How does buying a house through a Tax Sale work?

My husband wants to buy a house through a tax sale he says at the beginning of the year at the courthouse you can get a list of houses coming up for sale, he says that you can get a house VERY cheap like 600 to 5000.00 is tht true? BUT do you have to pay the bid amount and the amount of the taxes owed on the property or does the bidding price cover them? Do you have to pay any additional fee other than what you have bid the property to like a regular auction how you pay only what you have bid, how do these tax auctions work? people he works with go to these every year and have bought houses but my husband wont ask them about it any more in depth cause he doesnt want to look dumb like he doesnt get it...But could someone PLEASE explain this all to me b4 we would do it and get stuck paying more than we think we have to? Also is this wrong of us to do? i feel like i am stealing someones house, my High school friends parents house went up for tax sale and i felt bad but he told me the didnt care that they didnt want the house anymore. Help i need alot of info on this subject, i dont want to buy someones house and have them come back and kill my husband and our kids in the middle of the night for it! HELP !!!How does buying a house through a Tax Sale work?
First, people who do not pay the taxes and have their houses auctioned have already been given every opportunity to make good on their taxes and they have chosen not to (for whatever reason).



Second, it is not often that the houses go for the back taxes. Remember, like any other auction, you are bidding against other people who are thinking the same as you. This tends to make the prices increase to about or just below real market value.



If you and your husband decide to bid, remember that most jurisdictions require full payment in cash, usually on the spot or within say 48 hours. That means that if you bid $25,000 for a $400,000 house and win, you may need the money right then and there (check with the tax office in your town or county).



Finally, don't forget to inspect the property - you really don't want to buy a house on 2 acres only to find out that due to rising water levels, only about 1/2 acre is above water and the house is threatened or falling down (these sales are as is).



If you don't want to buy the property at auction, you may be able to participate in tax lein auctions, in which you actually buy the tax arrears and place a lien on the property (the owner then pays you interest or after a certain amount of time, you may be able to foreclose and take control of the property).



Either way, do your homework, talk to the folks in the tax office (see if they have any background literature) and be careful and prepared.How does buying a house through a Tax Sale work?
You need to be VERY careful when purchasing 'tax deed sales'. They are not what most folks think they are. In many states (Louisiana is horrible), the previous owner has up to THREE years to pay the tax default and reclaim ownership of the property. As well, if the current owner abandons the property for taxes unpaid, you MIGHT end up with a SuperFund Cleanup property. Guess who gets the bill for THAT ?



Your loving husband need to learn that, while there are SOME hot deals in this type of activity, it is NOT a place for the novice. You need to know EXACTLY what you are buying, and whether is is free of liens and other issues.



Tell your hubby to do a LOT more investigating before he jumps into this.