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What You Need to Know About Buying Foreclosed or Back Tax Properties in Atlanta, GA

Investors can buy houses for a lot less than their market value by buying properties with tax liens or unpaid taxes. These homes, which are often sold because the owners didn’t pay their taxes, offer buyers a unique chance if they are willing to go through the process. This guide tells you everything you need to know about finding, buying, and making money off of tax foreclosed homes in Atlanta. It includes information about homes that are behind on their taxes near me and houses for sale for back taxes.

What are tax liens and homes that have been foreclosed on?

The government puts a lien on a property when the owner doesn’t pay their property taxes. These homes with tax liens could be sold through a tax foreclosure process. In Georgia, if the owner doesn’t pay property taxes, the local government can legally sell the property at auction to get the money back.

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Why You Should Buy Houses with Tax Liens

  1. Buy Homes for Back Taxes: You can buy homes for the amount of taxes owed, which is usually much less than their market value.
  2. Low Initial Investment: Many tax lien properties are sold for much less than their market value, which means you don’t have to put down a lot of money up front.
  3. Less Competition: Homes for sale with unpaid taxes often get fewer bids than homes for sale in traditional real estate markets, which gives smart investors more chances to buy.

How to Find Homes in Atlanta with Unpaid Taxes

The first step to buying homes at a big discount is to find homes that are behind on their payments. Here are some ways to find houses near me that are behind on their taxes:

1. Look at public records

Local tax offices, like the Fulton County Tax Commissioner, publish lists of homes for sale that are behind on their taxes. These lists have important information like:

  • The address of the property
  • The amount of back taxes that are owed
  • Status of the tax lien

You can get these records online or by going to the local courthouse. Some counties even hold regular public auctions to sell land and houses that have unpaid taxes near me.

2. Go to auctions for tax liens and foreclosures

After you find properties, the next step is to go to a tax lien auction. People who want to buy the house at these auctions bid on the right to pay the back taxes. The person who bids the most wins a tax lien certificate. If the taxes are not paid, this could lead to foreclosure.

How to Make a Bid at a Tax Auction

  • Look up the market value of a house for sale that has taxes due.
  • Be ready to pay with cash, a cashier’s check, or another form of payment that is accepted.
  • Know that you are bidding on the lien, not the property itself.

You can take full ownership of the property if the original owner doesn’t pay the taxes within the redemption period.

There are different kinds of tax sales in Georgia.

In Georgia, there are two main types of tax sales. Both can lead to buying homes for back taxes:

1. Tax Lien Sales

The local government sells a lien on the property for the amount of back taxes owed in a tax lien sale. The buyer of the lien can start foreclosure proceedings if the homeowner doesn’t pay the taxes and interest within a certain amount of time, usually one year.

2. Tax Deed Sales

Tax deed sales give full ownership of a property to the highest bidder at auction, but they are less common in Georgia. There is no redemption period. This method is great for investors who want to buy properties outright because they can take possession of the property right away.

How to Find Land That Hasn’t Paid Taxes

The tax lien process can also help investors who want to buy undeveloped land. In Georgia, many counties put up for sale land that hasn’t been paid for because the owners haven’t paid their property taxes. Buying land with unpaid taxes is the same as buying homes that are behind on their taxes, but it can give you raw land that could be a good long-term investment.

How to Find Land That Is Behind on Payments for Sale:

  1. Look through tax lien records to find land for sale in your area that is behind on its taxes.
  2. Go to tax auctions for land that hasn’t paid its taxes.
  3. Make sure there are no zoning or environmental rules that could lower the value of the land.

Buying homes that are behind on their taxes is risky.

Buying houses with tax liens can be very profitable, but it’s important to know the risks:

  • Redemption Period: Homeowners in Georgia have up to a year to pay off their taxes and get their property back. You won’t own it during this time, but you will earn interest.
  • Condition of the Property: Many homes that are sold after a tax foreclosure are sold “as-is.” It can be hard to get an accurate estimate of repair costs without being able to get inside.
  • Competing Liens: Make sure the property doesn’t have any other liens, like mortgages or HOA fees, that could make your investment more difficult.

Tax Sales

A tax sale is when the government sells a tax lien on property that the owner hasn’t paid their property taxes on.

The Fulton County Sheriff’s Tax Sales happen every month on the first Tuesday from 10 a.m. to 4 p.m. (except when the first Tuesday of the month is a legal holiday, in which case the sale happens the next business day).  The courthouse steps at 136 Pryor Street SW, Atlanta, GA 30303, will be the site of the tax sales. 

The South Fulton Neighbor newspaper publishes a free list of homes for sale every Wednesday for four weeks before the Tuesday Sale date. The owner’s name, a description of the property for sale, and the amount of tax due are all listed in each ad (O.C.G.A. § 9-13-140; 9-13-141; 9-13-142).

Each month, each county in Georgia has its own time and date for tax sales.  Below are some helpful links to nearby counties.  You can also look up “Tax Sales In Georgia” to find out more.

How to Get the Most Money from Homes for Sale That Owe Taxes

There are a few ways to get the most out of your investment if you buy a house at a tax lien sale or through foreclosure:

1. Fix up and sell

Buying tax houses for sale, fixing them up, and then selling them for market value is a common strategy. By carefully planning your budget and making smart changes, this method can make a lot of money.

2. Rent out the property

Renting out homes for sale back taxes can be a good way to make money over time. Because Atlanta has a strong rental market, this is a good choice for investors.

3. Keep for Growth

Real estate in Atlanta tends to go up in value over time. Keeping houses for sale for back taxes near me can raise their value, which means you will make more money when you sell them.

Conclusion

Buying homes with tax liens and buying tax-foreclosed homes in Atlanta are two great ways to get properties at lower prices. If you do your homework, plan ahead, and bid strategically, buying homes for back taxes can be a very profitable business. If you want to buy homes for back taxes to flip, rent, or hold onto for a long time, knowing how to do it right will help you get the most out of your investment.

Visit the Fulton County Tax Commissioner’s website or call your local tax office for more information about upcoming tax auctions or to see public records on properties that owe taxes.

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Kelly Sollinger

We started Georgia Fair Offer because we wanted to spend more time together as a family and do what we love. If we can improve someone’s situation along the way while doing what we love it just makes everything that much better. Improving our communities one door at a time.

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