Guess What I just did

[7thswan]

Well, I should say We. Went to town to get a new ice fishing pole and pay the land Taxes. In the Tax office Dh asks the Woman about a lot with lake acess being sold for nonpayment. She says which one, there are 3. Dh gomes out to the truck and tells me I say go back in and buy them. 3- 50x150+ lots for $50. bucks each. The taxes will $25. a year each.How cool is that? Would you have done it? In a bit we'll be going to look at them.

[AngieM2]

Heck yes, I'd have done that. Now that gives me an idea to go down to the tax office here and see if they have any land to sell for back taxes.

[GrannyG]

Absolutely....you cannot go wrong with that price for land....Hugs..wonderful investment...

[Becka03]

That is incredible ! Awesome good for you!

[Harry Chickpea]

That pays the taxes, but what other encumbrances does the land have? Paying the taxes on a bit of property doesn't obviate the need for a title search.

[simi-steading]

I was just about to mention that you still need to deal with the titles, and I believe that if the owners do come back and pay the taxes they can still reclaim the property...

The way I understand buying back taxes is, is that you hold a tax lien against the property and the owner still has the opportunity to pay you off with interest to remove the lien..

I could be wrong, but that's the way I understand the way it works.

One other thing I'd wonder about is are there other liens on the property?

[simi-steading]

Here... I just found this concerning tax lien sales...

This is a thread here on HT...
Buying property through a tax delinquency sale?

take note of what Big Rockpile says in that thread. He said he bought a property the same way, and the owner can come back and pay you the taxes and interest within 25 years and reclaim the property.

If I was in your shoes, I'd be finding an attorney fairly quickly to find out your state laws.

[frogmammy]

It ***ALL*** depends on where you live.

Mon

[Cabin Fever]

The taxes may be $25/lot this year but next year they are putting in curb & gutter, sewer and water with an estimated assessment of $20,000 per lot.

[haypoint]

Originally Posted by 7thswan

Well, I should say We. Went to town to get a new ice fishing pole and pay the land Taxes. In the Tax office Dh asks the Woman about a lot with lake acess being sold for nonpayment. She says which one, there are 3. Dh gomes out to the truck and tells me I say go back in and buy them. 3- 50x150+ lots for $50. bucks each. The taxes will $25. a year each.How cool is that? Would you have done it? In a bit we'll be going to look at them.

It has been a few years since I chased that carrot on a stick. So, the rules could have changed. Back a few years, you can pay the back taxes and fees and interest. Then the owner has a year to catch back up and pay 1% per month interest to you. That figures out to about 14% APR, with monthly compounding. Perhaps you paid 2010 taxes? Next year, if the owner doesn't pay up, you must pay all the taxes up to date and then wait awhile, then the deed goes to you.

There is/was a guy in Michigan that bought much of the back tax properties. Fred Prince. 99.9% he got his money back, but over 30 years he had ammassed a lot of land. He placed it into Timber Reserve so property taxes were not due until the ttimber was cut.

You cannot go on this property yet, as it isn't yours legally. I figured I couldn't lose as I made interest on my money, but they moved so slowly that months went by from the time the owner paid up and I got my check.

Fun hobby, but I wouldn't buy a speed boat just yet.

[MJsLady]

Here the original owner has 2 years to pay back taxes.
They sell these things at a sale every... 6 months I think, it is on a Tuesday.
The problem you face here is guys with deep pockets by these houses and fix then resell them.
If you can't pay $10,000 sometimes you are out of luck.
Sometimes you do get lucky.
The house next door to me was sold that way.
A family bought it as an "emergency home" if some on in their family needed a place to stay. They got it for $2600!
Their son lives there now, they have had it 4 years and he is making it into a nice mini ranch.

[Sawmill Jim]

Google is your friend Mi. tax laws . Anyone can pay anyone's taxes if the people are behind you put a tax lean on the property ,after so many years you can foreclose and force sale this is done at the court house door .SOME STATES . I didn't read much of Mi's but i think you just paid someones tax for them .Or did they hand you the deed .

[Molly Mckee]

The law varies from state to state, in some places from county to county. worst case you get your money back, plus interest and costs. Usually when a government entity sells property it clears the title. $150.00-I'd do it!

[dkhern]

dont know but ive never heard of a deed being transfered w/o a public auction.

[FarmerRob]

Just call or go back to the tax office where you bought them and they will be able to explain about the redemption period and other possible complications that you may have to deal with. I would do this before I ever considered getting an attorney.

[tarbe]

Sounds like you hit the lottery!

Congratulations!

[mnn2501]

I am not sure this is considered a tax sale since you got it from the county clerk rather than at auction but if it was, sounds like you own the property. From https://www.tax-sale.info/html/index/page/faq

Do I still get a tax lien when I buy property from Michigan tax sales?
No, under the new system all buyers receive a quit claim deed. All previous title rights have been extinguished, and you own the property free and clear. Prior owners have no right to redeem the parcel from the deed sale.

The only liens that survive foreclosures are those filed by governmental agencies in relation to the environmental protection act. Individuals interested in parcels associated to Department of Environmental Quality (DEQ) liens should contact the DEQ to discuss lien amounts that may become the responsibility of purchasers.Recorded or visible easements, right of ways and deeds, and environmental restrictions also survive the foreclosure.

In the rare event that the Internal Revenue Service (IRS) has not been properly noticed regarding property on which the IRS has placed a lien, such IRS liens would survive the foreclosure process.

CAVEAT: The Treasurer has the right to cancel sales up to the time of the delivery of the deed at its sole discretion. In these instances, you would receive a refund of your purchase price and other auction charges. This is rare, but a measure Treasurers have had to utilize a handful of times when property was sold by mistake.

How long will it take to get my deed?
Deeds are executed by the Treasurer within 30 days of the sale, then recorded with the Register of Deeds and mailed to you. The time required for recording and mailing varies from county-to-county.

Do I assume any back taxes or other costs?
Individuals who purchase parcels at our auctions are responsible for the taxes that are due and payable in the year of purchase, as well as any subsequent years. taxes. In addition, buyers assume responsibility for remaining years of special assessments, beginning in the year of purchase. Buyers are not responsible for costs incurred by the local municipality during the year of the auction. All liens for costs of demolition, safety repairs, debris removal, or sewer or water charges are cancelled effective December 31. Special assessments levied through the year of the auction are included in the minimum bids. All bidders should contact city or township offices to determine if there are any outstanding bonded assessments for future tax years on the properties being offered.

[Johnny Dolittle]

Better yet if they are all side by side !

[ItchingDuck]

Go back and ask them. You will get your answers this way. My dad in Northern WI bought his home for $5000 in back taes, but the people still lived there and he couldn't get them out for 2 yrs. By then they trashed the house and he had to pay the utilities whih were enormous! He didn't have heat, electricity etc...for 2 years. But the home was his just because he paid the taxes.

Sounds like you may have gotten a great deal!!

[used2bcool13]

Good luck, nothing ventured, nothing gained. I hope it works out well for you!!
I would have done it.