What is Deed Grabbing? How to Get a Tax Sale Property Without Attending the Auction
If you are interested in or working in the real estate industry, you’ve probably heard the term “deed grabbing” at some point. Deed grabbing is the method of obtaining tax sale property without attending the auction – by approaching the owners of tax delinquent property just before they are about to permanently lose the property, and offering to buy their home for a fraction of its value.
The term “deed grabbing” was probably coined by the large tax property investing companies who buy these properties at tax auction. Deed grabbers and big tax property companies aren’t friends. Often, deed grabbers grab deeds right out from under these big tax sale companies, just before they are about to foreclose. They also call deed grabbers “deed pickers” and “bottom feeders.” The big tax companies, needless to say, are sore losers who don’t care much about the tax delinquent owner and mostly care about their bottom line.
Since there is still a year or so after the property has been “sold” at auction before the big tax investing company can foreclose (sold in quotes, because it isn’t really sold that day), this is the best time to approach the tax delinquent owners. At this point they much sell, and they know it. Many have already moved on at that point, and are happy to sign their deed over to a deed grabber just to avoid the big company getting it. You can grab deeds during this time for as little as a few hundred dollars
Often, deed grabbers are the last source of help for the delinquent owners, and without the deed grabber coming and buying their home for something, the owners would lose everything. It’s a win-win situation at that point. That’s how to get tax sale property without attending the auction while at the same time helping out the owner. Don’t let the fact that these big companies call you a “deed grabber” stop you. They can go eat paste!