Tax deed sales business will surely reach a tipping point in the very near future. Events in the foreclosure field are fast juggernauting towards causing a massive tipping point that will do a number of the following things.
- Cause banks to lobby state and federal governments to expedite the foreclosure process by removing the judicial hurdles they are now experiencing.
- Increase in the volume of foreclosed properties being offered at public auction, for a quicker turnover.
- Increase in the number of foreclosed properties that are residential, with a house or condo, as opposed to just a vacant land.
- Increase in the volume of properties that are tax defaulted and slated for a tax deed sale.
- Increase in the opportunities to invest in valuable residential properties for a fraction of the real market value.
Banks must pay fees when attempting a foreclosure through the courts. Banks try to avoid this is much as possible. This is why they are seeking fast-track legislation, to avoid the fees.
The hope the banks have is to sell the expedited foreclosures as quickly as possible at a public auction before the property is due to be sold at a tax deed sale!
It is this component that will blindside the banks of the property is not sold within the retention period, which is usually two years.
Banks rarely, if ever, pay the property taxes. If the taxes are not paid the counties will sell the property at a tax deed sale.
No matter what the banks to sell properties before it reaches the tax deed sale, they will not be able to sell all the at a foreclosure auction, and many will be sold out from under them.
When the volume increases, and time runs out, the tax deed tipping point is reached, and opportunities for the tax deed investor will become absolutely fabulous!
