A Brief Overview of Tax Lien Investing
The tax portion of the term typically refers to unpaid property taxes. The dictionary definition of lien is:
"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.
Investing in tax liens is not just 100% legal but you are also protected too. This is because tax lien is a product made by the federal government and therefore you are safe as you would be protected from the state that you bought the tax lien from. Also, for your convenience, they would be the one to handle the whole tax lien process for you.
Tax lien certificates are usually sold at tax sales organized by a county or municipal official. It is ultimately open and safe due to the fact that tax lien investors actually pay the officials the required taxes.
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.
Tax lien certificate is an investment that requires your attention and time. If it happens that you have made good purchases and have research the properties that are attached to the tax liens, then you would most likely be happier to acquire a property through foreclosure. However, the list of properties that you will usually have before the sale from the tax office is minimal only, in which it would only tell less about the property. Most often than not, you'll only acquire the tax ID, amount owed and owner of record.
The first thing that you have to do is look up the assessment information on the property and find the address. Physically looking at the property is best so youll be sure that the assessment information is up to date. Make sure that the property is worth considerably more than the amount thats owed for back taxes. Keep in mind that you may have to pay the taxes on this property throughout the redemption period (if it doesnt redeem) before you can 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. - 23199
"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.
Investing in tax liens is not just 100% legal but you are also protected too. This is because tax lien is a product made by the federal government and therefore you are safe as you would be protected from the state that you bought the tax lien from. Also, for your convenience, they would be the one to handle the whole tax lien process for you.
Tax lien certificates are usually sold at tax sales organized by a county or municipal official. It is ultimately open and safe due to the fact that tax lien investors actually pay the officials the required taxes.
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.
Tax lien certificate is an investment that requires your attention and time. If it happens that you have made good purchases and have research the properties that are attached to the tax liens, then you would most likely be happier to acquire a property through foreclosure. However, the list of properties that you will usually have before the sale from the tax office is minimal only, in which it would only tell less about the property. Most often than not, you'll only acquire the tax ID, amount owed and owner of record.
The first thing that you have to do is look up the assessment information on the property and find the address. Physically looking at the property is best so youll be sure that the assessment information is up to date. Make sure that the property is worth considerably more than the amount thats owed for back taxes. Keep in mind that you may have to pay the taxes on this property throughout the redemption period (if it doesnt redeem) before you can 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. - 23199
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 @ 3:35 AM
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