Investing In Tax Liens - Overview
The tax portion of the term actually regards to property taxes that were not paid. According to the dictionary, 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 uses an individuals property as collateral to ensure the settlement of a tax-related debt owed to another person or entity. While initially that debt is owed to the government that imposes the taxes, after a set amount of time these government agencies will auction unpaid debts to recoup their own expenses more quickly, opening an 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.
Also, buying tax lien certificates is completely safe and open because the investors are actually true to their words and do pay the required taxes imposed. These certificates can be bought at tax sales where a county or municipal official is conducting it.
Once the lien has been transferred from the government to the investor, the investor is entitled to collect the stated interest that is set by the government. This interest can range from 8% to 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.
Though this does not require a lot of money, tax lien investing does require your time. Before making an investment, you should at first research on it to be able to get a good investment. This is because if you only depend on the tax office, a lot of times, you will only get the tax ID, owner of record and amount owed. Nothing less but you should be lucky if you find more.
In addition to this, when making your first investment, it is highly advisable that you have a copy of the assessment information first and then locate the property. If you already have the address, it does not hurt if you pay a visit to the property and see for yourself if the assessment is updated. Also, through visiting, you will have an idea whether the property costs more that what is owed for back taxes. Always bear in mind that there is a possibility, if it does not redeem, that you will have to pay the taxes of this property throughout the period of redemption before you can actually foreclose on it and apply for a deed.
Yet, if you invest in tax lien, foreclosing properties will surely make you gain more profit and is several times bigger than that of your initial investment. - 23208
"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 uses an individuals property as collateral to ensure the settlement of a tax-related debt owed to another person or entity. While initially that debt is owed to the government that imposes the taxes, after a set amount of time these government agencies will auction unpaid debts to recoup their own expenses more quickly, opening an 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.
Also, buying tax lien certificates is completely safe and open because the investors are actually true to their words and do pay the required taxes imposed. These certificates can be bought at tax sales where a county or municipal official is conducting it.
Once the lien has been transferred from the government to the investor, the investor is entitled to collect the stated interest that is set by the government. This interest can range from 8% to 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.
Though this does not require a lot of money, tax lien investing does require your time. Before making an investment, you should at first research on it to be able to get a good investment. This is because if you only depend on the tax office, a lot of times, you will only get the tax ID, owner of record and amount owed. Nothing less but you should be lucky if you find more.
In addition to this, when making your first investment, it is highly advisable that you have a copy of the assessment information first and then locate the property. If you already have the address, it does not hurt if you pay a visit to the property and see for yourself if the assessment is updated. Also, through visiting, you will have an idea whether the property costs more that what is owed for back taxes. Always bear in mind that there is a possibility, if it does not redeem, that you will have to pay the taxes of this property throughout the period of redemption before you can actually foreclose on it and apply for a deed.
Yet, if you invest in tax lien, foreclosing properties will surely make you gain more profit and is several times bigger than that of your initial investment. - 23208
About the Author:
Steve Jonas is an expert in tax lien investing. For more information on tax liens visit theNational Association of Tax Lien Investors
posted by X - Men @ 6:20 AM
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