I am looking at tax liens in NY because you can go to court and sieze the property after 3-4 months according to what I read in BE A REAL ESTATE MILLIONAIRE.
I am looking at FL because of NO STATE INCOME TAX.
However, I am confused a little about what years taxes you are purchasing with the lien. Also, would I have to keep paying the taxes during the redemption period so that no other liens can be purchased?
Was curious if anyone with experience in these states could walk me through the processes in these states.
Thanks for the help.
Eric
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from my knowledge, once you paid for the lien, whatever is due during the redemption period will have to be paid by the current home/property owner. so eventually, you get your investment back, plus the interest, plus the amount they owe in total.
if they don't redeem the lien, the government still wont get paid anyways, so in another word you are not responsible to pay their tax just because you bought off their lien. you are still not the property owner. but once the property is foreclosed and you get possession, it will be your responsibility.
correct me if i'm wrong anybody? again this is from my knowledge, i can still be wrong...
and by the way, can you share a little more detail about seizing the property after 3 or 4 months? because although tax lien is a great investment, but if the return time can be a lot sooner, it would be even better, so we dont have to sit on our money for 3 years..
thanks
apparently some state/county will require you to endorse future tax years just in case if the current owner fail to redeem their lien in the future...
i think its best to check with local tax assessor before purchasing any liens.
but does anyone have any more specific knowledge to this?
If you have the book BE A REAL ESTATE MILLIONAIRE, go to page 243, 2nd paragraph.
It states: In New York, when you purchase a piece of property for taxes, you get what is called a quitclaim deed. You have to keep possession of this deed for a certain length of time, such as eighteen months. Within that time, the original owner has the opportunity to pay the taxes owed to the county plus a penalty and interest.
In paragraph 3 it states a couple ways to get around the redemption period.
It states: First, my attorney could do an article 15, which in New York is an action taken by the purchaser to "quit" anyone who may want claim to the property. This process is a notification that if anyone has a claim to the property, they have to show up in court to prove it. In most cases, the person who lost the property is not going to challenge transfer of ownership.
The second option was that if the previous owner signs off on the deed (meaning volunteering to sign ownership over to you), you can get a transferable deed that you could get title insurance on immediately. Basically no waiting, no costs!
Hope that helped JC. I know that it has helped me reading it again and typing it here for you. I have read this book 4 times and I learn new things everytime. Keep in mind, that is for NY and may not work in other states.
Goodluck in all your endevors,
Eric