Real Estate & Investing

Rockwall Property Solutions asked:


How to Buy Tax Delinquent Property before the Auction

Figuring out how to navigate the various county offices can be frustrating, but it is absolutely necessary to be successful in the tax delinquent investment business. When I began investing in tax delinquent properties, I was not only confused by what each department’s function was, but I was also unsure about how to use their services.

There are typically three to five departments that you will work with when investing in tax delinquent properties. Sometimes the names vary from county to county and state to state, but this overview should get you started.

1. Treasurer/Tax Collector’s Office – As the name suggests, this is the office that collects property taxes. Here you can find the amount of taxes owed on delinquent properties. They can also tell you when the next tax lien or tax deed sale will be. Additionally, some states allow over the counter purchases of tax liens and tax deeds following the auction. So you would do this here as well

2. Assessor – The county assessor determines property values for taxing purposes. Perhaps you have received a “Property Tax Valuation Notice” from this office giving the estimated value of your property. When real estate is sold, the assessor is notified of the sale price as well as some of the terms of the sale. This gives them the ability to assess the value of all property in the county.

You may also find that the assessor’s office has copies of all property maps or plat maps. While these maps are available from the records office, they are typically in large, non-user friendly formats. The assessor has maps in more convenient formats and sizes.

The assessor is my first stop when I’m looking at multiple properties. Getting copies of all the plat maps helps me easily locate the properties I am looking for.

3. Clerk/Recorder – Here you will find all recorded documents in the history of the county. Records such as ownership changes, deeds, agreements, mortgages, liens, and court judgments are kept here. Depending on the county, records may be stored in electronic format, paper or microfiche. You will find that most counties have converted from paper and microfiche to electronic format. The records are sorted chronologically by book and page providing the ability to do a detailed title search.

4. Mapping department – I primarily use the mapping department when I need a comprehensive county map with roads and reference points. These maps are typically available for a nominal fee of around $10. Additionally, if the assessor does not have copies of the plat maps, you can get them here.

5. Planning and Zoning – If you have questions about what is permitted to be built on a particular property, you will need to consult the planning and zoning department. You can also check for limitations of allowed uses. For instance, if you want to bid on a property with a house that is located on a busy intersection, you will want to see if the property is zoned for commercial or residential use. In the case of a vacant lot on the edge of town, you definitely want to confirm how the property is zoned. It may be possible to have the property rezoned to significantly increase the property’s value.

Check out http://www.landprofitsreview.com for more tips and information about my course, the Land Profit Generator.  Also, you will have the opportunity to sign up for our free list that brings real estate investing tips and discounts right to your inbox.  No spam, just content!

evan asked:


[...] If you are concerned about any of the statements on your property tax bill, especially the property tax assessment value, you might want to consult with a property tax attorney. Although you can do the process yourself, you may feel overwhelmed by the legalities and find it necessary to have help. You can look in your local phone book under attorney’s ad then look for a lawyer that specializes in property tax issues. You may need to talk to a few attorneys before you find one that can help you with your case.

The property tax attorney can also help you if you owe delinquent property taxes. They can help you save your property from a property tax auction. Whether you need an attorney for fighting a high assessment value or for help establishing a payment plane to pay delinquent taxes, you should find one that specializes in these areas. A divorce lawyer or a estate lawyer may not be the best choice in this case. You need someone that understands the tax laws, and has dealt with property tax issues. This will benefit you more than you could understand. Someone that knows the tax laws is more qualified.

Some people may feel this is extreme for lowering your tax liability, but when you consider the years of taxes paid at a higher assessment rate, you are better off paying an attorney with knowledge and a proven record of accomplishment than paying several thousand dollars over the course of many years. Property assessments are not done every year and when they are done, they very rarely go down, but rather they go up. This will cause problems if you decide to sell your property. Many people look for the assessed value as well as the fair market value.

If you need a property tax attorney, you will find that they are qualified in most areas of the laws governing taxes. You may use a tax attorney to reduce your tax liability on county taxes due, if your property is tax exempt and the bill says that is not. You can also use a property tax attorney if you find your tax bill states your home is a two family home rather than a single family home. This matters because, you are suppose to have less tax liability for a single-family home than a two family home.

The property tax attorney will need all the available documents. The attorney will more than likely ask a private company to do another assessment of the property. This just ensures that you have grounds for an appeal. If the private company finds the assessment to be accurate, you might need to reconsider your appeal. [...]