Expert: liznarr - 7/16/2009

Question
I understand that you can pay the delinquent taxes owed on a piece of property. When the owner pays you back, he must give you 15% interest on the money. Is this true? How can I buy the taxes owed, so to speak on property? i live in Michigan...

Answer
Bob,

I assume your question relates to purchasing properties at a delinquent tax sale.

When properties are sold for delinquent taxes owed, it is my understanding that the successful bidder is usually the one who charges the least amount of interest on the delinquent tax amount which the successful bidder pays at the tax sale.

The “former” owner has a statutory period in which to repay the successful bidder the delinquent taxes, plus interest, and reclaim the property.

To find out about procedures for such a purchase, you can check with the County in which the tax sale is offered for their specific rules on delinquent tax sales, as different counties and states can all have varying rules and/or regulations for delinquent tax sales.

Good luck to you, and feel free to write again if you have additional questions.

Regards,
Elizabeth