Expert: Dick Dennis - 8/16/2010

Question
I know there is a way to buy property for delinquent taxes before the city takes it over for auction at fair market value.  It seemed like I could pay the tax and then pay it for so many years and if the owner never contests it I can get the deed. Is there a way to do this?  I live in Wagoner Oklahoma and am trying to find some starter property for my adult children.  thanks

Answer
Let me unconfuse you, Mae. In Oklahoma they use tax lien certificates. The county conducts a sale of those certificates and the winning bidder is supposed to be paid back what he paid for the certificate(s) plus approximately 1.5% monthly interest as penalty if the owner decides to pay the taxes. Once the bidder has purchased the certificate, the owner of the property has two years to catch up and make everything up.

I recommend you talk to the people down at the assessor/tax collector's office and find out exactly what you must do. It is not as easy as you want it to be.

What you are confusing it with is adverse possession. Each state has their own laws in this, but a certain amount of time must pass and and the owner does not not contest it after being given notice by the person who intends to take the property. And that person must have paid the taxes for that amount of years. (Do you see how you may have confused the two ways of taking over property?)

If you would like to help your children get started with real estate, you may want to delve into buying property in probate. That is probably the single most profitable area of real estate investing.

Or you can look into some foreclosures that might be around your area. You may want to find yourself a very knowledgeable real estate agent or broker to help you find properties for your children. I do wish you well.



Dick Dennis
dixiedee3@aol.com