urrently around half of numerous notices of delinquency
the states offer tax lien by mail or by telephone. Normally
certificates and the rest you have quite a bit of time
offer something called tax deeds before anything really bad
or a combination of both tax happens. It is the same case when
liens and tax deeds. people go delinquent on their
property taxes. When they miss a
In a tax deed state, you do not payment the county will to inform
buy the lien, you are bidding on them and will "kindly" ask them
the actual property. If you are to pay up. This continues for a
the winning bidder you will own while until the county finally
the property outright. It's says enough is enough, "if you
yours, and you can do whatever don't pay up by this day you will
you want with it; renovate it, lose your property."
rent it, tear it down, live in it Coincidentally that day is
- it's yours. These properties usually the day before the
will almost always come with a auction is scheduled.
title that is free and clear of
all liens and encumbrances and I want to point out that by
you probably paid somewhere in investing in tax deeds you are in
the neighborhood of 50 - 70% of no way stealing anyone's home.
market value. Which means, you These property owners have had
could sell it tomorrow for 80% of every opportunity to repay the
market value. debt. The county will do
everything in their power to
How does a property in a tax deed avoid sending a property to
state end up at auction? auction and in many cases they
wait 4 years or more before the
If you've ever been late paying a property actually gets there.
bill you know that you get
Typically you will end up paying deed investing you are buying the
more for a tax deed then you property outright and you can do
would for a tax lien certificate anything you want with it and
but it is a different type of there is potential for a huge
investing. In tax lien return on your investment in a
certificate investing you are short amount of time but it does
looking for the guaranteed 8% - require more work on your behalf.
50% return on your money with a It depends on your own
chance at higher if you get to personality and investment needs
foreclose but you have no right as to which type you choose.
to the property until the
redemption period expires. In tax
About the Author:
Brad Olstad http://www.FreeTaxLienSecrets.com
Source: www.isnare.com
