Tax Lien Certificate Basics and Assurance

Tax Lien Certificate Basics and AssuranceBidding on a tax lien certificate is the first step in acquiring its benefits.  Knowing how to bid correctly is important to the success of getting the property you’d like to own.  Tax lien certificate auction is quite different from the usual sale of tax delinquent properties.  It is because the certificate being on bid is the amount of tax debt to be paid by the homeowner and not the property itself.

With tax lien certificate investing, you win either way.  You get a profit from the interest rate accumulated after the homeowner redeems his property, or acquire rights to ownership if he fails.  Plus, it is secured by the government.  You gain the assurance that all transactions made are safe.  You really get your money’s worth.


Tax Lien Certificate Facts You Need to Know

Tax Lien Certificate Facts You Need to KnowThere are homeowners who either forget to pay their tax responsibilities or intentionally avoid it. In cases like this, the county is going to issue tax liens on the property of the delinquent taxpayer. When the tax liens are imposed, it becomes a great opportunity for you to secure the tax lien certificate by bidding in auctions conducted by the county.

After successfully bidding in an auction, you would get the tax lien certificate. This does not grant you the ownership of the property yet. This means for the moment that the delinquent homeowner needs to pay his tax debt or lose the property. The title of the property can only be awarded to you after several months or years, if the homeowner is unable to make his payments. Therefore, it is important to hold on to your tax lien certificate since it is a wonderful option on a worthwhile investment.

What is a Tax Lien Certificate?

What is a Tax Lien Certificate?Let’s begin by understanding the definition of a tax lien.  Counties put a lien on a parcel for the reason of delinquent taxes by the homeowner.  Then, the county publishes a list of all tax sale properties available.  They set a time and place where the auction would be held.  They also give out information on what to bring along as well as the fees required.

The treasurer of the county usually does all the auctioning on the day of the sale.  If you decide to purchase a tax lien certificate, you’re going to be the lien holder of the parcel.  By becoming a lien certificate holder, you need to understand two situations.  First, once you invest your money, you’re guaranteed on profits with your initial investment.  Second, if the homeowner doesn’t pay his back taxes on the due date, then you can foreclose the property and apply for rights of ownership.  You become the new property owner with no mortgage or other liens.  As you can see, tax lien certificate investing is not only fun but also very rewarding.

Do You Want to Invest in Tax Deed Auction?

Do You Want to Invest in Tax Deed Auction?Are there things to be aware of if you want to invest in tax deeds for sale?  Here are some pointers:

Lots of U.S. counties vary in regulations about tax sales in their respective areas.  It is best to research online via the internet about the background of the county to save time.  Use the websites wisely by acquiring the list of auction schedules that are being offered.  This may be a tedious task but would really pay off in the end knowing that you can get properties at a cheap price.

Whether you have previously joined in a tax deed auction from a different county or not, it is still very important to know the whole process before purchasing tax deeds.  Furthermore, remember to make an account prior to bidding and buying off properties.  Counties do not need fees when creating an account for interested investors.  However, you must verify this before making an account in the county where you’re planning to buy tax deeds to avoid problems.

Answer These Questions Before a Tax Property Sale

Answer These Questions Before a Tax Property SaleWhat is your motive for purchasing a tax sale property? Is it for more profits and the possibility of owning a new home? Before doing so, check if you have enough money to purchase the property which may be more than the suggested price. It is because you need to consider the taxes involved as well as any possible repair expenses.

There is another question you need to think about. Do you have the time and patience to process the papers required in order to buy a tax sale property? If you don’t, then these types of affordable properties are not suited for your needs. Keep in mind that these two are needed to inspect a property, fill up the necessary forms, and fulfill requirements.

If you have the answers to these questions and is prepared to do the task ahead, then it’s time to join tax lien and tax deed sales.

Best Options to Buy Tax Sale Property

Best Options to Buy Tax Sale PropertyIf you want to purchase tax sale properties, whether tax liens or tax deeds, one of the best options is to buy it directly from the homeowner.  This is a win-win situation for you and the other parties involved.  The homeowner gets out of the mortgage without damaging his credit rating.  The lender saves time and expenses that are related to the tax sale property.  You as the buyer get an affordable property at far less than its real market value.

Another option is to purchase tax delinquent properties directly from the banks.  You would be assured of getting a clear title deed of the property.  Usually, the bank would appoint a trustee to handle the property sale.  Talk to the trustee to get each detail on the property, and the minimum bid that the bank would accept.