As some states and local governments become more insolvent, they are finding ways to squeeze more money out of tax payers and property owners, including unsuspecting tax deed buyers. This is something that you need to be aware of if you purchase tax deeds in Indiana from out of state. I want to thank Jim for providing this warning to investors from his own personal experience.
“I buy tax deeds in Indiana because the returns can be very sweet.
In December ’11, I closed on an abandoned house I bought in Hammond, Indiana at the Lake County Tax Deed auction held in September 2010. Paid $3000, sold for $9,000 netted about $1600 after fees/expenses.
However…what Hammond did was hit me with all sorts of high fees for taking care of the house between the time I bought it and got clear title — about 13 months. Those fees include things like boarding up the windows, mowing the grass, etc. None of these fees came up in the title search except for $534, which I thought was semi-fair. Continue reading →
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