Buying foreclosed homes in Texas: tax issues to consider

A real estate agent can help you avoid buying foreclosed homes in Texas with tax issues

Buying-foreclosed-homes-in-Texas-tax-issues-to-consider-1Foreclosed homes are often great bargains. It is possible for you to find Texas foreclosures for thousands of dollars less than the market price of comparable homes of the same age and condition. Nonetheless, when buying foreclosed Texas homes, tax issues can negate your savings. This makes it important that you be aware of possible issues like delinquent property tax on the home.

When buying foreclosed Texas homes, tax issues typically arise when you fail to research the property title before you buy. When you buy a foreclosed home, the bank may satisfy liens and then sell the property with a clear title. But this is not always the case. If you are buying foreclosed Texas homes through a pre-foreclosure sale or short sale, tax issues may not be cleared by the owner because the owner. The property title may also have homeowners association liens, mechanic’s liens or other types of liens.

Buying-foreclosed-homes-in-Texas-tax-issues-to-consider-2Most tax problems associated with foreclosed homes happen when you purchase a home without help from a real estate professional or attorney. You need to be certain the title is clear and all real estate taxes are paid or factor the cost of liens into your purchase price. A competent real estate professional or attorney can assist you in finding encumbrances when you’re buying foreclosed Texas homes. You can also buy title insurance to ensure that any problems with the title don’t become a major issue in the future.

Essentially, when buying foreclosed Texas homes, tax issues that exist will have to be taken care of by someone. If taxes are not paid before you take possession of the home, you may have to pay them. To get the help of a real estate agent in your area, go to RealtyNow.

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