A: Many agents and buyers wonder about how they can purchase a property for the past due taxes. It seems like a great idea to catch up someone’s taxes and get a deed for practically nothing. Unfortunately, there are a lot of misconceptions about how this process actually works. Each state is different, but here are the facts to remember for Georgia:

• Georgia does not sell tax lien certificates. Georgia does tax deed sales.
• You do not need to pre-register to bid at the tax sale, but you must be present to bid.
• Tax sales are held on the first Tuesday of each month just like foreclosure auctions.
• The opening bid for a property is the amount of tax due PLUS penalties, interest, FiFa costs, levy costs, administrative levy fee, certified mail costs, advertising costs and tax deed preparation and recording fee.
• The property is sold to the highest bidder, and payment is required IN FULL at the completion of the sale. Payment must be cash, cashier’s check or money order.
• The purchaser will receive a tax deed to the property, HOWEVER they cannot take immediate possession of the property, make any improvements or move onto the property. Georgia law allows the property owner to have a redemption period of 1 year.
• This means that the owner has the right to “repurchase” or “redeem” the property for 12 months. The redemption price is the bid amount plus any taxes paid by the purchaser after the tax sale plus any special assessments on the property plus 20% of the amount for the first year (or fraction of the year) which has elapsed since the date of sale and a 10% premium for each additional year plus sheriff and advertising costs.
• If the owner redeems the title, it places it back in the owner’s hands with all original liens still in place.
• A tax deed has the same force and effect as a lien.
• Prospective purchasers are strongly encouraged to seek legal counsel before buying a tax deed.
• No warranties are given or implied and clear title is not assured when buying a tax deed. The primary concern of the taxing authority is the payment of delinquent taxes.
• A tax deed only conveys “defeasible” title to the property. To get fee simple title, a tax deed purchaser must foreclose the right to redeem.
• If an owner does not redeem the property, the tax deed purchaser can file paperwork to foreclose on the tax deed and remove the right to redeem. Notice must be delivered by certified mail to the owner and any interest holders advising them of the foreclosure. Plus, it must be advertised in the newspaper for 4 consecutive weeks.

Although tax sales can be a lucrative investment, a lot of study and research is advisable before going forward.

Here is an article from the Atlanta Journal and Constitution that highlights the new partnership: http://www.ajc.com/business/metro-brokers-gets-new-230410.html

Homebuyer credit extended for military
By CHRIS SMITH • The Leaf-Chronicle • October 9, 2009

A bill approved in the U.S. House Thursday makes first-time homebuyer tax credits that are worth up to $8,000 more flexible for military families.
The legislation, which passed unanimously, waives the repayment requirements for military families who take advantage of homebuyer tax credits but are required to move or sell their homes because of government orders, according to a news release from the office of U.S. Rep. John Tanner, D-Tenn., who co-sponsored the legislation.

The bill also gives those serving away from home in 2009 an additional year, to December 2010, to take advantage of the credit, the release said.

The bill “protects the foreign service officers, the military and the intelligence community members who may have been ordered or otherwise sent from their homes,” Tanner said Wednesday on the House floor. “It should be done.”

The bipartisan bill complies with the House “pay as you go” rules designed to curb deficit spending, the release said.

“Homeownership has long been a cornerstone of the American dream,” U.S. Rep. Ed Whitfield, R-Ky., said in a news release. “The brave men and women who serve our nation abroad should be given every opportunity to make this dream a reality.”

The bill has not yet been considered in the Senate. Tanner’s 8th District covers most of northwest Tennessee and stretches to south Montgomery County. Whitfield’s district covers southwest Kentucky, including Hopkinsville and Oak Grove.

Chris Smith is Senior Editor/Local News for The Leaf-Chronicle and can be reached at 245-0282 or by e-mail at chrissmith@theleafchronicle.com.

If you or someone who you know is in the market to Buy, Sell, or Lease Property, please do not hesitate to contact me! I would LOVE to assist you! Please visit my website at http://www.TrishPeters.com to search for properties and view additional information about the $8,000 Tax Credit. Remember, “With GOD all things are possible!” & real estate is the single best investment that there is…its’s up to you to take advantage of the wonderful opportunities that await you!

P.S. Don’t forget to add me as your friend on Facebook http://www.facebook.com/trishmyrickpeters and on Twitter http://www.twitter.com/TrishPeters

I also wanted EVERYONE to know that the market, real estate that is, is alive and well! Yes, the first-time homebuyers are driving the market with the help of the $8,000 tax credit. New homeowners are cashing in, compliments of Uncle Sam, and are either replenishing their savings from the home purchase or upgrading and fixing up their new purchase. Whatever they decide to do is one thing, but the fact is that, despite what the media says about the job market and the unemployment rate, people are STILL buying houses! Which is great for me. Let’s hope the government does the right things and extend the tax credit so that people can continue to take advantage of record low home prices and mortgage rates.  I have been able to take advantage of more sales because when a lot of agents saw the housing market decline, they did not renew their licenses or got out of the business altogether. I love working with the first-time homebuyers! Not only are the armed with TONS of information and knowledgable about the mortgage process, they are enthusiastic, patient and ready to embark on the new journey of homeownership. The median price for purchasing a home in GA seem to be around $160,000 or less and first timers are buying them up!

Another market that is alive and well is the…you guessed it!…the RENTAL market! The rental market has helped numerous Sellers get the majority or all of their mortgage paid each month. These Sellers have had their property listed on the market for a while and its JUST NOT MOVING! In turn, they decide to become a landlord to keep the bills paid and avoid the big “F” (foreclosure)! Renting also helps those who have recently experienced foreclosure and need somewhere to live, or for people ready to buy a home and are not quite their credit wise! Either way, it’s a win-win because people will ALWAYS need somewhere to live. Being a landlord is NOT for everyone so do your homework before you make this decision, but most of all, if the tenants are paying you rent to live there, PLEASE pay your mortgage. It is very unfair for a landlord to accept rent and the house goes into foreclosure. I will dedicate and entire entry, one day, to that subject.

Since I am turning over my new “blogging” leaf, I do not want to write too much so that I have something for you guys on my next post! So, remember, real estate is  the single best investment that there is…its’s up to you to take advantage of the wonderful opportunities that await you! BUY, SELL, LEASE, visit http://www.TrishPeters.com and remember, “With GOD, ALL things are possible!” Be Blessed!!!

P.S. Follow me on Twitter: http://www.twitter.com/TrishPeters & add me on Facebook http://www.facebook.com/trishmyrickpeters

Shared via AddThis

Shared via AddThis