Preparing for the Tax Sale: Step 3 of 3

by Chris on May 14, 2012

Now for more information about what is hiding in the tax sale property advertisements published by the sheriff. Use this example to test yourself in analyzing an ad. The first thing that pops out at me is the names of the owners. Companies with names like “ABC Tax Sale Properties” is a sure indicator that the property was previously sold for unpaid taxes. As previously mentioned, recognize this and act accordingly. The next red flag that is raised is the name of religious organization such as churches. Normally these entities are exempt from taxation and the sale is like based on an erroneous assessment of taxes. While this is not the case one hundred percent of the time, it is easiest to avoid any problems by avoiding these properties all together.

Some final tips on reading the ads is to watch the assessed value. Some, but not all advertisements may include an “assessed value” of property. Sometimes the assessed value is way less than the amount of taxes owed. This may reflect some title issues that are lurking under the surface. Sometimes liens are added to the tax bill. Sometimes past years are clumped together. Watch out for this nasty little detail which can result in overpaying on property.

So, go out and get your newspapers!


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