There are a couple of reasons to lose your home to a foreclosure. The most common is not paying the mortgage. Remember that financial struggles can jeopardize your right to stay in a property. However, the law states that you cannot be evicted right away.
Do take note that the lending institutions would serve notices to you before an actual foreclosure can proceed. Also, some states would allow you to stay up to the last day, until the deed is transferred to the new owner.
Failure to pay the taxes can also cause you to lose your property. If you owe money to the Internal Revenue Service, they can seize your property as payment to the IRS tax lien debt owed.
One of the keys to a successful investment in tax lien properties is conducting a proper home inspection before investing. Banks in most cases owns foreclosed properties and would ask for a home inspection report. However, just in case it does not, you must acquire a home inspection report for your money’s worth and benefit.
Up-to-date home inspections are crucial as it informs you of any defects and present modifications to the property. The home inspection also helps you convey future prospects of the property. Aside from getting the services of a home inspector, you need to visit the property together with your real estate agent. Do this in order to avoid wasting your money in a property with bad capital appreciation rates.
When investing for tax lien certificates, do not forget that some counties and jurisdictions in the United States require large deposits from investors at the start of the auction. It is regardless of the tax lien certificate amount that you are looking to purchase. Moreover, payments of these liens are usually in cash and due on the spot. Failure to pay the full amount can potentially result in barring you from future tax lien sales.
Do take note that lien certificates are almost worthless, until the designated time frame provided for the original property owner to pay up his tax debt. Furthermore, lien certificates cannot be traded for cash. So, keep it or until the fees are settled by the property owner.