OfflineHi everyone,
Ok let's say you buy a Lien for $20,000 of delinquent taxes and the house's FMV is $100,000.
But lets say that house has a mortgage on it of a balance of $40,000. Does that mean that you have to cover not only the lien but the mortgage aswell?
I always wondered that. Just to let everyone know im new to the Real Estate Investing game so take it easy on me lol!
Thanks
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Then the lien will more than like become a tax deed after the redemption period has ended!Then you get the PROPERTY!!Way to go James Cook!The lien is backed by the property not the owner!
Very well put Bill. Watch that states laws and LOCAL laws. Do your checking. The tax office should be a good informative source or a title company as examples.
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Tax lien sale are very popular in Arizona and Florida. I bought a small one from arizona a few years back. It was about 32 acres of land near the Grand Canyon, surrounded by state land. I think I got it for around $600 on ebay. I had to pay the taxes for a few years, but I guess the guy paid his taxes and I ended up receiving a small check. To tell you the truth I can't remember how much....$600 plus interest I think. I was hoping to get the land(I think its like 4 or 5 years). I didn't really know much about tax liens at the time, well I still don't, but I want to try it again after a little research.
You can either look for opportunities or make them.
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maxximus317 Don't give up!Have you thought of going out of state to other tax liens state?Well I did and got 2 properties in Ark. The rest is in Alabama!Just a thought!I bought a house in montgomery Al for $180!Rehabing it now bout ready to sell it as a turn key investment or rent it out for an income!Either way I'll be making money!And you can too!Just thought I would talk to you a little bit about tax Liens!
Thank for replying to my question. If anyone has more information on this subject i would appreciate it. This is one of the many avenues i am taking in my REI business.
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No James your lien is backed by the property not the owner!So its a good chance you will get the property!The tax lien is the Senior Lien so it whipes out Mortgages and loans!
I have several tax liens in Fl. When the home owner finally pays his taxes, I get my money back plus 18%. Better than the .5% I'm earning on my savings at the bank! I just buy left over liens and there are always more that don't get purchased. Just be careful and look up the property card to make sure your property isn't a swamp! Otherwise their good solid investments.
What department do you check out for Tax Lien Certificates in Arizona? So what you're saying is, that if homeowner doesn't pay the taxes, and you scoup up the certificate, they have so much time to pay you back, plus interest. If they don't (and there's a mortgage) it goes the the bank and they have 30days to do act on it. If the bank doesn't, then it becomes your house? What are the odds of an investor getting to keep that house?
Let me know when it's up, I've always been interested in Tax Liens. I bought one and did well even though I didn't do my due diligence, but I wouldn't recommend anyone doing it that way. I'm definitely interested in doing more of them! Thank you for sharing your knowledge with us.
Continued blessings,
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
There are two States in the US which are an exception. You must know the law of your state to proceed.Also, you should know the difference bewtween a tax deed and a tax lien.A tax deed you buy the property a tax lien you purchase the lien.There is also a redemption period for the owner to get back the property by paying the interest and penalty fee. Most times you will get your money back if a bank is involved the biggest buyers of tax liens are banks and institutions. Due diligiance is involved do your homework the best deals are in the small counties and cities.
Always find out if the State you want to buy in is a tax deed,or tax lien state.
Another exception is find out if the home is under the homestead exemption act, if so the redemption period will be longer and your money will be tied up for an additional year or two know your state law I can not stress that point enough.
Here is a very good article by Darius Barazandeh. I bought his Tax Lien/Deed course a few years ago and it is excellent.
DO NOT buy the one by John Beck!!!!
http://reiclub.com/articles/tax-lien-purchases
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David, have you purchased Texas tax liens? Everything I have found states that you have to buy them from attorneys. I'm wondering if that is accurate.
Need help trying to find out more about tax foreclosures in Washington state?
I'm very new to investing in Real Estate and need Advice. I don't have any money to invest, so I'm just trying to find my break into investing. If you understand what i'm getting at... thank you
With a tax deed sale after you purchase for the amount of taxes owed then that mortgage will get wiped off the property. The owner and the mortgage holder have already been warned that if they dont pay the taxes they will be losing the property.
Majority of properties you see go to tax sale are going to be free and clear anyway so normally its not even an issue.
Washington is a tax deed state. that means if you find a property and buy it at the tax auction then you will be getting that property. Unfortunately in order to buy it from the auction you need to have cash your self to buy it. you can get awesome deals. usually around 50% of the value or less but you do need cash to buy.