Investing In Tax Liens - Overview
The tax portion of the term typically refers to unpaid property taxes. The dictionary definition of lien is:
"The legal claim of one person upon the property of another person to secure the payment of a debt or the satisfaction of an obligation."
Tax lien uses an individuals property as collateral to ensure the settlement of a tax-related debt owed to another person or entity. While initially that debt is owed to the government that imposes the taxes, after a set amount of time these government agencies will auction unpaid debts to recoup their own expenses more quickly, opening an opportunity for savvy investors.
Tax liens are a result of the federal government and are not only 100% statutory, yet the concerns of the investors are protected by each state that they buy it from. To their benefit, State governments will then be the one responsible for the entire tax lien process.
Also, buying tax lien certificates is completely safe and open because the investors are actually true to their words and do pay the required taxes imposed. These certificates can be bought at tax sales where a county or municipal official is conducting it.
Once the lien has been transferred from the government to the investor, the investor is entitled to collect the stated interest that is set by the government. This interest can range from 8% to 25% per year.
The property owner will have a set period of time to pay the new total (taxes, interest, and other related fees). If the property owner fails to pay within the arranged time frame, the lien now gives the investor the right to foreclose on the property.
Tax lien investing is a high yielding investment. Tax lien certificates are an attractive investment because you don't need thousands of dollars to start and you don't have to pay any brokerage fees.
Tax lien certificate is an investment that requires your attention and time. If it happens that you have made good purchases and have research the properties that are attached to the tax liens, then you would most likely be happier to acquire a property through foreclosure. However, the list of properties that you will usually have before the sale from the tax office is minimal only, in which it would only tell less about the property. Most often than not, you'll only acquire the tax ID, amount owed and owner of record.
The first thing that you have to do is look up the assessment information on the property and find the address. Physically looking at the property is best so youll be sure that the assessment information is up to date. Make sure that the property is worth considerably more than the amount thats owed for back taxes. Keep in mind that you may have to pay the taxes on this property throughout the redemption period (if it doesnt redeem) before you can foreclose on it or apply for a deed.
Foreclosing on tax lien properties guarantees you a profit that is several times your initial investment. - 23217
"The legal claim of one person upon the property of another person to secure the payment of a debt or the satisfaction of an obligation."
Tax lien uses an individuals property as collateral to ensure the settlement of a tax-related debt owed to another person or entity. While initially that debt is owed to the government that imposes the taxes, after a set amount of time these government agencies will auction unpaid debts to recoup their own expenses more quickly, opening an opportunity for savvy investors.
Tax liens are a result of the federal government and are not only 100% statutory, yet the concerns of the investors are protected by each state that they buy it from. To their benefit, State governments will then be the one responsible for the entire tax lien process.
Also, buying tax lien certificates is completely safe and open because the investors are actually true to their words and do pay the required taxes imposed. These certificates can be bought at tax sales where a county or municipal official is conducting it.
Once the lien has been transferred from the government to the investor, the investor is entitled to collect the stated interest that is set by the government. This interest can range from 8% to 25% per year.
The property owner will have a set period of time to pay the new total (taxes, interest, and other related fees). If the property owner fails to pay within the arranged time frame, the lien now gives the investor the right to foreclose on the property.
Tax lien investing is a high yielding investment. Tax lien certificates are an attractive investment because you don't need thousands of dollars to start and you don't have to pay any brokerage fees.
Tax lien certificate is an investment that requires your attention and time. If it happens that you have made good purchases and have research the properties that are attached to the tax liens, then you would most likely be happier to acquire a property through foreclosure. However, the list of properties that you will usually have before the sale from the tax office is minimal only, in which it would only tell less about the property. Most often than not, you'll only acquire the tax ID, amount owed and owner of record.
The first thing that you have to do is look up the assessment information on the property and find the address. Physically looking at the property is best so youll be sure that the assessment information is up to date. Make sure that the property is worth considerably more than the amount thats owed for back taxes. Keep in mind that you may have to pay the taxes on this property throughout the redemption period (if it doesnt redeem) before you can foreclose on it or apply for a deed.
Foreclosing on tax lien properties guarantees you a profit that is several times your initial investment. - 23217
About the Author:
Steve Jonas is an expert in tax liens. For more information on tax liens visit theNational Association of Tax Lien Investors
posted by X - Men @ 9:54 AM
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