Georgia as a Hybrid Deed State

Tax deed investing is very attractive to any investors because of its promise of high returns and of course low risk. Georgia is known as a hybrid state. It is said that people who are investors in Georgia will surely received an annual return of 20%, if ever they won’t end up owning the property. The state of Georgia has a 1 year redemption period. With this, property owners were given enough time of 1 year to pay all their delinquent taxes, penalties, and fees if they still want to redeem back their property. If an instance the property owner failed to do so, the investor has the right to terminate its redemption rights.

Interest rate in Georgia is very high that is why more and more investors are attracted to it. They have a 20% penalty for the first year. If ever it is not yet redeemed, the property owner will be given an additional 20% penalty, if it is redeemed within 4 weeks following the 1 year redemption period. And there is another 20% penalty if the property owner redeemed the property after a public notice had already been given. In total, investors can possibly get a 60% return of investment in just one property if the property owner failed to comply with the process. This is the reason why many investors choose Georgia to be their investing state because of its high rate of assurance when it comes to return of investments.

One Way of Preventing a Lien on Your Property

As a property owner, sometimes it brings happiness to us to improve our property a little bit more. Most especially if we got some extra cash out of our daily fortunes. Don’t you know that home renovation can also file a lien against you and your property? Yes it’s true. Some of us think that we can only get a lien if we fail to pay our back taxes.

Many people didn’t know that people who are rendering labor and contributing materials for the renovation can also file a claim of lien against your property. To prevent this from happening, you have to file a notice of commencement. This contains detailed information about the certain project, and also protects the homeowner’s title to the property. It is also said that failure to record notice of commencement might lead for the property owners to pay twice for the improvements.

You can also use Interim Lien Waivers for them to get signed each time you make a payment if there will be more than one payment. This will protect you from liens for work that you have paid for. Once the renovation is done on your property, upon making your final payment, you can also have them sign the affidavit of payment that states you already paid everyone doing the job. This will protect you from anyone who will file later a lien against you stating that they are unpaid for the services they have rendered.

Non-US Citizens Can Invest in Tax Lien?

Due to some good and overwhelming feedbacks on tax liens, when it comes to profit, it is not a surprise that many people gets interested in investing in tax liens.  Not only U.S citizens can avail this but also people out of the border.  Many people were asking if that would be possible.  Of course it is.  Investing in tax liens doesn’t require you to be a U.S. citizen to make it so.  It is just very simple.  All you have to do is to apply for a Tax Identification Number (T.I.N) from the Internal Revenue Service, which you can get even as a foreign citizen that never lived in the US.  If you already got it, you are now ready to invest in tax liens and deeds.

Even though you’re not in the US, you still have to do your due diligence to make sure the money you invest is secure.  Nowadays it isn’t possible to make all of this since everything is almost available online.  Unlike before that you really have to travel to get to the destination to get all the details you need.  These days you can bid at the auction online.  When it comes to the list for the auction, you can also have it by calling the county and request for it to be sent to you, or get it online.  There are also some online sites where you can check the property that you might be interested in.  Google Earth can also be a big help to check on the property without visiting it.

Credit Repair after a Tax Lien

We knew the fact that credit rating evaluates our worthiness as a debtor. Our rating shows our ability to pay back something and through our rating we will be notified if we are qualified or not. Once the IRS determines that you owe a tax debt, they will usually notify you and give a certain time frame to pay off the debt. Failing to pay it on the given time will result to the IRS recording a tax lien against you. This will eventually appear on your credit report and of course will result in damaging your rating.

Paying your tax debt is the most important move to repair your credit. However, paying it will not result that the IRS will remove it immediately on your credit report, instead just marking and updating it as paid. This report will still remain on your credit rating for seven years according to the Fair Credit Report Act. However, the damage it brings on your credit rating decreases with time. So, the longer it is, the less impact it brings. You can see how a certain delay and a time missed on paying your tax debt can impact your credit rating for a longer period of time. One of the best things you can do is to practice good management of your debt. Learn by paying it on time. Avoid such delays to prevent any further damage on your credit.

How Will I know if I have a Tax Lien?

We know the fact that tax lien occurs if we fail to pay our taxes. But due to some certain instances like financial struggle, problems, and too much work, sometimes we forgot some certain dates that we should not miss. Tax lien against our property is not an easy thing for anyone to ignore because this might lead to something that could take away our property from our hands.

To make sure we didn’t missed any of the payments, and to make sure if there is a lien on our property, we should check it as way to prevent it from happening in spite of our busy schedules. It wouldn’t require much of your time since everything is available online. You can always check it online and all you have to do is go to AnnualCreditReport.com, and select your state on the dropdown list and click request report. After that you will be directed to the next page. You have to fill in all the personal information required. Make sure to fill in all of the boxes with asterisks since it is very important. You don’t have to worry about your social security number, since it will be encrypted and only the last 4 digits will appear. You have the option to select the credit agencies. Just follow the instructions given since each agency has its own different process so it can show the report you needed. You can now review the report to see if you have a lien.

When Do Tax Foreclosures Begin?

Many people don’t have any idea why they face foreclosure on their property. This is said to be the most painful misfortune that can happen to a property owner. It is such a rough time to watch your property you built in for years being auctioned off to other people with just a fraction of the amount. But when do tax foreclosures begin? Tax foreclosures usually begin when a homeowner failed to pay his taxes. To prevent this, property owners should pay more than the original amount of the unpaid tax including some of the additional fees.

According to the tax rules in any state, the property owner doesn’t have any right to bid on his own property. So, there’s no way for the property owner to buy his or her property back. Even family members are prohibited as well. In this instance there’s nothing you can do but watch your property being taken away from your hands. If you are facing foreclosure on your property, it can also be taken away from you by force and with a police warrant. The tax sales are usually held in a county courthouse. In some counties, there’s an option that you can negotiate with the authorities to request more time in paying your unpaid tax, by negotiating with payment terms to settle your debt. In facing foreclosure, always seek for a legal advice within your area to get more accurate ideas and ways in preventing it.

How Tax Lien Works?

Although tax lien is very popular nowadays, there are still people who still don’t understand how this tax lien works. Some people just prefer not to know because they find it complicated to understand. And because some people are naive of this, they don’t know what to do when their property is already held by the government.

Tax liens begin when someone failed to pay his taxes on time, and if these taxes are overdue the government will now start to move to sell the tax lien to someone else. Usually they will give time for the property owner to pay it. If the owner still fails to pay for it in due time, this will be the period that it will turn into a certificate that an investor can purchase for the given schedule. Whoever bought the certificate will have the right on the property, until the given time that the property owner was able to redeem the property.

In this process, the government was able to get the full amount on time by the money, which is paid by the investor on behalf of the property owner. The property owner will then pay interest to the investor for the money he paid for the certain amount of time. The investor can now expect a profit for his money. If the property owner fails to pay the investor on the given time along with the interest, the investor will end up owning the property by just a little fraction of dollars he paid.

Property Condition is Important in Tax Liens Investing

Many people who wanted to invest in tax liens sometimes gets too excited that they forgot to check some of the things necessary when starting to invest.  They just jumped in to the conclusion of investing in a one property immediately especially if the cost is too low and affordable.  They just bid on it without any knowledge of the property’s condition.  They forgot their due diligence in securing their investment.  One of these is what we call property condition.  We couldn’t deny the fact that homeowners feel bad and angry if they face this situation, especially if they are in the state of financial struggle.  They have no choice but to give in their property to investors.  Some of these homeowners show their anger by damaging the house condition, especially if they knew that it will be impossible for them to redeem it.

Some homeowners punch holes in the wall, they gut the house and even remove some parts of it.  This would mean another expense for the investors in repairing the damages if he ends up owning the property.  We know that making necessary repairs to damaged homes can be very substantial.  This could be another problem to investors, and a deduction to the possible profit he can get on the property.  Upon investing, it is very important to always check the property condition before jumping into conclusion.  This is done in order to make sure we are really getting the right property for the money we are going to spend.

Why Do I need Quiet Title Action?

Quiet Title Action is a lawsuit filed in order to remove actual or potential clouds on a property.  This also includes removing questions regarding ownership, liens, and other issues affecting the property.  Having a quiet title action is very beneficial.  If you don’t have a quiet title, it will be hard for you to even obtain a marketable title.  It can also help the owner to get title insurance for its property.

This usually takes 6 months to a year.  Any individual can file quiet title themselves on the county but it is really recommended to hire a lawyer to finish the process smoothly, since they are very knowledgeable when it comes to this.  Quiet Title needs also to be completed before selling or refinancing the property.  Pursuing a quiet title action really costs a lot because of so many fees, service of process, and even publication you have to pay including the attorney’s fee.

Documents needed for this particular process usually depends on the situation pertaining to the title of a particular property.  It would really be best to visit an attorney’s office to get a clear explanation of every process you have to go through.  It would really be a big help for you if you would perform your due diligence by performing a title search before purchasing a property.  This is done in order to avoid ending up with a property that has other claims against it.  This way you can save your time as well as your money for any further process you should take.

Understanding Mortgage Foreclosures

As we know mortgage is a security document that allows the borrower to keep the title of the property as a security or collateral for a loan. When a certain property had been put as a mortgage, the lender will eventually place a lien on the property if the owner fails to pay the said loan. In an instance if the borrower was able to pay the said amount, the lender will also give the borrower a satisfaction of mortgage, which will eventually remove the lien on the property.

If an unexpected situation happens that the borrower fails to pay, this is the time that the lender will file a mortgage foreclosure lawsuit against the borrower, which will go through a certain process. This is usually the lenders strategy to recover the balance of a loan from a borrower, who failed to make payments according to their agreement. It will be better to avoid situations like this. However, the lender couldn’t just foreclose a property no matter how big the balance is.

Mortgage foreclosure is a deed that can only be foreclosed through a court action. The process for this will start with a summon and a complaint which will be issued to the borrower. There is a specific date range given to each party to respond back to the complaint. This process will slow down the mortgage foreclosure because of the process and system of the court. It sometimes lasts for a year or even longer than that.