| Tax is an integral part of every economy and | | | | process to recover the tax liability. The government |
| Property Tax is the duty that Government levies on | | | | tax lien is published in the local newspaper through a |
| the value of the property which is to be paid by the | | | | public notice inviting prospective buyers to bid in the |
| Homeowners. Real Estate or Property Tax is the | | | | auction process. |
| legal obligation of all homeowners and any violation in | | | | The auction process in Government Tax Foreclosure |
| paying the same shall result in foreclosure by the | | | | starts with the tax liable to be recovered on the |
| government. | | | | property which is generally lower than the price of |
| Foreclosure is a serious problem for any homeowner | | | | the property. This makes the property attractive for |
| as the owner has to vacate the premises | | | | buyers as the fresh price is almost 40 to 60 % |
| immediately after the orders from the court and | | | | cheaper than the prevalent market price. This shall |
| loses credibility for several years which disallows him | | | | come as a bonus to the buyers as the same |
| to avail credit from other financial institutions. | | | | property can be used to sell and gain profit. |
| Government Tax Foreclosures is grave for most | | | | Buyers of Government Tax Foreclosures should take |
| owners but prove a boon for many first time buyers | | | | care of few things before closing the deal for the |
| and investors of real estate. The investors and | | | | defaulted property. These include: |
| buyers are able to purchase the property at | | | | 1. The Buyers should check for the market price of |
| cheapest rates which makes them run for | | | | the property and compare with the auction price |
| Government Tax Foreclosures. | | | | whether it can save them some money. |
| The process for Government Tax Foreclosure starts | | | | 2. The Buyers should inspect the property before |
| when the homeowner defaults in making tax | | | | purchasing internally and externally which shall help |
| obligatory payments on the real estate which comes | | | | them in estimating the actual cost of the property |
| under assets and the property is foreclosed. Once | | | | against the market price. |
| the property comes under foreclosure, the | | | | 3. The Buyers should check for further liens and loans |
| homeowner is given a chance to repay the tax | | | | on the property which shall transfer to the buyer if |
| liability by issuing him a government tax lien which is | | | | any. |
| done by the internal revenue service. In case the | | | | 4. The Buyers should make available 10% of the total |
| owner fails to pay out the tax liability, the court | | | | price which is to be paid immediately after the |
| indulges and helps the tax authority in auction | | | | auction. |