A number of investors are investing in Main tax deeds foreclosure properties at tax deed sales. When property owners default on paying their property taxes, the county forecloses on them and in return auctions the properties to investors for substantial discounts. When you purchase a Maine tax deed foreclosure property, all you are paying for is the back taxes, fees and costs. While short sales and foreclosures are also good investments, tax deeds give you an opportunity to purchase properties for pennies on the dollar. There are 16 counties in Maine, and if you are interested in purchasing a tax deed, you should contact the county where you want to purchase a property. You will find that properties at Maine tax deed auctions are auctioned for as much as 50% of their market value. You should do your due diligence though and check comparable home prices in the area so you know you are getting a good deal on your tax foreclosure property. A local Realtor can provide you with a report on recent home sales.
You can expect that your investment is safe when you purchase a Maine tax deed foreclosed property because the government is selling the property. The municipality wants to keep investors happy because they need them to purchase the tax deed foreclosure properties. The municipality benefits because they use the money they receive from the sales to provide public services such as police, fire and schools. The great thing about investing in tax deeds is that they are never affected by real estate cycles. Auctions are conducted by competitive bids. Bids are awarded to the highest bidder who pays the delinquent property taxes and fees. Smart buyers are taking advantage of the great bargains that can be found by buying Maine tax deeds at tax deed auctions.
Other Foreclosure Investment Opportunities
If you are interested in buying foreclosures other than tax deed properties, you may also want to purchase a Maine foreclosure auction sale property. The auction sale process is slightly different because the lender is the one who is the owner of the property not the county. The home is being sold for market value or slightly less. While the discounts are not as large as tax deed sales, there are more homes to choose from, and the homes are still good bargains. Bidding at a foreclosure auction goes quickly so you should do your homework first to make sure you are paying the right price for the property. You will need cash to pay for the property. Keep in mind that you are required to pay off any liens on the property as well as eviction costs to evict former tenants or owners. Also, properties are sold as is so if you can have an inspection, you should do so to find out the condition of the property. Many foreclosure properties are in bad condition. You need to budget for repairs when bidding as well. The great thing about purchasing a foreclosure auction property is you are getting a property with built in equity that you may not otherwise be able to afford. Investors are purchasing foreclosure auction sale properties to rehab them, and either lease them out or hold on to them and then sell them later when the market rebounds.
REO’s are bank owned properties that did not sell at foreclosure auctions. These homes are also good bargains sold at discounted prices because banks want to get rid of their inventory since they are not in the real estate management business. REO’s are listed with local Realtors. You can make an offer through either the listing agent that represents the bank or your own real estate agent. You will be able to inspect the property and obtain title insurance. You don’t need cash to purchase the REO so you can obtain financing if needed.
Whether you decide to purchase a Maine tax deed property, foreclosure auction sale property or REO, investing in Main foreclosure properties is a good idea right now because there is a large selection of inventory to choose from, homes are affordable and interest rates are at historic lows.