Scarlett O’Hara in Gone with the Wind faced financial trouble when taxes on her home rose beyond her means. Today, tax sales occur when people fail to pay taxes, resulting in tax lien or tax deed sales where people can acquire property by paying back taxes. Tax deed sales can offer opportunities to buy property at below-market costs, but some people may have moral qualms about profiting from others’ misfortune.
Scarlett O’Hara, despite working hard to pay the taxes on her beloved home, Tara, ends up in deep trouble in Gone with the Wind when the taxes rise to an amount far more than she can afford. This was a practice used occasionally among backpackers and thieves, after the Civil War; they raised taxes above what was affordable for homeowners to purchase their property by paying those taxes. If Scarlett had not stolen her sister’s fiancé and married him, she would not have had the money to pay this new tax, and the property would have been sold for tax sale.
Today, raising taxes arbitrarily is not common. However, failure to pay taxes can cause the government to do everything possible to recover the amounts owed. This results in two types of tax sales, the tax lien sale and the tax deed sale, and a number of different ways that people can acquire property liens or deeds simply by paying back taxes (or a little bit). more) on a property.
A tax sale called a tax lien sale occurs when the government sells the right to assess taxes and take additional steps, such as reclaim the property, if a person is unable to meet their back taxes. This can occur on most physical property, such as cars, boats, or homes. Buying a lien can mean you are given steps like garnishing people’s future wages or placing a lien on the property and selling it at a later time to pay for your purchase. If the taxes are still not met, you acquire the right to lien the property.
Equally common is the tax sale called the tax deed sale. This is when the government to which taxes are owed sells property to recover its tax payments. For people who own their homes, or have an equitable interest in them, it’s a good idea to avoid tax sales that take away their property. Sufficient notice is usually given that people can sell property on their own, pay back taxes, or transfer this obligation to a new owner, and still recover their own estate.
On the other hand, when a government institutes a tax deed sale, in many cases they have no obligation to sell the property for more than the tax. Many people have made significant gains by paying property taxes and thus acquiring such property at well below market cost. Since many have turned this into a viable business, there may be a number of people who show up at a property auction or bid online for cheap property.
The more people make an offer, it usually means the prices go up and ultimately they may not be such great deals. Sometimes, however, there is not much interest in the property, and people can buy it for extremely low rates. It should be noted that some people have moral qualms about making money off the misery of others, which is clearly the case with many tax sales situations, especially when the taxes owed were very low and they might have found themselves with a small charity. .
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