Tax Deed States Vs. State Lien States
Help! Can someone explain the difference between Tax Deed States and Tax Lien States? 
:-D [ Edited by drcoleman2 on Date 10/17/2004 ]
Help! Can someone explain the difference between Tax Deed States and Tax Lien States? :-D [ Edited by drcoleman2 on Date 10/17/2004 ]
In a tax deed state the property is auctioned off to pay the back taxes, and a deed is issued.
In a tax lein state, there is a lein placed on the property in the name of the winning bidder. After w specified period of time (which varies from state to state), the holder of the lein can foreclose on the property. If the property owner is not able to satisfy the lein, and none of the junior lein holders (if any) redeem it, the county can issue the lein holder a deed
This process varies from state, and how the bidding process occurs varies from state to state. I would encourage you to become familiar with the way tax sales are conducted where you want to invest. Attend an auction, Go to the courthouse, or possible online to research properties. Ask others in the know questions etc.
Good luck,
Jeff
Thanks Jeff12002! Do you have any recommendations on books to read on Tax Deeds/Liens for California and Texas?
Danielle