Tax Lien Sales

Vinny are you limited to that one state? There are other states that you only have a 60 day redemption period. If you do not want to wait the 3 yrs. And you can do it all through the mail! Oh and I'm a member of taxsalelist.com As a matter of fact I have a workshop in one hour.Your more than welcome to ask me anything I'll help the best way I can!

Vinny are you limited to that one state? There are other states that you only have a 60 day redemption period. If you do not want to wait the 3 yrs. And you can do it all through the mail! Oh and I'm a member of taxsalelist.com As a matter of fact I have a workshop in one hour.Your more than welcome to ask me anything I'll help the best way I can!

Vinny are you limited to that one state? There are other states that you only have a 60 day redemption period. If you do not want to wait the 3 yrs. And you can do it all through the mail! Oh and I'm a member of taxsalelist.com As a matter of fact I have a workshop in one hour.Your more than welcome to ask me anything I'll help the best way I can!

Vinny are you limited to that one state? There are other states that you only have a 60 day redemption period. If you do not want to wait the 3 yrs. And you can do it all through the mail! Oh and I'm a member of taxsalelist.com As a matter of fact I have a workshop in one hour.Your more than welcome to ask me anything I'll help the best way I can!

Vinny are you limited to that one state? There are other states that you only have a 60 day redemption period. If you do not want to wait the 3 yrs. And you can do it all through the mail! Oh and I'm a member of taxsalelist.com As a matter of fact I have a workshop in one hour.Your more than welcome to ask me anything I'll help the best way I can!

Vinny are you limited to that one state? There are other states that you only have a 60 day redemption period. If you do not want to wait the 3 yrs. And you can do it all through the mail! Oh and I'm a member of taxsalelist.com As a matter of fact I have a workshop in one hour.Your more than welcome to ask me anything I'll help the best way I can!

Vinny are you limited to that one state? There are other states that you only have a 60 day redemption period. If you do not want to wait the 3 yrs. And you can do it all through the mail! Oh and I'm a member of taxsalelist.com As a matter of fact I have a workshop in one hour.Your more than welcome to ask me anything I'll help the best way I can!

Vinny are you limited to that one state? There are other states that you only have a 60 day redemption period. If you do not want to wait the 3 yrs. And you can do it all through the mail! Oh and I'm a member of taxsalelist.com As a matter of fact I have a workshop in one hour.Your more than welcome to ask me anything I'll help the best way I can!

Vinny are you limited to that one state? There are other states that you only have a 60 day redemption period. If you do not want to wait the 3 yrs. And you can do it all through the mail! Oh and I'm a member of taxsalelist.com As a matter of fact I have a workshop in one hour.Your more than welcome to ask me anything I'll help the best way I can!

Vinny are you limited to that one state? There are other states that you only have a 60 day redemption period. If you do not want to wait the 3 yrs. And you can do it all through the mail! Oh and I'm a member of taxsalelist.com As a matter of fact I have a workshop in one hour.Your more than welcome to ask me anything I'll help the best way I can!

cumputer screwed up! Sorry!

Approximately 33 out of the 52 states are "Tax Lien Certificate" states
How it generally works is when a property owner is late on paying real property taxes, the county or municipality will issue a a tax lien on that person's property. Certain states allow the tax lien to become a first lien on the property, which is then turned around and sold at auction as a tax lien certificate. This senior lien puts everything else under it's feet which is why in some cases the mortgage company will pay you on behalf of the owner if they see you're not being payed back your investment plus whatever the states interest rate is.

After placing a successful bid, buyers of a government issued tax lien certificate will then get one of two things:

1) A state-mandated yield from the lien, which the delinquent taxpayer must pay in order to release the lien plus interest and or additional penalties.

2) Title to the property (after a certain amount of time, set by the jurisdiction) if the delinquent taxpayer fails to pay up past the due date.

Individuals have been buying up tax liens more and more because of these two benefits. A fixed percentage rate, mandated by a government agency, or the title to property at a substantial discount are incredible benefits rarely seen with other real estate transactions.

The only major risk is making sure you want the property incase you get title to it through default of payment to your original investment. Sometimes it's better to do this as a group and split the costs and responsibilities up.
Typically a Tax Lien is worth 1-3% of the value of the property, so for example a $1000 dollar certificate would hold a property value of around $100-120 thousand.
These are GOOD investments because they're backed up by real property or land.

Darrel,

No I am not limited to one state, but I wanted to make it real by looking into my home state. Also, the family running the website Taxsaleslist.com is here in Denver, Co and I have attended his workshops. They are informative and I have been researching the states that I want to buy in. I am researching internet sales and schedules. Also, I am trying to save enough to buy the state guides and materials to learn the ins and outs.

I do not have enough money saved to jump in directly. My 401K is locked up and my other assets are too small to buy or levarage. Any information would be helpful. I am looking more into tax liens than tax deeds. I am scoping the best states for ROI and redemption periods. I am currently looking at Iowa, Virginia, Colorado, and Texas. This is for long term investing with the hopes of getting a property. Again, any information or guidance would be great. I will be attending another workshop but my day job is really keeping busy and focused until things slow down again.

I would like to keep in touch thru this website and accumulate all the knowledge you have to offer or anyone else for that matter. If I could find a way to start laddering my money into this investment strategy that would be great.

Sincerely,

Vinny

In Lancaster P.A. THERE IS A TAX SALE COMING UP IN SEPT. The sale is to be advertised August 7th. The lsit of proerites that will be sold at the sale will made public on the 7th. This state has no redemption period. So you become the owner once you win the bid. I have my eyes on a prop that is really old in age and ran down, outdated in layout and all. The house has been vacant for 3 years or so. I saw the inside terrible. Its in a unigue location on a nice lot perfect for a business of some kind or a new house. The lien on it is about 3k. I was thinking to buy it get the house torn down and selling the land. People wish the house would dissapear. If I can buy it and sell the land, I believe I can make a some good money from the land. What do you think?

Do you think the value of the land would go up once the house is torn down. I honestly believe it would, because with the house gone the loation of land would become more desirable. If so would someone be willing to invest in the deal with me. I will be getting the deal going with another investor to fund the purchase of the house and the cost of the tear down. And we split the profits from the selling of the land.

One of the best way to acquire a property for pennies on the dollar is not to buy it at a tax deed sale, but at a tax lien sale. Why? because at a tax deed sale, you will be competing with other bidders. Many of these bidders may be willing to buy it for 50 cents on the dollar, sometines even more. If you purchased a lien at a tax lien sale, you are really buying for a rate of return. However, if the lien does not redeem, you may get the property for little more than one or two years of back property taxes.
While this situation is very rare, it does happen. In most lien states, the forclosure process does not involve a public sale of the property but only a statutory requirement to send certified letters to the owner and lien holders, and typically a notice in the legal section of the local newspaper. In most cases, a foreclosing property tax lien holder is only paying off a subsequent property tax lien holder, paying the back taxes, and reimbursing the county for its administrative fees for publication.

I just bought my second property in sharp county Arkansas A retirement property or a vacation lots!! But in 2 months I get 2 more properties that has gutted out houses. My friends love it when I get a property cause that means its time to go to work! My Friends: A Plumber: An Elect.: A Framer: I'm the A/C Man!! I love me some tax sales!!

Looks like this got caught in a Do loop.

You are not limited to one state. You can do tax liens in other states if you want to. I always recommend you actually see the property before bidding on the lien. The property might be under water 6 months of the year or on a steep hillside. Be careful and you can make money with them.

Darrell can you tell me which states have a 60 day redemption period.

Hey here is some good basic information on tax liens and why we have them. State, county and local governments raise money to provide benefits and services via taxation. One type of taxation, is a tax on "real property." Pursuant to statute, the owner of a parcel of real property is assessed a dollar amount to pay based on the value of that real property.

This tax, in virtually all cases, is collected by the county where the property is located. If the owner of the property fails to pay the tax, the amount of the tax becomes a lien against the property. A lien against the property, however, does not help the county and local governments pay for the services and benefits they have promised to provide for their citizens.

The county needs the money now, not some time in the future. It needs that money in order to fulfill its budgetary obligations. By state statute, each county is authorized to collect the taxes due that remain unpaid by selling at public auction, either a Tax Lien Certificate or a Tax Deed.

Randy Bailiff
Dean Graziosi Real Estate Investment Coach

Because of investors competition for the lien interest, there is bidding for the properties. The overbid amount can also become an additional source of income for the municpality. Some times forfeiture properties can be obtained from the investors via Quit claim deed. I have personally purchased 5 homes this year from other tax investors. Win win situation for all parties.
Jimmy

Confirmation suit case numbers assigned to three cases and published in legals in paper. Prior owners have 30 days from first publication date to respond if tax sale was valid. If no response a default judgment can be obtained and title confirmed by the court.
If court confirms title, title insurance can be obtained. Each state's laws vary. Investors would need to verify the title confirmation process for the state where they do their investing.
Jimmy

My attorney contacted me this morning concerning the tax confirmation suit. Property was in an estate and the estate has engaged an attorney to protest the confirmation based on not proper notification prior to sale. The property is a vacant lot that is assessed by the county at $49,000. I had purchased the property by Quit Claim deed from another investor. After paying back taxes, I have approximately $18,000. Invested in the property. With attorney fees and no guarantee of title confirmation, investors need to be wary of the risk involved.
Jimmy

As one means of generating lost income from delinquent taxpayers, county governments offer Tax Sales at auction to the public. During Tax Lien Sales, what is purchased at these auctions is not land, rather a debt to be collected on. By purchasing the right to collect past due taxes, a buyer is in essence loaning money to the property owner to pay their taxes. During Tax Deed Sales however, the winning bidder will own the deed and the land, having purchased it from the county or authority performing the sale.

A Tax Lien, or Tax Certificate Sale is a public sale, usually at auction, of the right to collect on a delinquent taxpayer's debt. This sale is held by the County, generally once each year. What is purchased by the winning bidder is not the deed to a property. The purchaser's money pays the delinquent taxes to the County on behalf of the delinquent property owner. In exchange, the purchaser is given first lien position on title, ahead of mortgages, deeds of trust, and judgments, subordinate only to State tax liens.

Under the terms of the sale which may differ greatly from county to county, if the debt is not repaid with interest (rate determined at the time of sale) within a specified time period, the purchaser of the tax lien may foreclose upon the property, and all junior (subordinate) liens are dissolved, forgiven, or otherwise not the responsibility of the purchaser. If you are interested in participating in a Tax Lien or Tax Certificate Sale, contact the county for specific information and details both about the sale and the properties.

A Tax Deed Sale is a public sale, usually at auction, of the deed to the property of a delinquent taxpayer. The Owner and all lien holders have been given ample time and have received proper legal notification that the property will be sold if due taxes are not satisfied. Different than a Tax Lien Certificate Sale, the winning bidder purchases the deed to a piece of property, becoming the new owner and obtaining all rights to the property free and clear of liens, mortgages, deeds of trust, etc.

It is extremely important to know and understand which type of sale you are attending, a tax deed or tax lien/certificate sale. Each has specific rules and guidelines which must be followed promptly, and which can differ greatly county to county. It is strongly recommended that anyone interested in attending a tax sale be aware of the method and timeliness required for payment and delivery of a property. For further information, familiarize yourself with property tax law, consult a legal attorney, and contact the government agency conducting the sale.

Randy Bailiff
Dean Graziosi Real Estate Investment Coach

know your state & county regulations. Example : Here in Florida even if you're the high bidder in a tax deed sale, the deed that the county records on
your purchase/behalf is pretty much worthless; you CAN NOT refinance or resell
the property because you can't get title insurance & banks or buyers will want no part of the property.
What you need to do is have an attorney & title company get a "quiet title"; this statue makes sure that the county did everything correctly prior to the sale : notify original owners, proper advertisement in local newspapers etc. They will search the property & petition the court with the necessary documents so a judge can sign off. This is basically the same as a foreclosure proceeding. This will take 6 to 12 months depending upon the courts docket & cost $ 2500 to $3000, but when completed the property can be sold or refinanced.

If your looking for the highest payouts for tax liens check these states, I was surprised!

Arizona: tax liens pay an annual return of 16%.

Illinois: tax liens yield 18% for only 6 months... that's 36% per year.

Indiana: tax liens pay out a flat fee of 10% for the first 6 months or 15% for the second 6 months. On an annual basis, your return could be an amazing 120%.

Florida: tax liens pay 18% per year; on an annualized basis your return can be an impressive 60%.

Iowa: tax lien certificates pay an annual return of 24%.

Randy Bailiff
Dean Graziosi Real Estate Investment and Life Coach

Texas will pay out 24% penalty for 6 months or 50% for 1 year or more.

Georgia pays 20% penalty. ( penalty means that even if they pay you the next day you get 20%)
Tennessee does that as well.

Vinny,

Tax liens are a great way to make money. Certain states are far more friendlier to the investor than other states. You also need to think if your ultimate goal is to pick up a property or is it to earn income. Depending on the answer will take you to different states.

You need to also realize that certain counties and states are more friendly and open to buying "over the counter" or the internet. If my money is growing at 18% a year, I am fine with a two year redemption period. If a person cannot wait that long then know where to go for shorter redemption periods. However, be fully aware of various foreclosure costs or legal costs if you buy in states that are not what I call "investor friendly."

Liens are great and pretty simple to learn. I wish you well in your efforts.

Roy Voeks
Official Coach

As one means of generating lost income from delinquent taxpayers, county governments offer Tax Sales at auction to the public. During Tax Lien Sales, what is purchased at these auctions is not land, rather a debt to be collected on. By purchasing the right to collect past due taxes, a buyer is in essence loaning money to the property owner to pay their taxes. During Tax Deed Sales however, the winning bidder will own the deed and the land, having purchased it from the county or authority performing the sale.

A Tax Lien, or Tax Certificate Sale is a public sale, usually at auction, of the right to collect on a delinquent taxpayer's debt. This sale is held by the County, generally once each year. What is purchased by the winning bidder is not the deed to a property. The purchaser's money pays the delinquent taxes to the County on behalf of the delinquent property owner. In exchange, the purchaser is given first lien position on title, ahead of mortgages, deeds of trust, and judgments, subordinate only to State tax liens.

Under the terms of the sale which may differ greatly from county to county, if the debt is not repaid with interest (rate determined at the time of sale) within a specified time period, the purchaser of the tax lien may foreclose upon the property, and all junior (subordinate) liens are dissolved, forgiven, or otherwise not the responsibility of the purchaser. If you are interested in participating in a Tax Lien or Tax Certificate Sale, contact the county for specific information and details both about the sale and the properties.

A Tax Deed Sale is a public sale, usually at auction, of the deed to the property of a delinquent taxpayer. The Owner and all lien holders have been given ample time and have received proper legal notification that the property will be sold if due taxes are not satisfied. Different than a Tax Lien Certificate Sale, the winning bidder purchases the deed to a piece of property, becoming the new owner and obtaining all rights to the property free and clear of liens, mortgages, deeds of trust, etc.

It is extremely important to know and understand which type of sale you are attending, a tax deed or tax lien/certificate sale. Each has specific rules and guidelines which must be followed promptly, and which can differ greatly county to county. It is strongly recommended that anyone interested in attending a tax sale be aware of the method and timeliness required for payment and delivery of a property. For further information, familiarize yourself with property tax law, consult a legal attorney, and contact the government agency conducting the sale.

Randy Bailiff
Dean Graziosi Investment and Life Coach

Sounds like you are off to a great start. Wish you the best.

Ed