Tax liens

In case if one has no means to pay the taxes required, the tax foreclosure property is formed. We may define the tax foreclosure homes as liens on homes. Despite tax lien is more substantional then standard mortgage. It means that tax lien is always of higher priority then mortgage. But it is important to pay attention on the fact that IRS (Internal Revenue Service) liens of local authorities still exist and it may become the responsibility of investor.

The property taxes are collected all over the USA. The mentioned taxes are very important because of its essential role in forming the county budget. If county lacks of these taxes income it may lead to financial crisis in region.

To minimize the risk state authorities worked out such a way: a foreclosure is formed automatically and in case of bad debt this debt can be always sold to investors. In this case each participant gains specific advantages: county fulfill the budget, problem borrowers prolong the payment period, and investor invests his money in high profit low risk project. Use this link to read more about investing in foreclosure property

Find REO or short sale agent

To buy a REO home, the foreclosure which belongs to bank, one needs to choose the particular house he is interested in. This is the main reason to create detailed lists of REO properties available. As a rule dealing with foreclosure allows buyers to get a house, paying for it less, then normal market price.

But it happens, that prices in such kind of lists are too high or too low or maybe exactly right. If you buy real estate on foreclosure market for the first time, it is highly recommended to find a professional agent. Agents have priceless experience of dealing with REO and knowledge, which will help you to benefit from this operation. The agent should work having your interest as the highest priority.

How To Find A Professional REO agent? Try to find an agent who is busy, not one who has three or four client per year. If an agent is busy with plenty of deals it shows that he probably has a wide range of connections with sellers and buyers of REO property.