Types Of Jurisdiction
This question is about foreclosing on a tax lien. I am interested in investing in AZ, CA, CO, FL, NY, TX.
I understand that during the initial stage of foreclosure, the lien holder must record a notice of default and file a judicial lawsuit against the defaulting owner of the property. After that, the property owner will be given a reinstatement period which then can be used to pay-off the deaulted proeprty, restructure the debt or to sell the rights to the property to another third party.
Taking the example of California where an investor has to wait one year after winning the tax deed in auction before commencing the foreclosure process, is the one year the so called reinstatement period? The same for Texas where the period that one has to wait is 6 months to 2 years depended upon the type of property?
I just want to make sure that I am not mixing this reinstatement period where property owner can restructure the debts owed with the redemption period. Or does redemption period = reinstatement period?
Upon speaking to some of my friends who are, like me, amateur tax lien investors, they say that different types of jurisdiction affect whether the states that I am interested in has a reinstatement period or not. They cite that in some counties in the states (such as Texas) which I am interested in investing in - they are no reinstatement periods and the tax deed winner can commence the foreclosure period immeidately after winning the tax deed!
Please I would be extremely grateful if somebody can clear up my confusion of reinstatement period in foreclosure, redemption period and the types of jurisdiction in different counties where they may be no reinstatement and redemption period?
I am tremendously confused at the moment! Thank you for answering!
:-? :-? :-? :-? :-? :-? [ Edited by TSYY on Date 08/05/2004 ]
TSYY--(NY)-----------------
Nothing you have said is correct, with the exception of "I am tremendously confused at the moment!" and "...amateur tax lien investors, they say that different types of jurisdiction affect whether the states that I am interested in has a reinstatement period or not." Their comments about TX are in error.
You need to read about this topic. You need to study up on the topic if you want to join the game. You should look for books and courses on the topic. Every state has different laws related to the collection of delinquent property taxes.
I recommend John Beck's "Free and Clear" program available at his www.johnbeck.net website for about $50. It covers all states and the Canadian provinces, as well as territories and possessions of the US.
For about $80 you can get a volume devoted to a specific state from Roy Stubblefield. You can find his website easily by searching for his name on the internet. He has discounts for buying multiple state volumes.
There is a fellow with a middle eastern name Bazarrahs or similar that has a TX tax sales educational program. I have not seen it. I have the other two references and have read them. I have seen at least one person who was dissatisfied with this this program. So, you might want to inquire about refund policy before buying. He has posted some here on this forum, so you can search for "TX" or "texas" and probably find his name and then search on that to find his website.
You should do searches here on this forum for the states in which you are interested and their abbreviations. You can get a lot of information that way.
If you are interested in the investment return of tax liens as opposed to acquiring properties with tax sales and tax liens, you can find "The 16% Solution" by Moskowitz helpful. It is low cost and available on the internet. It is a bit dated, but still a good low-cost source of information on the topic. John Beck also discusses this topic in his program.
Good Investing*************Ron Starr************