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Seek Help from Tax Professionals
Tax liens and tax levies can be a horrible experience for a homeowner to go through. Losing property assets and income can leave you worried and unsure of the future. You would be thinking of the best way to proceed and talk in terms with the taxing authorities. If you can be successful at it, preventing a lien or levy may be possible, thus making payment arrangements.
The nightmare of facing a lien or levy can be avoided or significantly reduced by speaking with a qualified tax professional. You need someone who can explain your rights and come up with possible solutions, and speak to the taxing authorities in your behalf.
Tax Lien Sale Opportunity
Basically in a tax sale, you purchase a property owner’s tax lien certificate because he failed to pay his real estate taxes. The US law states that he must pay you between sixteen percent and as high as fifty percent in interest. Furthermore, in many cases, he must pay you back within six months redemption period or longer.
If the property owner cannot pay you back within the redemption period, you get his home free and clear. You also have the option to resell the property for more profits. Your cost just usually amounts to a small percent of the property’s market value. This make tax lien investing such an extraordinary opportunity.
Ways to Find Tax Lien Properties
Do you know where to find tax lien properties in your state? Here are 3 ways to help you find them:
* County Records Office
Every county in the US has a place where they note down all public records. These include notices, wills, mortgages, deeds and liens. There would be available computers on-site where you can search across their records for tax liens, and find a wide list of properties for sale. You can then print out these lists to help you locate the properties. This may be a time consuming method but it is very accurate.
* Tax Collectors Office
The tax collectors office maintains a list of tax deed and tax lien sale properties. Give them a call and ask what are the procedures required to obtain these lists. The lists are public information.
* Local Newspaper
You can always find tax sale properties on the local newspaper. The list is posted before or after the classifieds section. Take note of these properties and conduct your due diligence from there.
Tax Lien Certificate Benefit Investors
When a homeowner defaults on his taxes, the government puts a lien on his property. The lien is then sold at a public tax auction wherein investors from across US can come and bid for it. The homeowner is given time to pay for his tax debt within the redemption period. If he fails to do so, the tax lien certificate holder has the option to take legal action for the homeowner to pay. Unless the homeowner has the money to pay, he is left with no choice but to sell his property.
Having a lien on the property of the homeowner would not keep him from giving ownership or title to investors. He will keep in mind that it would be difficult to sell his property during this time. Also, tax lien is senior to all other liens regardless of time and date of recording, even above a mortgage. Investors would benefit from this because when a property is sold to pay off all liens, the first to be paid is the first lien. This is good news to investors.
Tax Lien Certificates Offered at Over the Counter
Perhaps you reside in one of those tax deed states and for whatever reason it may be, you do not have time to attend any tax lien sales. Well, there is nothing to worry about because you can still purchase tax lien at the comfort of your own home. This can be achieved by over-the-counter sales. This is made possible by most states that have created a system to sell tax lien certificates, which are leftovers from the sale.
Over-the -counter sales is a great opportunity to invest your money all over US. You can do this without the need to go to the actual location of the sale. With this type of sale, you are getting the best of both worlds. Why is it so? You would get the maximum interest rate since the bidding competition is eliminated. Also, you are purchasing these lien certificates at the lowest price possible. There are cases in fact, in which tax lien certificates were purchased at less than the minimum bid price than it was offered at the sale. This is why you wouldn’t want to miss this great opportunity to make big profits.
Redeemable Tax Deed States
Have you heard of a redeemable deed? It is like regular tax deed but the difference is that the original homeowner can come back and redeem his property from the deed buyer. The homeowner must pay the bid price together with the heavy penalty in order to redeem his property. The bid price and penalty varies according to the tax deed states.
US have seven redeemable tax deed states but only two of them have high rates of return with short redemption periods. Those states are Georgia and Texas. These states also conduct tax sales more often compared to the others. This makes them very profitable states to invest in. Furthermore, the large counties on both conduct sales once a month. If you plan on buying tax deed in any of these states, remember that you need to know what you’re doing before placing your bids.
Click Here To Get Your Free Tax Lien Training System ($77 Value)
- Exactly How To Start Buying Tax Liens Today
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- How To Avoid The Mistakes New Tax Lien Investors Make
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