Tax Lien Certificates

deepestluv · 12-14-2012, 09:30 PM

Any one have any advice or knowledge about tax lien certificates....
I have been reading a little about tax lien and deed sales (I think tax lien may be better though). I know some states don't do certificates and also tax sales investing in some states is better than others.

Anyway is there anyone who has invested in tax sales? what were your outcomes? Would you suggest it?

TalHotBlond · 12-14-2012, 09:48 PM

Do you mean putting a tax lien on a property that has past due taxes and about to lose the property? Or something else?

Still Standing · 12-14-2012, 09:53 PM

My mother was on the other end of a tax lien sale. She was short $50 of her water bill and they sent the house to the city's tax sale. I wound up having to pay a few thousand to get the lien back. This was a few years ago and I'm still pissed, but I keep watch on her city bills to be sure it doesn't happen again. But you can definitely make out nice if you know what you're doing!

DyKisha · 12-14-2012, 09:56 PM

You can literally steal a house if you do the right research. I had studies this awhile back because I was thinking about taking over a family member's house.

You can buy it and 1. evict or collect rent.

like some people litterally owe maybe a couple thousand dollars or even a couple hundred. In a sense to me it is almost better than obtaining a mortgage.

rolexgold · 12-15-2012, 02:25 AM

Yea! I know it's like hitting the lottery for 1 million dollars; that's just enough to get into some real trouble, if you don't know exactly what you're doing.

deepestluv · 12-15-2012, 09:27 PM

this basically tells what a tax lien is.....

A tax lien certificate is nothing more than a lien on a property for not paying taxes. Essentially, each and every year owners of real estate have a tax lien (aka financial obligation to pay taxes) placed on their real estate. If the property taxes are paid on time the tax lien is removed. If they are not paid in due time, the county will allow investors to pay on behalf of the real estate owner.

The winning bidder at the public tax lien auction receives a tax lien certificate as proof of purchase. As the owner of the tax lien certificate the investor may expect one of two possible outcomes, 1) An annualized return of 16%, 18%, up to 50% per year on what they paid to obtain the tax lien certificate or 2) Through foreclosure, become the owner of the real estate free and clear of any junior liens (aka mortgages and mechanics liens).

Once you become the owner of the tax lien certificate all you must do is sit back and wait. When the property owner finally decides to pay his tax obligation he / she must pay a visit to the county tax collectors office where he/she will repay what you paid to acquire that tax lien certificate plus interest. At this point the government will contact you, ask you to return the tax lien certificate and upon receipt of the tax lien certificate the government will generate a check in the amount you paid to acquire the tax lien certificate plus interest.

deepestluv · 12-15-2012, 09:31 PM

Quote:

Originally Posted by MiSSter_Z

You can literally steal a house if you do the right research. I had studies this awhile back because I was thinking about taking over a family member's house.

You can buy it and 1. evict or collect rent.

like some people litterally owe maybe a couple thousand dollars or even a couple hundred. In a sense to me it is almost better than obtaining a mortgage.

or you could just clean it up and sell it.

DyKisha · 12-16-2012, 12:02 PM

Quote:

Originally Posted by deepestluv

or you could just clean it up and sell it.

yall one of the many things you could do if you evict someone already living there but in this housing market you might be better off leaving tennants in collecting rent or just moving in yourself.