Zero Risk Real Estate: Creating Wealth Through Tax Liens and Tax Deeds

The Costs of Foreclosure and Possession

While the thought of having to initiate a foreclosure action seems daunting, it’s really not as difficult as you might think. However, it is a process that needs to be done correctly, since any little mistake can cost you a great deal of time and money, and it may even force you to start over from scratch.

That being said, I will reiterate my point of finding a real estate attorney who can help you with this. I use one every single time, and I don’t look at it as an expense but more of an investment in peace of mind. The process can vary greatly from state to state, but the objective is the same: making sure that you get legal and physical possession of the property.

To obtain legal possession from a tax lien position, you will likely incur initial expenses of between $400 to upwards of $2,500. This will depend on who has to be notified and through what channels. Legal postings can cost a lot, but the newspapers that run these postings seem to have a monopoly on the market. The court will only recognize the legality of the posting if you use one particular newspaper. I don’t know why, because it is normally a business newspaper that only a few thousand people may read, while the local paper may be read by tens of thousands. But some things you just can’t argue over, and you have to accept the system as the cost of doing business.

If you’ve received the property through a tax deed sale, then you may not have to foreclose at all, but be prepared ...