Hedge fund for tax sales

Discussion in 'Trading' started by Szeven, Jul 10, 2008.

  1. Does anyone know of hedge funds or investment companies that invest in Tax sales? Im talking about the sales where you pay the taxes for someone, get paid an interest rate, and in some states have the chance of getting a property free and clear ahead of the mortgage lender.

    My thought was that if people are choosing to walk away from a massive paper loss, sticking it to the lender, their could be some deals to be had. Being a Canadian i dont have a US tax ID, and am not smart enough to know how to invest in these sales.

    Any info appreciated.
  2. You could only get a tax sale deal if the property were owned free and clear by the owner (no lien). In the current lending environment, that seems highly unlikely.

    Chances are, a bank has the title to the "walked away" property. They're not going to simply give it away.
  3. I believe in several states, if you pay someones taxes and own a tax lien, you are ahead of the mortgage lender, and in some cases can get the property free and clear of that secondary charge.