Government
Tax Foreclosures May Turn Out to Be Bargain Deals
By Kevin Simpson
If prudently handled government tax foreclosures may turn out to be
bargain deals. Foreclosures are nothing new. From time immemorial it is a
tool in the hands of the creditor to realize unpaid dues. In this case the
government is owed money by the house owner in the form of taxes. Having
defaulted the owner has to be foreclosed upon. The government sells the
house to realize the tax dues.
A much known acronym in the mortgage parlance is PITI. P equals to
principal, I to interest, T is for taxes and the concluding I is for
insurance. These are the four pillars whose length and breadth the
prospective buyer must test before inking any deal. These are the basics
and fundamentals of house ownership.
The mortgage in general takes care of the principal and the interest on
it. However the insurance is a very important part. The lender will not
finalize the mortgage loan without looking into the matter of insurance
coverage.
Many people trip on the T - the taxes part of the deal. It is often
that while focusing on the mortgage, a person tends to ignore the taxes
due to the government. Neglect often leads to government tax foreclosures.
The government forecloses to realize dues and sells the house.
In the grim economic climate of today wherein jobs are vanishing and
foreclosure numbers are increasing causing bankruptcy to rear its hated
head, many house owners are unaware that there is another way of losing
the house that is the home - by government tax foreclosures. The
government has the right to note a tax lien against the title of the
property because of not paying taxes (either personal or real estate
taxes). If these, together with penalties and interest, are not paid
timely then like any other holder of a lien, the tax authority of the
government can foreclose on the unit and sell it to clear tax dues.
The procedure for doing government tax foreclosures varies from the
steps taken by state and the federal governments. These also vary from
state to state.
The IRS of the Internal Revenue Service has the complete power at the
federal level to note a tax lien against any property whose taxes have not
been cleared. The notice of Federal Tax Lien will be posted against the
related property only after due assessment by the IRS. The taxpayer is
notified and is warned to clear all dues within a specific time -
generally ten days.
For the discerning buying these government tax foreclosure units can be
profitable. The first hurdle is to locate them. This can be overcome by
browsing on the Internet. These can be bought pennies on the dollar and
that turns out to be bargains. It is better than opting in the traditional
markets or general foreclosure auctions. The number of government tax
foreclosure units is much less than those listed in ordinary foreclosure
sites. Another plus point is that in general the condition of the houses
under government tax foreclosure are in a much better condition than the
general lot of foreclosures.
Search
government REOs or get more information on
REO homes at
USREOProperties.
Article Source:
http://EzineArticles.com/?expert=Kevin_Simpson
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