What About Georgia
my research indicates GA has 20%. Is this good ? Or is SC (an Hour from me) better? Are there any non profit mentoring programs for Tax Lien Certificates?
Thanks 
my research indicates GA has 20%. Is this good ? Or is SC (an Hour from me) better? Are there any non profit mentoring programs for Tax Lien Certificates?
Thanks
Here is some info on GA.
The tax sale purchaser receives a tax deed to the property. However, they cannot take immediate possession of the property, make any improvements to the property, evict any tenants, or move onto the property. Georgia law allows the property owner, or anyone with any right, title or interest in the property to repurchase (redeem) the property. Until the right of redemption has been foreclosed or the title has ripened by prescription, a tax deed has the same force and effect as a lien.
Right of Redemption
When real property is sold at a tax sale, the owner, creditor, or any person having an interest in the property may redeem (repurchase) the property from the holder of the tax deed within 12 months.
The redemption price is the bid amount, plus any taxes paid by the purchaser after the tax sale, plus any special assessments on the property, plus a 20% premium of the amount for the first year or fraction of a year which has elapsed since the date of sale, plus a 10% premium for each additional year or fraction of a year thereafter, plus the sheriff and advertisement costs. The tax sale purchaser is responsible for determining the amount payable for redemption.
Redemption of the property puts the title conveyed by the tax sale back to the owner of record subject to all liens that existed at the time of the tax sale.
Notice of Foreclosure of Right to Redeem
After 12 months from the date of the tax sale, the purchaser at the tax sale may terminate or foreclose on the owner's right to redeem the property by causing a notice(s) of the foreclosure to be served by certified mail to the owner of record and to all interest holders which appear on the public record. In addition, the notice of foreclosure is to be published in the newspaper in the county in which the property is located once a week for four consecutive weeks.
Here is some info on SC.
REDEMPTION OF PROPERTY SOLD
The defaulting taxpayer, any grantee from the owner, or any mortgage or judgment creditor has one year from the date of the sale in which to redeem the property. A redemption penalty is added to the unpaid taxes, assessments, penalties and costs which must be paid in cash or certified funds in order to redeem the property.
On June 6, 2000, the Governor signed into law a bill amending Section 12-51-90 which now reads as follows:
"Section 12-51-90, (A) The defaulting taxpayer, any grantee from the owner, or any mortgage or judgment creditor may within twelve months from the date of the delinquent tax sale redeem each item of real estate by paying to the person officially charged with the collection of delinquent taxes, assessments, penalties, and costs, together with interest as provided in subsection (B) of this section. If prior to the expiration of the redemption period, the purchaser assigns his interest in any real property purchased at a delinquent tax sale, the grantee from the successful bidder shall furnish the person officially charged with the collection of delinquent taxes a conveyance, witnessed and notarized. The person officially charged with the collection of delinquent taxes shall replace the successful bidder's name and address with the grantee's name and address in the delinquent tax sale book.
(B) Interest is due on the whole amount of the delinquent tax sale based on the month during the redemption period the property is redeemed according to the following schedule:
Month of Redemption Period Interest Imposed
Property Redeemed
First three months 3 percent;
Months four, five, and six 6 percent;
Months seven, eight, and nine 9 percent;
Last three months 12 percent.
However, in every redemption, the amount of interest due must not exceed the amount of the bid on the property submitted on behalf of the forfeited land commission pursuant to Section 12-51-55."
This amendment is in effect for all tax sales held after the signing by the Governor on June 6, 2000.
Once property is redeemed the bidder will be notified by mail and must return the original sale receipt to the delinquent tax collector before a refund check is issued. The bidder should allow at least thirty days for the processing of the refund.
VOIDING A SALE
At any time prior to title being passed the county may void the sale of an item for any reason. The purchaser is entitled to a refund of the bid amount without interest.
CONVEYING PROPERTY NOT REDEEMED
Property not redeemed will be conveyed by quitclaim deed to the successful purchaser within thirty days, or as soon thereafter as practicable, following the expiration of the redemption period. The purchaser will be notified in writing and must pay all applicable fees prior to the deed being recorded by the Register of Mesne Conveyance (RMC).
IMPORTANT NOTE:
THE PURCHASER OF PROPERTY AT A TAX SALE ACQUIRES THE TITLE WITHOUT WARRANTY AND BUYS AT HIS OWN RISK. THE COUNTY IS NOT LIABLE FOR THE QUALITY OR QUANTITY OF THE PROPERTY SOLD.
For the bidder's own protection, it is recommended that professional advice be sought if there are any legal questions pertaining to a delinquent tax sale.
Darren 2,
What a GREAT POST!
So, in Georgia, during the Foreclosure of the Right to Redeem, is it held like a regular foreclosure? Is it done by the bidder or by the county?
I've never noticed a Foreclosure of the Right to Redeem listed with the legal notices.
Mrs. Meltzer
Under current Georgia law, a person purchasing property at a tax sale is permitted to give a notice of foreclosure of right to redeem after twelve months from the date of the tax sale. The notice of foreclosure of right to redeem is required to be served on all persons having of record in the county in which the land is located any interest in the property.
Me I would keep a copy of the certified mail receipt or undeliverable envelope, and a copy of the newspaper advertisement to cover all the bases.
here is some info on georgia
can be transferred (or sold) (in accordance with Section 48-3-19(b)) to third party bidders. The transfer of an execution in many ways looks very much like a tax lien certificate (and, consequently, is even referred to as such by the Gwinnett County Tax Commissioner).
and, thereafter, clink onto the link entitled "Next" to get to the next code section.
Technically Georgia is not a certificate state, but a tax deed with right of redemption. However, if the property is redeemed, the tax deed operates in a manner similar to a tax certificate and can produce extra-ordinary annualized returns Ð 20% to 240% (or more) annualized yields depending upon the date of redemption. The annualized yield figures received upon redemption listed above are based upon the chart reproduced below and assume that redemption occurs at the beginning of each month. However, if you were to obtain a Georgia tax deed and have it redeemed the next day, then your potential annualized interest rate return could be as high as 7,300% (since you would be receiving at 20% penalty return in one day.)
Specially, Georgia statutory law provides the following:
The amount required to be paid for redemption of property from any sale for taxes as provided in this chapter, or the redemption price, shall be the amount paid for the property at the tax sale, as shown by the recitals in the tax deed, plus any special assessments on the property, plus a premium of 20 percent of the amount for each year or fraction of a year which has elapsed between the date of the sale and the date on which the redemption payment is made. If redemption is not made until after the required notice has been given, there shall be added to the redemption price the sheriff's cost in connection with serving the notice, the cost of publication of the notice, if any, and the further sum of 20 percent of the amount paid for the property at the sale to cover the cost of making the necessary examinations to determine the persons upon whom notice should be served. All of the amounts required to be paid by this Code section shall be paid in lawful money of the United States to the purchaser at the tax sale or to the purchaser's successors. (Emphasis added.) Official Code of Georgia Annotated Section 48-4-42.
Graphically, the return a Georgia tax sale investor can expect to receive during the first year would be the following:
Months
Investment Yield
Held
1 240.0% 2 120.0% 3 80.0% 4 60.0% 5 48.0% 6 40.0%
7 32.3%
8 30.0%
9 26.7%
10 24.0%
11 21.8%
12 20.0%
At his Internet web site discussed below, the Tax Commissioner, Gwinnett County, states the following:
Redemption Price:
The redemption price to be paid to you, if the original debtor chooses to redeem is the amount paid for the property at the tax sale, plus 20% of that amount for each year, or fraction of a year, elapsing between the sale date and the date the redemption is made, plus any tax paid on the property during this period by the tax purchaser after the sale. If redemption is not made within the 12-month redemption period and after the notice terminating the right to redeem has been properly issued and advertised, there must be added to the redemption price the sheriffÕs cost of serving notice, the cost of publishing notice and the further sum of 20% percent of the original amount paid for the property at tax sale. All amounts comprising the redemption price are paid to you, the tax sale purchaser.
20% plus amount paid
20% 1 year and a day
20% after notice has been served
__________________________
=60% Total after 1 year and 1 day after notice has been served.
Transfer of executions or "tax lien certificates"
At his Internet web site discussed below, the Tax Commissioner, Gwinnett County, states the following:
A property tax lien is issued on real property by the county fiscal authority (Tax Commissioner) when the property owner fails to pay the taxes. The tax lien can be purchased by a third party. The purchaser will have the same collection rights as Tax Commissioner. This procedure is referred to as a "transfer of execution". Most of the county liens are transferred after six months of delinquency. Investors earn one per cent per month [or fraction thereof] or 12% annual interest on the purchase of the tax lien.
The third party purchaser of a tax lien must show proof to the Tax Commissioner's Office their compliance with the Official Code of Georgia section 48-3-19(b), before a tax lien can be transferred. The taxpayer is required to receive a sixty-day notice prior to the transfer. The purchaser must pay the taxes on the parcel(s) with certified funds or cash.
In other words, an "execution issued for the collection of any ad valorem taxes, fees, penalties, interest, or collection costs due the state or any political subdivision thereof" (or, more simply, "a tax lien"
The Georgia statutes governing the potential yield for these execution "tax lien certificates" provides that the interest rate 1% per month or fraction thereof or an annualized return of 12%. Official Code of Georgia Sections 48-3-19(e), 48-3-20 and 48-2-40. Additionally, this annualized yield could be increased because Official Code of Georgia Section 48-3-19(c)4 provides that "governing authority [transferring such executions] shall be authorized to allow a discount of up to 10 percent of the amount of the execution." (Emphasis added.)
Locating Law Governing Georgia Tax Sales
The basic Georgia statutory law governing tax sales in Georgia can be found in the following code sections:
O.C.G.A. ¤¤ 48-4-1 through 48-4-81
and the law governing the sale of "executions" can be found in the following code sections:
O.C.G.A. ¤¤ 48-3-19 through 48-3-23
For an Internet web site which provides links to various sources of Georgia law on the Internet, go to the following web site address:
http://www.law.cornell.edu/states/georgia .html#codes
Georgia statutory law can be found at the following web site address:
http://www.ganet.state.ga.us/services/ocode/ocgsearch.htm
More specifically, the above-referenced code sections can be found by entering the initial code section mentioned (i.e., "48-4-1" for tax sales or "48-3-19" for sales of "executions"
Addresses of Local Officials Dealing with Tax Sales
Information on county officials for Georgia's 159 counties can be obtained at the following Internet web site addresses:
http://www.NACo.org/counties/counties/state.cfm?state=ga
http://hpi.www.com/gacty/index.html
The following Internet web site address provides links to the various Georgia counties which have home pages:
http://hpi.www.com/gacty/home.html
The Tax Commissioner, Gwinnett County, has an Internet web site which provides a fairly detailed explanation of the Georgia tax sale process as it is applied in Gwinnett County at the following web site address:
http://www.tax.co.gwinnett.ga.us/taxsaleinf.htm
Nick,
Thanks great resources. Just answered my question about where to find tax lien in Georgia.
Anyone been to the sale or been purchasing in Gwinnett or Hall?