Investing In Tax Liens - Overview
The unpaid property taxes are actually what is referred to the tax portion of the term. Lien is actually defined in the dictionary as:
"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 is like a form of security wherein the individual's property is used as collateral to make sure that tax-related debt to another person is settled. Initially, the person with the property owes a debt to the government who imposed the taxes. However, after a certain period of time, the government agency will then take the property into auction to be able to compensate their expenses and open a new opportunity for savvy investors.
Tax liens are a product of the local governments and are not only 100% legal, but the interests of the investors are protected by each state they purchase from. To their gain, State governments will organize the entire tax lien procedure.
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.
If everything else has been settled, the lien will then be handed to the investor from the government. If this is already complete, the investor will now have the right to collect all of the stated interest that has been made by the government. The usual interest stated in the lien is between 8% and 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.
Though this does not require a lot of money, tax lien investing does require your time. Before making an investment, you should at first research on it to be able to get a good investment. This is because if you only depend on the tax office, a lot of times, you will only get the tax ID, owner of record and amount owed. Nothing less but you should be lucky if you find more.
The first step that you should make prior to buying properties is to take a look at the assessment information on your desired property and locate it. Visiting and seeing the property is always the best move because this would assure you that the assessment information has been kept updated. Also, see to it that the property you are acquiring worth more than the amount that has been owed for back taxes. Bear in mind that there is a chance that you have to pay the taxes on the property throughout the period of redemption (if the property does not redeem) before you can actually foreclose on it or apply for a deed.
Foreclosing on tax lien properties will really certify you a profit that is usually several times your initial investment. - 23159
"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 is like a form of security wherein the individual's property is used as collateral to make sure that tax-related debt to another person is settled. Initially, the person with the property owes a debt to the government who imposed the taxes. However, after a certain period of time, the government agency will then take the property into auction to be able to compensate their expenses and open a new opportunity for savvy investors.
Tax liens are a product of the local governments and are not only 100% legal, but the interests of the investors are protected by each state they purchase from. To their gain, State governments will organize the entire tax lien procedure.
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.
If everything else has been settled, the lien will then be handed to the investor from the government. If this is already complete, the investor will now have the right to collect all of the stated interest that has been made by the government. The usual interest stated in the lien is between 8% and 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.
Though this does not require a lot of money, tax lien investing does require your time. Before making an investment, you should at first research on it to be able to get a good investment. This is because if you only depend on the tax office, a lot of times, you will only get the tax ID, owner of record and amount owed. Nothing less but you should be lucky if you find more.
The first step that you should make prior to buying properties is to take a look at the assessment information on your desired property and locate it. Visiting and seeing the property is always the best move because this would assure you that the assessment information has been kept updated. Also, see to it that the property you are acquiring worth more than the amount that has been owed for back taxes. Bear in mind that there is a chance that you have to pay the taxes on the property throughout the period of redemption (if the property does not redeem) before you can actually foreclose on it or apply for a deed.
Foreclosing on tax lien properties will really certify you a profit that is usually several times your initial investment. - 23159
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 @ 3:37 AM
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