3 Questions For The EXPERIENCED TLC Investor
I'm 22 and brand new to this game, so thanks for any input...
1) Does anyone have info about the LENNOX GROUP? Anything you can't already learn from the website? Personal experiences?
2) What is the real difference between a TAX LIEN and TAX DEED? Any opinions on which one is better?
3) I live in MA and have talked to several county tax officials. Maybe it's because I'm young but nobody has given me a straight answer (or seems to know anything ) about the local tax auctions. Does anybody have specific information related to massachusetts tax auctions? Who to talk to? What counties? Any help is much appreciated. Thanks everyone!
Question: Does anyone have info about the LENNOX GROUP? Anything you can't already learn from the website? Personal experiences?
Answer: They investment and use your money to purchase well-researched tax lien certificates in your name all over the US. They basically act as a trustee of your investment and charge a fee for doing so. If they convert your certificates to property then they sell it and keep a percentage of the profit.
Your investment is a little more secured than doing this your self, but your Return on investment as a whole is much less.
Question: What is the real difference between a TAX LIEN and TAX DEED? Any opinions on which one is better?
TAX LIEN: A lien for outstanding or delinquent property, IRS or state taxes. Tax liens for delinquent property taxes are the most common and attach only to the property upon which the taxes are unpaid. Property tax liens normally take priority over other liens.
During Tax Lien Sales, what is purchased at these auctions is not land rather a debt to be collected on. By purchasing the right to collect past due taxes, a buyer is in essence loaning money to the property owner to pay their taxes.
TAX DEED: A Tax Deed is the instrument used in some states to convey real estate to the party that pays delinquent real estate taxes on a property, and usually the original property owner is entitled to redeem the property within a specified time period. Form of title given in the event property is sold to satisfy taxes; carries no warranties.
During Tax Deed Sales the winning bidder will own the deed and the land, having purchased it from the county or authority performing the sale.
It is extremely important to know and understand which type of sale you are attending, a tax deed or tax lien/certificate sale. Each has specific rules and guidelines which must be followed promptly, and which can differ greatly county to county.
Question: I live in MA and have talked to several county tax officials. Maybe it's because I'm young but nobody has given me a straight answer (or seems to know anything) about the local tax auctions. Does anybody have specific information related to Massachusetts tax auctions? Who to talk to? What counties?
Answer: Massachusetts varies in its bidding system from other states. The winning bid is the person who pays the total amount due, which is the lien on the property, for the smallest percentage of the property. If the property is foreclosed and the purchaser agrees to take less than a hundred percent interest, he becomes co-owner with the delinquent taxpayer. In either case, your tax lien investment may lead to you owning a home.
Your best source is to research tax county office web sites.
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