He might not be telling you the whole story. I don't know of any jurisdiction that doesn't have a redemption period usually 12-18 months. During that time the prior owner can pay back the amount paid plus the bid interest and gets the property back.
He might not be telling all, and it may be some kind of special sale from the tax authorities (i.e., the county) that allows him to get the deed in 48 hours or less.
I always thought that was the case. But, here's the thing about that, though. He did mention to me that in the past that it was that way, with a time period of redemption involved -- and he said he's sitting on a few of those right now, waiting for the redemption period to run out. However, he said, that these present ones that he's getting -- that there is no waiting period and that the "law has changed on it".
I'll have to check into it and see what's going on there. I mean, he was talking about getting 500 acres of property out in the country for a few thousand dollars of taxes that he paid. That's quite a deal if he can do that.
I told him that he sounded like those TV Infomercials that I've seen late at night ... LOL ... He was asking me if I would be interested in doing something like that, but I didn't say I was interested. I will check it out and see if what he says is true.
If I can get some property that's worth about $100,000 for a mere $5,000 or less (for taxes at a tax sale), well, that's one way to get into something "low" and "sell high" ... or sit on it for a while and sell later... :-) You can't go wrong with a few thousand dollars like that.
Smart approach, buyer beware. ;)
The one thing that I keep wondering is if he's picking up a property that had no mortgage for a few thousand dollars why didn't the prior owner borrow against it for the amount due on the taxes and sell it for whatever he/she could get?
“You can’t go wrong with a few thousand dollars like that. “
Oh, yes you can.
If it were that easy, there would be 300,000 people at each tax lien sale, or forclosure sale, including me.
The only safe way to do that is buy a tax lien, and wait to be bought out by the sucker who inadvertently got his house sucked out from underneath him. It takes as long as 2 years, before you can’t be paid off.
There are 3 and 4 bedroom homes for sale in Detroit for 6-12,000. Why do you think nobody wants them?