Discover a Step-by-Step Plan to Create Wealth With Tax Liens and Deeds
By Elwood Daniels
How to Become a Millionaire During This Recession.
You might have seen all of the late night infomercials telling you how
easy
it is to earn money. All you have to do is buy their product, and after
you
buy their product then buy another one. The truth is that these same
infomercials are selling educational products and not a true investment
program. They are not giving you a system to take advantage of the
current
Recession. This article is designed to introduce you to a couple of
concepts that you will need to have to start investing in Tax Liens and
Deeds. After you have read this article you will have a strong starting
point to walk into any courthouse in the United States and have a
successful
plan of action that will create earnings over 12%.
The Story
Thousands of homeowners are late in paying their property taxes. But the
counties they live in need the money now. Everyone that works for the
county must be paid. The employees of the county cannot and will not wait
for their checks while some of the residents ignore their taxes. All of
the
employees that provide services that you expect like water, roadways,
trash,
police and fire protection have to be paid. So, if you as an investor
will
pay these back taxes now, then the county will take care of you. When the
homeowner or mortgage company finally pays the back taxes the county will
send you a
check for what you have paid plus interest and/or penalty fees. What if
the
homeowner does not pay his back taxes? 99 out of 100 homeowners will pay
their taxes but you might just end up with the property. The late night
gurus like to have you think that owning the property is a good thing and
is
easy. Let us say up-front: It could be a very good thing or a very bad
thing for you and your investment capital. Keep on reading to learn why.
Tax Liens
A Tax Lien sale is the sale, conducted by a governmental agency, of tax
liens for delinquent taxes on real estate. It is one of two methodologies
used by governmental agencies to collect delinquent taxes owed on real
estate, the other being the tax deed sale.
Tax Sales Challenge
· Payment is usually required at purchase
· There will be rules to protect the lien holder's rights after your
purchase. Failure to comply with these rules can make your lien worthless.
· Tax liens on "choice" properties are quickly purchased by major
institutional investors
· Unlike a "Certificate of Deposit", tax liens are illiquid. They cannot
be
"cashed in".
· Some experts tout tax lien sales as a means of acquiring property at
highly discounted prices. In practice, except for very rare instances all
of
liens of any value are redeemed well before the property can be
foreclosed.
· If someone is successful in attaining the deed to the property, the
property might have environmental problems for which the new owner (you)
will be responsible for.
· There may also be other governmental liens (such as weed liens or
demolition liens) that the investor must pay off when attaining title to
the
property. These are not part of the lien sale and remain even if the lien
holder acquires the property.
· If the owner of the property declares bankruptcy, the bankruptcy court
may
lower the interest rate to be paid, or may discharge part or the entire
lien, leaving the lien holder with nothing.
The Process for Lien States
In a tax lien state, the lien is offered to prospective investors at
public
auction. Most auctions are held in person; however, Internet-based
auctions
(especially within large counties having numerous liens) are becoming
popular. The investor must wait a specified period of time (referred to as
the "redemption period"), during which time the property owner (or someone
with an interest in the property) may repay the lien with interest.
Usually
the lien holder is not permitted during this period to contact the
property
owner (or anyone else having an interest in the property, such as the
mortgage holder) to demand payment or threaten foreclosure, or else the
certificate can be forfeit.
The Process for Deed States
The minimum bid is generally the amount of back taxes owed plus interest,
as
well as costs associated with selling the property. In the event the
property is not purchased, title reverts to the government. The government
may then attempt to sell the property at a public auction and/or offer it
for sale in a private transaction. In most cases, the jurisdiction will
only
provide a quitclaim deed at the sale, which is usually insufficient for
title insurance. Therefore, a "quiet title" action must be filed in court
to
obtain an insurable title.
The Process
· Find your counties web site
· Find Properties that are delinquent in paying their taxes
· Find what the County *****sors has valued the property
· Find out detailed information on the property (i.e. how many bedrooms,
bathroom, sq footage and more)
· Look at Property
· Go to the auction and make your bid
Tattered Financial Group has created a system for it private investors to
win at the Tax Lien and Deeds auction process. For further information
you
can go to our website at: www.tatteredfinancialgroup.com/eclass.aspx
We also welcome your questions at investment@[EMAIL PROTECTED]
Daniels
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