Government Tax Foreclosures

Who Sells Government Tax Foreclosures?

Any government, including local, state, or federal government, can technically pursue government tax foreclosure sales against homeowners who don't pay their taxes. The most common types of tax foreclosure properties however are federal tax foreclosures, because federal taxes tend to be the most commonly unpaid or underpaid tax debts.

How do Property Tax Foreclosures Work?

If the property tax foreclosure is the result of a court order after a trial, a foreclosure sale could be scheduled right away and overseen by a trustee of the court or the tax collector. In many cases, this is the IRS, but could also be simply a trustee or clerk of the government agency. In the case of homeowners with unpaid taxes, the government will first issue a government tax lien. The tax lien will outline how much the homeowner owes in back taxes, including interest. If the homeowner cannot make adequate payment towards erasing the debt, or does not pay back the tax debt on time, the government will pursue tax lien foreclosures by moving to sell their property. This process is very similar to the way a mortgage foreclosure occurs, providing the homeowner a chance to pay off their debt before the sale occurs.

Why are Government Tax Foreclosure Homes Valuable?

Tax liens for sale and other government foreclosure listings can be extremely valuable to investors and homebuyers because they can be purchased for far below what they are actually worth. Most tax debts are often far below the actual value of the homeowner's property. Therefore, the government tax foreclosure homes can be far undersold, and the government can still collect the full amount of the tax debt from the sale. This creates huge opportunities for tax deed investing and discount home purchase. Buyers often end up getting savings of 30% to 60% off tax deed sales. These kinds of savings can make a good property investment a great one, and you just won't find deals like this anywhere else.

Is it Easy to Find Government Tax Foreclosures?

Government tax foreclosures and tax foreclosure sales happen in towns, cities and states all over the country. Unfortunately, they can be difficult to find because they are rarely advertised publicly. Most government tax foreclosure property goes to sale without much attention at all, and in the past, only in-the-know investors could take advantage of the opportunities they offered. But with the advent of online foreclosure listings services like BankForeclosuresSale.com, government tax foreclosure listings are accessible to anyone with a simple search of a database. Searching our service for tax liens for sale in your area can turn up scores of results in just seconds, allowing you to compare properties and choose the ones that interest you most.

How to Buy Government Tax Foreclosures

Once you've found government foreclosure listings that interest you, the next step is to get an assessment of the value of the property. Contact the trustee of the sale to schedule a walk-through, and also be sure to have any repair or remodeling costs estimated. Once you've got an accurate idea of what you think the property is worth and what you're willing to pay, you can formulate your offer. Government home foreclosures can either be sold through foreclosure auctions, or through an agent representing the government agency. In either case, only bid or offer as much as you're willing to pay. If you go above your maximum bid, you cut into your savings and future profits! Foreclosure sales are open to the public, so anyone can bid. All you have to do is be sure to have done good research beforehand, and you can find lots of great deals on government tax foreclosure properties.

What are My Resources for Help?

One of the benefits of buying government home foreclosures is that properties not sold by auction are sold through local agents, and this can be a very comfortable way to buy for foreclosure beginners. The process is often very similar to a traditional home purchase, except that you won't have to pay the agent for their services, and the price you stand to pay is so much less than full value. BankForeclosuresSale.com also has lots of helpful educational information on tax foreclosure properties, buying foreclosures, and making your investment work for you. Explore our listings and our resources to find how you can save on tax properties to learn more about these valuable homes.

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