Are government tax foreclosures auctions a good way to find cheap properties? I

[jtempleton88]

Are government tax foreclosures auctions a good way to find cheap properties?  If so, where do I look?  ?

[AJ]

Your county should have a list of properties and when auction will be.
Remember these properties usually have a minimum amount. The bids are usually closed bids so you don't know what others are bidding.

[A_D]

You'll have to check with your local area to see what the process is there.  My comments are based on policies in Austin, TX.

I suggest you "google" tax foreclosures, your town, your state.  It should get you to sites where you can find information about the process, or contact info. so you can educate yourself about the process.

Remember at a tax foreclosure, you are just buying the taxing entities interest in the property.  If there are other liens on the property, you will *inherit* them.  So, you want to make sure what you are getting into.

Many times, if there is a bank lien involved, the bank will have a rep at the auction to bid up the price to cover their lien.

You should do your homework ahead of time to know what is going on with the property.  If the property is vacant, you should try and inspect the property prior to the auction. 

Usually you are committed to buying the property if you win the bid.  There is no "out" because of the condition. 

Also, there are usually requirements to have certified funds for either the entire amount of your bid, or a minimum amount and then you have a short period of time to pay for the rest.

Again, you should make sure you know what you are getting into before you learn the hard way.

As always, I recommend consulting with a real estate professional.  I don't know many real estate agents that handle these types of sales, but your area may have some.

Good luck