I don't know what the general consensis in the country is, but I'm sick and tired of these real estate con artists telling people they can buy Tax Deed Property for "pennies on the dollar and sell it for a fortune in a matter of days"!
In Arkansas, here's how Tax Deed Property works and I sure would like to hear from others across the country to know just WHERE these wonder deeds can be had.
► First you have to be delinquent on your real estate tax for 3 years at which point the county collector will turn your file over to the State Land Commissioner
► Then the Land Commissioner sits on the unpaid tax bill for 2 more years before setting it up for auction. That's a total of 5 years of unpaid tax.
► The Land Commissioner sells the property at auction for the ASSESSED VALUATION, which is 20% of the value on the books, so if your home was valued at $100,000 then that means the Commissioner sells it at auction STARTING at a price of $20,000. PLUS you have to pay the past 5 years of unpaid tax.
► Now here's the Kicker! If you bid $20,000 and get the "Land Commissioner Deed", then the original owner has a 1 year Right of Redemption. That's right....you bought the property but the original owner can come forward and pay the back 5 years taxes and get the property back and the Commissioner will return your $20,000 and tax paid and THAT'S IT! So if you spent 1 penney fixing it up...you LOSE that money.
► The Land Commissioner says that "after the sale, the original owner has to file a notice of objection within 30 days as to why the sale should be set aside OR their chances of having it set aside are virtually nill". So one could conclude you are safe after 30 days of purchase BUT they still have the legal right for 12 whole months to file an action that "can" be undone.
So the best you can do is pay some $25,000 cash for a $100,000 home and let it sit vacant for a whole year before you can consider it yours. That's the way it is in Arkansas, so WHAT STATE LET'S YOU PAY $24.36 AND SELL IT FOR $125,000 IN 18 DAYS???? I may have to move to that state OR start selling a "Real Estate Infomercial" on How To Get Rich On Tax Deed Property!