Tax Lien Time Frame
How long must I hold onto a tax lien before I can start the foreclosure process? And how long does it take for the foreclosure...if it forecloses?
How long must I hold onto a tax lien before I can start the foreclosure process? And how long does it take for the foreclosure...if it forecloses?
smallinvestments--(MD)----------------
Every state has different periods. Study the state statutes on the collection of delinquent property taxes for the state in which you are interested investing.
Also, try reading some websites for the government entity that conducts the sales: tax collector or treasurer, or whoever handles them. Try several different counties to see what they say.
Good Investing**********Ron Starr*************
Follow Ron's suggestion and add one more item to the list. Some states have redemption periods so even after you obtain the property the prior owner can come back and recover the property.
In at least one state you can start foreclosure after X years but you could wait two extra years before starting and eliminate the redemption rights.
Assuming you have received the property you need to check what it will take to get title insurance. You may need to do a few more things to make the title completely marketable. Again, this tends to vary by state and the process you use to foreclose.
Remember that 99.5% of all liens on residential property are redeemed. More so when there are improvements on the land. Almost always when there is a mortgage. Very much a numbers game.
John
Thanks, I'll look into it...I heard rumors of having to hold on to them for 10 months to a year....just was not sure.
Thanks.