Archive for January, 2009
by William Blake
A tax lien can be applied to a home by the federal or state government when a person has not been paying their taxes. The lien can later be used to take possession of the home or property if it seems that the owner is planning on evading taxes.
The owner of the home has to pay all the taxes within a set period of time or else the property in question can be auctioned off publicly by the government.
If you are thinking about purchasing a home that has been made available for sale by means of a government tax foreclosure it is important that you know that you are accepting any and all risks that are associated with the property; the government offers no warranties on properties sold in this way. This can create serious problems. At some times, individuals have purchased properties at auctions without ever actually seeing them and have wound up wanting to get out of the sale. Even though the government could choose to allow the buyer to bail out of the transaction, they will lose their 10% deposit from the auction no matter what.
Additionally, if the property is resold and the final bid is less than that of the original bid, the person backing out can be held responsible for the difference. Buying home through government tax foreclosures can provide a chance to buy houses considerably below their market value, but buyers must be aware of the dangers involved before bidding.
Tax Sales: Not Always Final Immediately
When a home is auctioned due to government tax foreclosures, many states give the original homeowner 10 days from the date of the sale to pay all taxed due and reclaim ownership of the home. When this happen, the bidder is refunded any deposit they made.
Follow-up bids are also permissible at government tax foreclosure auctions in some states. These bids are made after the auction has ended and must be for a price that is at least 10% higher than the original winning bid was.
For those with a federal income tax lien they should be able to avoid government tax foreclosures by making arrangements to pay off the debt. The Internal Revenue Service as well as many state governments offer programs where a compromise offer can be made in order to avoid drastic measures such as government tax foreclosures. However, ignoring the situation usually results in foreclosures without further notice.
About the Author:
Looking for the fastest way to pay off debt? Visit the Debt Reduction Academy website, where you can claim your free 5 day e-course "Operation Money-Find: How To Find Money To Start Paying Off Your Debt This Month". Grab your copy now at http://www.debtreductionacademy.com/minicourse.php
by William Blake
You may not realize it but banks aren't the only ones conducting foreclosures nowadays. The Federal Government, too, conducts foreclosures. Government foreclosures occur for several reasons. Most of the time it is because someone is receiving government help and fails to live up to their end of the bargain. For instance, if someone is living in government subsidized housing, and can no longer make the small payments required to stay in that home, the government will foreclose and will force that person to leave.
This is the perfect opportunity for a potential buyer to make a purchase. Even though you will not be able to get anything for free from the government, you could purchase a property for a very low price, especially if you make a good offer. The government is interested in making money, and they can do that better if the property in question is occupied.
Using Local Newspapers
The classified section of any local newspaper should contain information regarding government foreclosures that are scheduled to occur in the area. Properties such as apartments, homes, and farm land are all available. To make an offer, simply contact the government office that is handling the foreclosure process. In most cases the government will be willing to accept any reasonable offer. Again, their goal is to make money off an occupied property.
Government Run Websites
Certain government run websites also list information regarding local government foreclosures. For example, the official website of Housing and Urban Development, commonly referred to as HUD, contains useful information regarding foreclosure properties. Checking these websites frequently will help you be ready to take advantage of an opportunity whenever it presents itself.
Get Great Bargain Prices on Homes and Other Properties
When you purchase a home or other property that is a government foreclosure, you will be able to get a great low price that you would not be able to find anywhere else. You need to stay on top of emerging opportunities so that you can jump at any chance that appears. The property of your dreams could be on the market as a government foreclosure tomorrow, so you need to check the Internet, local papers, and any other sources you know of to find out when and where there are government foreclosures.
About the Author:
Would you like to find some extra cash to help wipe out credit card debt this month? Visit the Debt Reduction Academy website, where you can claim your free 5 day mini course "Operation Money-Find: How To Find Money To Start Paying Off Your Debt This Month". Grab your copy now at http://www.debtreductionacademy.com/minicourse.php