What is the process of buying tax liens :-?
I am a college student interested in investing in some tax liens, however I'm not sure how to go about it. Can anyone suggest some books or give me some advice on acquiring liens.
Tax liens are like loans made to the home owner in order to get their back taxes caught up. Each state place limits on the interest rates that can be charged. If the person does not repay the loan then you can have option to take over the property if you are first in line. People that fail to pay their taxes also have second and third mortgages on their property. Plus their property ususally has fallen into disrepair. Now this this being said, in order to get the property you will have to pay off all others in front of you. I hope this helps.
A tax lien is not a loan. It is a lien on the property.
The lien must be redeemed by the property owner in addition to any fees and interest which is due. (This varies state to state)
And all properties do not have 2nd or 3rd mortgages. Even so, if proper notification is completed (which includes other lien holders; i.e. mortgage holders), most liens are wiped out during a tax sale. The only liens I've experienced problems with removing is Federal liens from the IRS. It is not impossible, just more difficult to remove IRS liens from a property.
Most mortgage companies will gladly redeem the tax lien to maintain their stake in the property. If they don't, they could lose any interest they have in the property.
With tax liens - research is crucial.
You should go to a few tax sales and find a mentor. Offer your services to do the initial background research and property investigations - this is about all you have to offer (besides $$ to invest).
If you decide to go solo, find yourself a good lawyer familiar with tax sales and the process. Hire them to do your first lien and notifications - This will familiarize yourself with the process. You can usually ask around at the county tax office (whoever is holding the sale) to locate a lawyer.
Good Luck!
newbie2investing,
Welcome to TCI, tax paper can be a great investment if one does their home work.
What State and county will you be looking to invest.
Placing your post in the correct forum will also help in getting a better reply.
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John Michael - "Building Wealth Together"
One Deal at a time![ Edited by re4me on Date 01/01/2003 ]
I live in the MA area and I understand that they only sell tax deeds so I am thinking possibly CT, RI, or NY
Hello Dwynkoop, It is all a play on words. When one place money up front to secure the lien on the property of a person with a tax lien on their property, are you not putting your money up in hopes of gaining the said property. And if the property owner can gather up the money to pay you out (with interest and fees) is this not a loan, the said property as collateral.
do you guys know of any goods sites to get information on liens, like where and when they are available for purchase?
Try http://www.netronline.com/ and click on each state of interest and go to Assessor and click on Go to Data Online! Each Assessor if they have tax sale info will have this info on their site.
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