superiority. New Mexicos and Pennsylvanias state laws may not erase mortgages and other liens, so proceed with caution. IRS liens are not removed, but the federal government has only 120 days to redeem or it loses its rights to foreclosure. County, state or local government assessments are usually not released, and therefore become the deed holders responsibility. An example might be a mandatory assessment for a new sewer line, dredging of a lakefront property, or any number of improvements that the local government makes to the area. In addition, be sure to check for deed restrictions on the land or property. In other words, find out what can or cannot be done with the property. If it is land, find out what type of improvement (i.e., home or structure) can be built or cannot be built. If you are looking at commercial property, find out how the property is zoned. Finally, it is always a good idea, especially for tax deeds, to determine if the previous property owner has filed for bankruptcy. Bankruptcy can slow the tax foreclosure process, leaving many of the decisions to the court. You could become one of many creditors waiting in line. Step 6: Check for last minute redemptions One frustrating aspect to investing in tax liens and tax deeds is that property owners can pay their property taxes as late as a few minutes before the auction, depending upon the state. You may have dedicated a significant amount of time and research only to find out that your property of choice was redeemed. There is really nothing you can do about this except to plan on bidding on at least four to five properties, knowing that three or four of these properties could be redeemed. For tax deed auctions, last minute redemptions are higher (roughly 40 to 50 percent will be redeemed) because property owners are about to lose their house or land. For tax liens, the rate is lower (roughly 20 percent). If you can, make sure you review an updated listing of the properties the day before the auction. Some states/counties provide updated lists online. For others, you will just have to call or wait until the auction starts. About the Author: 相关的主题文章: