Sometimes, you have to get a little creative to be competitive in the real estate market. For example, if you haven’t been able to find the perfect property listed by the owner, you may need to look into foreclosure sales or tax lien auctions.
Potential buyers can sometimes snap up real estate for bargain prices by purchasing a property owned by someone who has failed to make mortgage or tax payments on the property. What should you expect if you tried to purchase a Connecticut home through a tax lien auction?
You will have to make the highest bid
It is common for auctioning authorities to advertise properties available for tax lien sale at relatively low prices. They generally only need the minimum bid to be enough to cover the unpaid taxes on the property.
Not only will your bid need to be enough to cover the taxes, but it will also have to beat out anyone else bidding on the property. After your winning bid, you will still have to wait before becoming the official owner.
The previous owner has a chance to redeem the property
Connecticut state law authorizes taxing authorities to place liens against and sell properties with unpaid taxes, but the law also requires that property owners be given the chance to redeem the property after a tax sale.
If they had clearly abandoned the property, you may be able to record a new deed in as little as 60 days. In most other cases, the owner will have six months to redeem the property. If they fail to do so, you can then transfer ownership officially into your name. If they do redeem the property, they will have to repay you what you paid on the property and possibly interest and fees.
Learning about the different ways you can acquire real property can help you buy a home or expand your investment portfolio.