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Tax Defaulted Property

When The Real Estate Market is booming, everyone is an investor, at least they think they are in their minds because the market has been inflated and they have equity money in their hands to invest. The truth is that when property values are inflated as they were in the late 80's and as they are now, it is easy for a homeowner to come into thousands of dollars and even a couple of hundred thousand dollars from the equity of their primary residence. They made that money over the years in real estate and so the nartural conclusion is to reinvest in Real Estate when the market is booming. But the folks of old school, pherhaps the landlords of years are eagerly selling off their properties when the market booms. WhY? Perhaps after years of nurturing tenants, they see a way to liquidate real property without suffering a loss and even gaining a profit and perhaps they move up to other properties that don't require hight maintance with. The truth is, everyone has a different reason.

Having said that, let move on to tax defaulted properties. A tax defaulted property is one where the property taxes are delinquent as of  5 p.m. on June 30, then the property becomes tax defaulted ( if June 30 falls on a weekend or holiday, taxes must be paid by 5 p.m. of the preceeding business day or the property tax will become tax-defaulted at 5:01 p.m.). Once the property has become tax defaulted, a redemption fee of $15.00 and additional penalties begin to accrue at the rate of 1½% per month of the unpaid taxes. This monthly penalty is affixed at 5 p.m. on the last day of each month (or the following business day if the last day of the month falls on the weekend or holiday).
Your taxes can remain unpaid for a maximum five years following tax default, at which time your property becomes subject to the Tax Collector’s power of sale. This means that your property will be offered for sale at a public auction or that it may be acquired by a public agency if you do not pay the taxes on the last day before the date on which the property is offered for sale or acquisition.

This brings us to the Tax Default Actions, where I mentioned earlier, everyone is an investor. By this I mean, people are supposed to obtain a below market value on tax defualted property, but when the market is inflated and you go to a tax default auction, it does not seem that way. Have you ever been to one? Each county has one every year and some are even conducted over the internet, like the County of San Bernardino. The sale of the tax defualted property has to paid for within days. If you are bidding for the higher price tax defualted properties, you have a good chance of buying below market value. The higher the price the less competive it is. We'er talking in the hunderd thousand dollar range or close to it.

One of the internet sites that handles county tax defualted properties for several counties is Bid 4 Assests.