Most counties will foreclose on properties for taxes owed as a last resort only, usually offering the owner every opportunity to pay the taxes, fees, and any interest. However, when the owner refuses to pay or simply cannot pay, then the county may take the property to be sold for the back taxes, fees and interest.
Properties sold as foreclosure by county typically go through phases. These may be, in order: phase one—the initial foreclosure sale; phase two: the county auction of parcels (if no one bids, the county becomes the owner and will sell at a second auction); the third phase: when property is auctioned by the county.
Phase One of the process is the foreclosure sale. Properties are sold due to failure by the owner to pay property taxes to the county. The county will typically sell this property for the taxes owed plus any legal fees. Anyone can bid on this property provided their bid is an amount over the county’s bid and will gain ownership after a ten day ‘upset’ bid period.
Phase Two of the process is the county auction. This occurs when parcels have already completed the tax foreclosure phase and the property is deeded in the county’s name. If no bids on these properties, they will be moved into the surplus property category.
Phase Three, the final phase occurs when the property has completed both the tax foreclosure sale and the county auction process with no bids. At this point, the parcels may be purchased directly from the county by submitting a written offer or completing a ‘form for bid’ in some counties.
None of these types of properties—foreclosures by county– are to be confused with any property held by the county for its own use.
Though it is unfortunate for the original property owner, most of these foreclosures by county properties are excellent investment properties and offer huge returns on investment.
Most require little repair or renovation and even the ones that will need a lot of tender loving care will still net you a tremendous profit when sold, provided they are in the proper location. Always remember, no matter how wonderful the investment looks financially, location is everything!!! This applies to all aspects of buying and selling foreclosures by county properties. So, do your homework and investigate the property thoroughly. When possible, have it inspected; check with local realtors; drive around the neighborhood; and try to determine what will be required to make the property sell. After all, if no one wants to buy your foreclosures by county property, you will not have gained anything.
