Purchasing an Abandoned Home with a County Back Tax Notice: Your Options and Steps

Have you ever come across a property that seems to be abandoned and caught your eye? However, if there is a county back tax notice on the property, the situation can get complicated. In the United States, failing to pay taxes can lead to the county taking control of the property and selling it to recover the owed taxes. This article will guide you through the process of purchasing an abandoned property with a back tax notice on it, including exploring options and necessary steps.

Understanding the Ownership Process

In cases where taxes have not been paid, the county may take the property over and sell it. This is a common practice, and it is important to understand the process of how it works. If the property has been forfeited to the county, the tax collector will have detailed information that you can review.

Adverse Possession: Exploring Your Options

If the property has truly been abandoned, you might consider the concept of adverse possession. In many states, if a trespasser meets certain conditions for a period of time, they can claim ownership of the property. It is essential to understand the requirements for adverse possession in your specific state.

Requirements for Adverse Possession

Move in and openly occupy the property: The trespasser must move into the abandoned house, pay all necessary bills in their name, and maintain the property.

Pay property taxes: The lifelong tenant must ensure that taxes on the property are paid as they come due.

Use the property openly and obviously: The individual cannot hide their occupation of the property and must continue to openly and obviously use and occupy the property for a minimum number of years required by the statute governing adverse possession. This period varies by state.

County Auction Process

Another option is to attend the county auction if a property has been abandoned and the taxes are left unpaid. The county often holds a public auction, which is advertised in local newspapers to expose the property to the public. In an auction, the lender typically bids the outstanding mortgage balance to protect their equity. If the property is free and clear of a mortgage, the county proceeds with the auction.

If you are the successful bidder, you must be prepared to have cash or have access to cash within 24 hours, as required by the auction terms.

Direct Negotiation with the Owner

One of the most straightforward approaches is to contact the owner directly to see if they will accept an offer to cure the arrearage on property taxes. This process can be time-consuming and may require legal representation, but it is often more reliable than waiting for a county auction or attempting adverse possession.

Conclusion

Purchasing an abandoned home with a county back tax notice requires a deep understanding of the legal processes involved. Whether you explore adverse possession or attend an auction, it is crucial to familiarize yourself with the specific regulations in your state. By taking the appropriate steps and seeking professional advice, you can increase your chances of successfully acquiring the property of your dreams.