Redeemable Deed as a Good Investment

We know the fact that each county needs to collect delinquent taxes to pay for the projects made for the improvement of the state. That is the reason why auction is made to cover up the delinquent taxes that homeowners failed to pay on time. And this is where investors come into the picture to pay those delinquent taxes.

Redeemable tax deed is one of the delinquent tax collection methods of every state. As we know when investors purchase or buy a redeemable deed, he is already considered as the legal owner of the property. What makes the redeemable deed attractive to any investors is the hefty penalty, not the interest. Many investors find the flat penalty as a better one because for them it is considered as an instant profit compared to interest computation. This means that whether the property owner redeem its property immediately, or just a few weeks or months after the auction, the investor can still get the full amount of penalty. Penalty is not computed annually like the interest. In this case the investors can get assurance that they will be getting something big anytime, if the property owner chooses to redeem the property back.

In an instance if the property owner failed to redeem back the property within the redemption period, the investor already have the right to foreclose the property to start the process and fully acquire the property in just a fraction of the market value.

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