Mom is correct on the 1 year buyback. Tax Sale places are not a Quick Flip.
Well that's just silly. Why not wait until the 1 year period is up before placing the property up for sale?
Because that would make the state wait another year for their money. This way they get paid, and it's somebody else's problem.
And then the owner shows up, pays the back taxes, so the state gets paid twice, and the buyer gets screwed?? That sounds about right.
If the owner pays the back taxes and penalty, that goes to the buyer.
They have already waited for the tax money for some time. Usually longer than a year, sometimes not.
Some people just don't get motivated until it comes up for sale, then they pay the back taxes and the penalty.
I know a guy that made a killing on buying properties like this. He did it more to collect the penalty which I think was 10%. Then he got silly and bought a couple places without vetting them first. Got stuck with a couple wonderful properties. They were up for tax sale because they were abandoned.
He tried to sell one to me for cheap. I was too busy at the time to deal with it. Now the city or county will get involved and try to condemn the places as soon as they are sold.
Have heard of people buying, rehabbing and renting or moving in to tax properties only to have the original owner come back within the year and take the place. You do not get to charge for any of the upgrades or maintenance on the place either. At least that was the rule back when I was considering playing the game.
You can still buy the property but you will have to clear up the taxes and any liens. Factor those costs into your offer.