Six deals, start to finish

A 3-bed brick ranch in a stable Macon neighborhood comes up for non-judicial foreclosure. On paper it looks like a dozen others on the list.

Chain of title clean back to the current security deed. No senior mortgage, no IRS or federal tax lien, no judgments. Title risk: LOW. The foreclosing firm reliably proceeds.

Estimated after-repair value sat comfortably above the recorded balance; only light cosmetic rehab needed. The recommended max bid left a healthy margin.

The investor bid within the recommended max and won — taking immediate title, because non-judicial sales carry no redemption period.

A larger home on the same list draws a crowd — the recorded debt looks like a steal against the home’s value.

Two problems. A recorded IRS federal tax lien against the owner, and a second security deed. The foreclosure was on the second-position deed — so the senior mortgage and the federal lien would survive the sale and follow the buyer. Title risk: high. Recommendation: do not bid.

Add the surviving senior debt to the winning bid and the “steal” was actually above the home’s value.

A bidder without research saw only the low apparent entry price, won — and inherited tens of thousands in senior liens. The bargain became a loss. Our member passed.

A court-ordered in-rem tax sale. The investor wins the property for not much more than the back taxes owed.

Clean court order; taxes and parcel confirmed. In-rem sales carry a 60-day right of redemption for the owner of record only — and it pays no premium: a redeeming owner simply triggers a refund of the winning bid. This owner had active family.

Worst case: the owner redeems and the investor gets the bid refunded — two months of tied-up capital, nothing earned. Best case: keep a property bought for back taxes. That math only works if you actually want the house.

Within the 60 days, the owner’s family redeemed — and the investor received a refund of the bid, nothing more. Under O.C.G.A. § 48-4-81 an in-rem redemption pays the investor no premium.

Another in-rem sale, similar profile — won near the tax amount.

The owner was deceased and the estate inactive; redemption looked unlikely, but the 60-day clock still had to run. In-rem foreclosure clears most prior claims.

If no one redeems, the investor finalizes and holds a property for a tax-sale basis far below market value.

The 60 days passed with no redemption. The investor finalized and took title.

A sheriff’s-levy (Fi Fa) sale. The investor buys a tax lien — not the property — for the back taxes.

A 12-month right of redemption at 20%. The owner was active and the home occupied — redemption likely.

If redeemed: 20% return over up to a year. If not: the path opens to foreclosing the redemption and taking the deed.

Around month nine, the owner redeemed — paying the lien plus 20%.

Another levy purchase at a deep discount — back taxes on a vacant property.

The owner was unreachable and the property abandoned — redemption unlikely. We mapped the 12-month clock and the steps to bar the right of redemption.

Hold the lien 12 months; if no redemption, foreclose the redemption right and take the deed for a fraction of value.

Twelve months passed with no redemption. The investor barred the redemption and took title — a property acquired for pennies on the dollar.