Do not get on a final decision on a property before a tax sale. Keep in mind that the list of properties up for grabs is going to change from day to day as the sale gets nearer. Also, some of the homeowners pay off their back taxes before the auction starts. This is why you need to update yourself regularly on the latest information regarding the status of the properties. By doing so, you do not waste precious time in attending a tax sale, wherein the properties you’re interested were removed from the list.
The ability to distinguish the good properties is an important skill for you to have in order to be successful in tax sale investment. Acquiring any properties is not just the only thing needed because you need to get the marketable ones. With many unsold homes in today’s real estate industry, you must acquire those which are located in a stable booming area. So, research the properties ahead of time.
Do you know the common types of deeds that are used by the government to convey properties? If you do not know them yet, then here is an explanation on each one.
This deed transfers the title to the property. At the time of transfer, the grantor must quit any liability that is attached to the estate. Liabilities include judgments against the grantor, code violations, and mechanic liens. However, mortgages remain and are the responsibility of the grantor even after the transfer.
Limited Warranty Deed
This type of deed gives the grantor the right to transfer the deed. It makes it an insurable title rather than a clear one. It is also called a Special Warrant Deed.
This type of deed guarantees that the grantor is transferring a clear title to the property buyer. A clear title assures of no defects or encumbrances.
Throughout your real estate investing course, you may also encounter other types of deeds. So, it is very crucial to do due diligence on each type in order to determine on what you’re dealing with.