Quote:
Originally Posted by After Shock Media
There is a lot of confusion going on between property tax sales, lien sales, and foreclosures.
Banks typically do not want to own any houses. Typically the auction is set at the price the bank or title owner owes. This can be more or less than the property is worth. Typically up until midnight the night of the auction a property owner can pay that balance and keep the house otherwise on the block it goes. Then each state has rules it follows on what to do if nobody bids at the minimum price owed and how to handle the next drop in price and so forth. It very well will just not be sold that day.
Properties not sold land in the hands of real estate companies that try to sell it for the bank.
At no times does the bank need to buy it back. The bank is whom owns it anyhow and is trying to liquidate it. Then there is a whole hierarchy of how other mortgages, liens, and taxes fall into place and the laws behind them.
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If you have a close relationship with your bank you can also buy it out before it goes to auction.
As far as land, I've been buying lots in subdivisions. I bought several at tax lien auctions but over the past few years the owners have gotten smart and figured out their property is worth a whole lot more than the taxes owed so there haven't been any in my subdivision for at least 3 years. The last one I bought for $1K and sold for $50K. Lots more profit and less work than pr0n
Right now the properties I have I bought from the owners so the profits won't be as good, but I'll still make money when I sell. I have builders contacting me at least once a month trying to buy 2 sets I have now.