Tax Liens An Overview
The tax portion of the term typically refers to unpaid property taxes. The dictionary definition of lien is:
"The legal claim of one person upon the property of another person to secure the payment of a debt or the satisfaction of an obligation."
Tax lien uses the property of an individual as the collateral of a tax-related debt owed to another party as a security of the settlement. While the debt is initially owed to the government which places the taxes, after a certain period of time passes, these government agencies will then auction the unpaid debts in order to compensate their own expenses promptly, and to open new opportunity for savvy investors.
Tax liens are a product of the local governments and are not only 100% legal, but the interests of the investors are protected by each state they purchase from. To their gain, State governments will organize the entire tax lien procedure.
Also, buying tax lien certificates is completely safe and open because the investors are actually true to their words and do pay the required taxes imposed. These certificates can be bought at tax sales where a county or municipal official is conducting it.
If everything else has been settled, the lien will then be handed to the investor from the government. If this is already complete, the investor will now have the right to collect all of the stated interest that has been made by the government. The usual interest stated in the lien is between 8% and 25% per year.
To be fair, the property owner is given a time frame wherein he/she should pay a stated amount of the tax, interest and other related fees. But if the owner fails to pay on the given time, the investor will now have the right to foreclose the property because of the lien.
Tax lien is a highly attractive investment. Since a thousand dollars or paying any brokerage fees is out of the question, tax lien certificates are very impressive investment.
Tax lien certificate is an investment that requires your attention and time. If it happens that you have made good purchases and have research the properties that are attached to the tax liens, then you would most likely be happier to acquire a property through foreclosure. However, the list of properties that you will usually have before the sale from the tax office is minimal only, in which it would only tell less about the property. Most often than not, you'll only acquire the tax ID, amount owed and owner of record.
In addition to this, when making your first investment, it is highly advisable that you have a copy of the assessment information first and then locate the property. If you already have the address, it does not hurt if you pay a visit to the property and see for yourself if the assessment is updated. Also, through visiting, you will have an idea whether the property costs more that what is owed for back taxes. Always bear in mind that there is a possibility, if it does not redeem, that you will have to pay the taxes of this property throughout the period of redemption before you can actually foreclose on it and apply for a deed.
Foreclosing on tax lien properties will really certify you a profit that is usually several times your initial investment. - 23196
"The legal claim of one person upon the property of another person to secure the payment of a debt or the satisfaction of an obligation."
Tax lien uses the property of an individual as the collateral of a tax-related debt owed to another party as a security of the settlement. While the debt is initially owed to the government which places the taxes, after a certain period of time passes, these government agencies will then auction the unpaid debts in order to compensate their own expenses promptly, and to open new opportunity for savvy investors.
Tax liens are a product of the local governments and are not only 100% legal, but the interests of the investors are protected by each state they purchase from. To their gain, State governments will organize the entire tax lien procedure.
Also, buying tax lien certificates is completely safe and open because the investors are actually true to their words and do pay the required taxes imposed. These certificates can be bought at tax sales where a county or municipal official is conducting it.
If everything else has been settled, the lien will then be handed to the investor from the government. If this is already complete, the investor will now have the right to collect all of the stated interest that has been made by the government. The usual interest stated in the lien is between 8% and 25% per year.
To be fair, the property owner is given a time frame wherein he/she should pay a stated amount of the tax, interest and other related fees. But if the owner fails to pay on the given time, the investor will now have the right to foreclose the property because of the lien.
Tax lien is a highly attractive investment. Since a thousand dollars or paying any brokerage fees is out of the question, tax lien certificates are very impressive investment.
Tax lien certificate is an investment that requires your attention and time. If it happens that you have made good purchases and have research the properties that are attached to the tax liens, then you would most likely be happier to acquire a property through foreclosure. However, the list of properties that you will usually have before the sale from the tax office is minimal only, in which it would only tell less about the property. Most often than not, you'll only acquire the tax ID, amount owed and owner of record.
In addition to this, when making your first investment, it is highly advisable that you have a copy of the assessment information first and then locate the property. If you already have the address, it does not hurt if you pay a visit to the property and see for yourself if the assessment is updated. Also, through visiting, you will have an idea whether the property costs more that what is owed for back taxes. Always bear in mind that there is a possibility, if it does not redeem, that you will have to pay the taxes of this property throughout the period of redemption before you can actually foreclose on it and apply for a deed.
Foreclosing on tax lien properties will really certify you a profit that is usually several times your initial investment. - 23196
About the Author:
Steve Jonas is an expert in tax liens. For more information on tax liens visit theNational Association of Tax Lien Investors
posted by X - Men @ 1:00 AM
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