[Stephany]

...foreclosure homes, Tax sale or Sherrif sale? and which one is better? I am looking into buying a home. I know the consequences that comes with buying a home that's foreclosure and all that, I know it needs a lot of repairs and can be costly in some cases. I have seen homes as cheap as $20,000 that didn't need much to be fixed and they are not mobile homes. But I came across Tax sale and Sheriff sale I live in Pennsylvania and I am wondering if anyone can explain them to me and what is the best option and if they are even worth it.Or where I can find more information. Thank You.

[Jon Porrey]

In most states Foreclosed Homes are owned by the bank after they have purchased the mortgage back at a Sheriff's Sale. They are usually listed by Real Estate Brokers. Tax Sales normally involve buying properties at tax auctions where municipalities have taken over properties with history of unpaid property taxes. If there is a bank involved, they will usually prevail at Sheriff's sales. Tax Sales are open to the public but in most states involve vacant land although many homes will be available. Hope that clears it up a bit.

[deb s]

A tax sale is really a tax lien certificate sale. What that mean is this... the county (town/city/whatever) is owed a lot of taxes on the property. the taxes have not been paid for a long time. the taxes get paid by an auction. people bid on the certificate... basically you pay the taxes and the owner has to pay you plus interest. After a year of not collection your money from the owner...you can foreclose and auction the place..or take the title for yourself.This can be a really good deal. I know of a farm that went to certificate auction. $45,000 in back taxes. county gets paid within 30days of the auction. Well, owner never paid!! So after a year, the certificate holder took the property FREE OF ALL ENCUMBRANCES. That means that the mortgage holder no longer held the mortgage for the property! Any other liens on the property are wiped off too! The new owner got the whole place for $45,000!!! (of course the mortgage holder still went after the previous owner for their money) That owner lost the property because he was stupid and didn't believe the county could do it.So.. you would need to do a HUGE amount of research. go to the various places where the auction is held (usually on the property the lien is for) and bid. You need cash to pay the taxes right away. Then, wait to see if you get paid back. If the property has any real value, the owner isn't going to lose it this way.