| You might have seen all of the late night infomercials | | | | · There may also be other governmental liens |
| telling you how easy it is to earn money. All you have | | | | (such as weed liens or demolition liens) that the |
| to do is buy their product, and after you buy their | | | | investor must pay off when attaining title to the |
| product then buy another one. The truth is that these | | | | property. These are not part of the lien sale and |
| same infomercials are selling educational products and | | | | remain even if the lien holder acquires the property. |
| not a true investment program. This article is designed | | | | · If the owner of the property declares |
| to introduce you to a couple of concepts that you will | | | | bankruptcy, the bankruptcy court may lower the |
| need to have to start investing in Tax Liens and | | | | interest rate to be paid, or may discharge part or the |
| Deeds. After you have read the entire report (not | | | | entire lien, leaving the lien holder with nothing. |
| included in this article) you will be able to walk into any | | | | The Process for Lien States |
| courthouse in the United States and have a successful | | | | In a tax lien state, the lien is offered to prospective |
| plan of action that will create earnings over 12%. | | | | investors at public auction. Most auctions are held in |
| The Story | | | | person; however, Internet-based auctions (especially |
| There are thousands of homeowners who are late in | | | | within large counties having numerous liens) are |
| paying their property taxes. But the counties they live in | | | | becoming popular. The investor must wait a specified |
| need the money now. Everyone that works for the | | | | period of time (referred to as the "redemption period"), |
| county must be paid. They cannot and will not wait for | | | | during which time the property owner (or someone |
| their checks while the people ignore their taxes. All of | | | | with an interest in the property) may repay the lien |
| the services that you expect like water, and police and | | | | with interest. Usually the lien holder is not permitted |
| fire protection have to be paid. So, if you as an | | | | during this period to contact the property owner (or |
| investor will pay these back taxes now, then the | | | | anyone else having an interest in the property, such as |
| county will take care of you. When the homeowner or | | | | the mortgage holder) to demand payment or threaten |
| mortgage company finally get around to paying the | | | | foreclosure, or else the certificate can be forfeit. |
| taxes the county sends you the check for what you | | | | The Process for Deed States |
| have paid plus interest and penalty fees. What if the | | | | The minimum bid is generally the amount of back |
| homeowner does not pay his back taxes? 99 out of | | | | taxes owed plus interest, as well as costs associated |
| 100 homeowners will pay their taxes but you might just | | | | with selling the property. In the event the property is |
| end up with the property. | | | | not purchased, title reverts to the government. The |
| Tax Liens | | | | government may then attempt to sell the property at a |
| A Tax Lien sale is the sale, conducted by a | | | | public auction and/or offer it for sale in a private |
| governmental agency, of tax liens for delinquent taxes | | | | transaction. In most cases, the jurisdiction will only |
| on real estate. It is one of two methodologies used by | | | | provide a quitclaim deed at the sale, which is usually |
| governmental agencies to collect delinquent taxes | | | | insufficient for title insurance. Therefore, a "quiet title" |
| owed on real estate, the other being the tax deed | | | | action must be filed in court to obtain an insurable title. |
| sale. | | | | The Process |
| Tax Sales Challenge | | | | · Find your counties web site |
| · Payment is usually required at purchase | | | | · Find Properties that are delinquent in paying |
| ·There may be rules to protect the lien holder's | | | | their taxes |
| right after your purchase. Failure to comply with these | | | | · Find what the County Assessors has valued |
| rules can make your lien worthless. | | | | the property |
| · In many states further actions must be taken | | | | · Find out detailed information on the property |
| to protect the lien holder's rights after purchase of a | | | | (i.e. how many bedrooms, bathroom, sq footage and |
| lien. Failure to comply exactly with these requirements | | | | more) |
| may make the lien worthless. | | | | · Look at Property |
| · Tax liens on "choice" properties are quickly | | | | What Do You Need to Get Started: |
| purchased by major institutional investors | | | | Information |
| · Unlike a "Certificate of Deposit", tax liens are | | | | What Do You Need To Get Started "Google the |
| illiquid. They cannot be "cashed in". | | | | County Name "Search for the Website for the County |
| · Some experts tout tax lien sales as a means | | | | Assessor and Property Tax Division "Find Delinquent |
| of acquiring property at highly discounted prices. In | | | | Property "Find Value of Property "Check public |
| practice, except for very rare instances all of liens of | | | | records for additional liens "Find Detail Information on |
| any value are redeemed well before the property can | | | | Property "View Property |
| be foreclosed. | | | | Most Importantly you must look at your potential |
| · If someone is successful in attaining the deed | | | | properties. If you cannot then don't waste your money. |
| to the property, the property might have environmental | | | | Thank you for taking the time to read this short article. |
| problems for which the new owner will be responsible. | | | | |