How can I find a good deal on a foreclosure home?

I was watching an infomercial last night. It was John Beck's real estate something blah blah... It was talking about how homes are foreclosed with only the property taxes left to pay and you can buy these homes free and clear for the property tax value. A few thousand dollars or even sometimes only a few hundred dollars. I don't see how this could happen. Why would the owner of the house have the home paid off and then get foreclosed on property taxes? Wouldn't they just pay the few thousand dollars then to avoid foreclosure? It doesn't make any sense to me. But if it is true, hey, I would love to be able to buy a home that cheap to live in. My boyfriend and I have been looking for a condo to buy since the market is still down so low. But are these tax foreclosures a hoax or an unknown jewel? Thanks.

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madrigalreject

Asked by madrigalreject at 12:36 PM on Nov. 26, 2008 in Home & Garden

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Answers (7)
  • They are out there. See if your county has a website that keeps a list of these homes. Ours does, and they are auctioned off by the sherriff's office on a monthly basis. I wouldn't pay for a list. There are also certain loan criteria required to purchase these homes, and it may be harder to get a loan for a home like this. I would seriously check into it.
    chickadee8654

    Answer by chickadee8654 at 3:24 PM on Nov. 26, 2008

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  • That doesn't make any sense....if the home itself if payed off, then the bank has nothing to do with the house anymore, they can't foreclose something that they don't own....
    CarolynBarnett

    Answer by CarolynBarnett at 12:37 PM on Nov. 26, 2008

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  • I bought I home through a tax foreclosure company But Its not really a couple of hundred of thousand, You can get them cheap but not THAT cheap! I bought a 2200 sq ft home with 2 acres of land for 48,000( the taxes owed)
    robinalbright

    Answer by robinalbright at 12:39 PM on Nov. 26, 2008

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  • We got a 5 BR house in a beautiful area for $27K - Taxes owed!
    SabrinaMBowen

    Answer by SabrinaMBowen at 12:44 PM on Nov. 26, 2008

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  • My boss bought her home, which I would say is at least a $200K home for $70K. The really awesome deals are out there, but I would say they're pretty rare.
    Silvertears1275

    Answer by Silvertears1275 at 12:48 PM on Nov. 26, 2008

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  • While there are definitely some great deals out there--especially given the large number of foreclosures. But, I thought you had to pay the debt in full (whatever it is in a short amount of time--like 90 days or less?) So I thought it was more or less for those who had access to immediate funds (like a 401k plan) or savings/inheritance income?

    LoriKeet

    Answer by LoriKeet at 4:29 PM on Nov. 26, 2008

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  • Tax sales are different from foreclosures. With tax sales the county auctions the house with a starting price of the amount owed. Here in SC, the buyer has to give the owner 1 year to buy the house from them (winning bid + interest). After that year, the house belongs to the winning bidder free and clear. Don't spend the money on John Becks' system; check your county's website or call and ask about delinquent tax sales.
    sherriet

    Answer by sherriet at 4:51 PM on Nov. 26, 2008

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