Check This Out Before Entering Tax Lien Sales

Check This Out Before Entering Tax Lien SalesSale of tax lien is an alternative way of property investing. When a homeowner defaults in his taxpaying obligations to the government, the county places a lien on his property. Then, they sell it to interested investors at a tax sale. The county needs to do this so that they can recover unpaid property taxes and provide public services.

Tax lien sales are implemented in different options such as bidding for the lien and buying it over the counter. Also, each county have their own procedures and laws used for the bidding. Bid types are the regular rotational bidding style and the bid down the interest method.

Furthermore, when it comes to the interest and redemption, each state has its own regulations too. The redemption period is different for each as well as the interest rates. This is why due diligence and lots of research is needed for every property that the investor is interested in. Know the procedures of the sale, requirements, terms and conditions before buying a lien.

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