f you want to invest in situation.
tax lien certificates, one
of the first principles Before you invest in tax lien
that you need to be aware of is certificates, you need to figure
redemption. A tax lien out the redemption period. This
certificate is simply a lien that varies from state to state. Some
the county has sold to an states have very short redemption
investor for the delinquent periods. Others have very long
taxes. The investor then waits redemption periods. If you just
for the property to "redeem," want to get the very high
which simply means that the interest rates (as much as 24%)
homeowner has paid off the tax that you can get from tax lien
lien with interest and penalties certificates, then visit states
to the investor. If the homeowner with long redemption periods. If
does not pay off the tax lien you ultimately want to acquire
within a specified period of dirt cheap property, then visit
time, called the "redemption other states with shorter
period," then the investor has redemption periods.
the right to foreclose on the
property and potentially pick up Other states are more of a hybrid
a property at pennies on the with regard to redemption
dollar! So, from an investor's periods. How can it be a hybrid?
point of view, it's really win, In Florida for example, you can
win! foreclose on the property in as
little as two years. However, you
So, when could a redemption are not actually required to
occur? It could occur the day foreclose in Florida until the
after you buy the lien. It could lien is seven years old. So, it
occur weeks, months, or years really is the best of both
later. It just depends on the worlds. If you want to keep
letting the interest accrue, then interest at redemption.
you just let the lien sit. If you
want to get the property, then However, it's imperative that you
you file a quick foreclosure understand your state and local
after the two years. laws extensively before you
attempt to purchase tax lien
During the redemption period, certificates. In many areas, if
there may be pre foreclosure you don't follow the pre
activities that you are required foreclosure activities to the
to do with your tax lien letter, then your lien may be
certificate. These could include declared invalid and you will
giving the homeowner notice that lose your entire investment.
you have the lien, filing court
papers and giving notice in a Like anything else in tax
newspaper and title searches. certificate investing, redemption
Don't worry too much about this is a concept that you will see
stuff. It is usually handled by over and over. With this short
an attorney who will do these lesson, you learned what to do
things on your behalf. In nearly and what to look for regarding
all states, the attorney fees redemption. Now do your research
will be added to the total value and go take massive action!
of the lien and reimbursed with
About the Author:
Carlos Scarpero is an experienced real estate investor who specializes in tax liens and deeds. Visit his tax lien and deed blog at http://www.scarpero.com/real_estate.
Read more articles by:
Carlos Scarpero
Article Source: www.iSnare.com 
