Tax Lien question?

nygnyk30 Hey when you buy a tax sale property the mortage is deleted! So you get a $100,000 for the back taxes. Pretty sweet deal! Hope I have helped you.

I suggest you find out exactly how tax liens are handled in your state or the state in which you are investing. Each state has their own rules and procedures. Darrell's answer is correct in some but not necessarily all states.

So if I pay the taxes on a house, does that mean that the house is mine or that they can't sell it until they pay me. A realtor told me that the taxes have to be at least 5 years overdue to claim a house. Is this a good way to go. Also can you evict the home owner if he does not pay you. Hope there not silly questions I just don't know. Newbie

Wm357- You and I wish that was all there was to it!You are only the grounds keeper when you buy a tax lien. In order to get the property (according to where you are) You pay the taxes for a couple of years or more then you get a tax deed this makes you part owner!Now they can not sell it without you.Next you have to file a quite title action with a lawyer.This cost about $2000. Now its all yours!Depending where you are at!!!!

Now that sounds like to much trouble 2 go thru, let them keep the house I'll wait for the Foreclosure. thank you.

Hi Wm357,

It may seem like alot of trouble. We have now an opportunity to invest in a way we will probally never see again in our lives. This is a ground floor opportunity. Sure it may seem like a long process. But it could be a great long term goal.Buying a tax certificate will only give you great leverage. Muchh success to you.......Lubertha

I think in Texas you purchase the tax lien and the owner has a certain amount of years to pay you plus up to 25% interest, if all is not settled then you can foreclose on the property. Be sure to check the local rules on tax liens before you invest.

99% of the time, the tax lien will wipe out all jr liens (except state and federal) So you could very well end up with the property after the redemption period, if no one else come to the auction.

Cljones you said if no one else come to the auction.That is not true we have hundreds and hundreds of properties so you don't have to worry about that much competition!

In Texas it depends on the type of property you are buying.
A single family home has a redemption period of 6 months. Texas is a Tax Deed State. For Example: Say you find a home worth $100,000. and you are able to buy it at the Tax Sale for $5,000. During that 6 months the original homeowner still has a chance to Redeem his house, but will owe you the $5,000. plus 25% intrest. If he fails to pay at the end of 6 months you file for the Deed and own the property FREE & CLEAR. All other liens, mortgages etc. are wiped out. So either way it's a good deal. #1.Do you think you can get 25% intrest on a CD at your bank? Think you can do it in the Stock Market?
#2 If he doesnt pay, you just landed a $100,000. property for $5,000.

Comercial and Agricultural properties have a 2 year Redemption Period
Every State has thier own rules. I suggest you look up your State and
**Study**.

Let me ask this. If you had some money to park some where, what better place to park it than in a Tax Deed (or Lien) that is Gauranteed by the State to pay 25% intrest(Texas) Most homeowners end up redeeming the property and you get well rewarded, but if they don't you get the property.

I found a website that seems to be on top of this subject.
Send me a PM if you want more info.
Dave England

you lost me....i didn't understand your response. I didn't say that people don't come to the auction. Please clarify your point.

You are absolutely 100% correct. Nice post Are you investing in tax liens in TX?

CL

you said "if no one else come to the auction."But that is not true we have hundreds of people come to the auction. We just have alot of tax liens!Which is coming up!! YEAh!!!

I think there is some confusion. Everyone needs to check with the laws in their state (or the state in which you want to buy liens or deeds) to get the particulars. California is a deed state and it will take 5 years for your investment to mature, unless of course, the homeowner steps up to the plate and pays you for the back taxes you covered, plus interest.

Other states do have tax liens. These mature anywhere from 4 months to around 3 years. Again, do your homework to find out what pertains to the state you are interested in investing in. States do auction off their liens in various ways. You can either take part in an auction, or wait until the auction is over and then find out which liens were not sold. Look over the list and then go in and scoop up the ones you want. Doing it this way avoids you being caught up in a bidding frenzy. Plus, there are far more tax liens/deeds out there than foreclosures, so don't be worried that there will be none left for you to buy. Let the interest accrue, it will be anywhere from 15 to I believe north of 50%, depending again on the state. When the redemption period is up, if the homeowner does not pay you, any other entities or individuals that hold liens on the prop can redeem it by paying you your full investment plus interest. For instance, the bank or other lending institute that holds the mortgage on the prop. Once the homeowner fails to pay, the bank is sent notice and has 30 days to respond. Normally, they will, but if they do not, the house is yours. All other liens are secondary to the tax lien.

Cindy, that was a great post. I think there was confusion there, I wasn't saying that no one would show up at the auction, I said "if no one showed up". I travel around the country and there have been a few times in the smaller towns where no one showed up. It's not the norm, but It has happened.

the rules do vary from state to state. I happen to invest in more than one around the country. Darrellf334, there are also some advanced strategies to getting the deed that don't allow you to wait any redemption period. I speak from experience. I hope this helps.

I have decided to share my knowledge on tax lien and deed investing. Please use my experience as a resource. Please remember that the laws do differ in every state, so check your laws. Find out if the state you want to invest in is a tax lien, deed, or redeemable deed state. Don't just listen to what others say, you should always do your own due diligence. With that being said, get ready for some great ways to make money with tax liens, deeds, excess proceeds, and self directed ira's.

As always,
Keep God 1st, Invest in People,

CL

make sure if you are going to purchase land in Florida that you are not buying in a scrub jay area. A scrub jay is a protected bird in FL. If it was decided to live in your vacant land, you may have to jump through some hoops before you can build on it. These birds are a nightmare to an unsuspecting investor.

This is why so many people are selling really cheap land in FL. If you come across a piece of land that is being sold really cheap, you may want to check with the county before purchasing the property.

This advice still really depends on your exit strategy! Remember the saying: Let the buyer beware!

i live in alabama there are a ton of people who didnt pay taxes i went to the courthouse and got a copy of some of the properties and researched them i want to do this but i am still not sure about the rules in the game i live in montgomery and some of the property is in crenshaw and montgomery does anyone know how long it will take until i can claim the property and do i have to cut the grass and take care of the property

Brenda I live in Montgomery too I can show you what ever you need too know just e-mail me and I'll show you how to look all up on line or through the mail !! Love to help you!

Hi, I'm a new investor in California and was reading your message about tax liens, do you still have the website that you found useful on this subject? I'm lost and need guidance. Thanks.

In Philadelphia when you buy a house at a Tax Tien sale or Sheriff Sale then the deed is free and clear. I bought two house from tax lien sales and All I had to pay was the price that the house sold for at the sheriff sale auction. But check your state to be sure.
Stan

California is a tax deed state. Homeowners here have 5 years to catch up with delinquent taxes. If they fail to do so, their home is auctioned off.

Tax liens give you a much faster turnaround if you are trying to build up your investment funds. Liens mature in some states in as little as 4 months. It's going to take a little bit of time for you to do the research, but if you start by goggling you can put together a list of the states that pay the highest rate of interest to you on the liens and also how much time the homeowner has to pay off the lien.

Good luck with your homework!

Thank you, I will try bidding online for tax liens in Florida. I checked out a book that found very resourceful "Profit by Investing in Real Estate Tax Liens" by Larry Loftis.

I went to the county court house to look up tax liens. I didn't really now what I was looking for. Can someone tell me what a notice of pendency is?

Hi Cindy,

Are you saying it is not worth it to invest in CA?

Thanks---Tony

Great information on tax liens that are on here kudos to all who responded too i love reading response from everyone. I sound like i posted this but I didnt. I'm new in the investing world and just been doing word of mouth and about to start with business card handing

I have been reading lots on posts on tax deeds, and or liens . Is there anyone here that is buying these in Texas? I would like to share thoughts, info, etc. on this. Please PM and if anyone has any great websites to share I would appreciate it. Thanks to everyone here for sharing, discussing, but most of all for caring for the new fellow investors. Thanks!
Tammy

make excellent venues for investment of funds when you have some extra. I think of buy tax liens as the healthiest form of gambling. You cannot lose. You either get your money back with a higher interest rate than banks are paying now. OR you hit a jackpot and pick up a piece of property for pennies on the dollar. (Insert due diligence disclaimer here.)
peace,

what happens to your tax lien certificate when the owner goes bankrupt? do you loose your investment? is the county still responsible for the loan? does bankrupt cover county tax?