How do you purchase tax lien properties?
Anyone familiar with the tax lien purchase process? I know the county holds a tax sale for delinquent properties but what happens after you buy a property? If the property has a mortgage lien, what happens to it after the tax sale?
Where I live you must pay any county, city, or other gov't liens and any mechanic's liens. The mortgage remains with the previous owner.
You must file for a Quiet Title and have one granted before you can get title insurance. Quiet Title takes 3-6 months and costs anywhere between $1,500 and $3,000.
It varies greatly, depending on where in the US the property is located.
Tax Lien Sales - Guide That Explains The Secrets Of Tax Lien Investing?
6 Responses to “How do you purchase tax lien properties?”
GO on net/ck out John Beck/ Freee & Clear
Comment made on May 26th, 2009 at 9:46 pmReferences :
call 1-800-829-1040. Thats the IRS. Ask to speak to a lien specialist in collections. Im a Rev Agent
Comment made on May 26th, 2009 at 10:30 pmReferences :
Where I live you must pay any county, city, or other gov't liens and any mechanic's liens. The mortgage remains with the previous owner.
You must file for a Quiet Title and have one granted before you can get title insurance. Quiet Title takes 3-6 months and costs anywhere between $1,500 and $3,000.
It varies greatly, depending on where in the US the property is located.
Comment made on May 26th, 2009 at 11:06 pmReferences :
It depends on the state you live in. In most states but not all, non government liens are wiped out at a tax lien sale.
Some states have a redemption period so even if you purchase the property at a tax lien sale, you can not get title insurance on it until the redemption period has passed.
This is high risk investing.
BOB FORD
Comment made on May 26th, 2009 at 11:54 pmReferences :
The first thing you have to do is decide in which county you want to purchase the tax lien in. Some counties allow you to purchase tax liens over the counter whilst some only sell at auctions.
Here's an example-Texas sells tax liens on the first tuesday of each month and they allow over the counter sales, while Utah only sells deed at auctions and this happens once a year on the third and fourth thursday in may.
To participate in an auction just call the local county courthouse or city hall to find out when they are holding tax lien auctions.
Comment made on May 27th, 2009 at 12:23 amAbove and all tax liens are a good investment because even if you don't get the house you are guranteed a high return on your investment- sometimes as high as 180% but never lower than 10%.
References :
Up to Date Comprehansive info on Tax Liens at -
http://www.theadventurecouple.com/htmlredir.html
Usually the properties sold at tax sale, don’t have mortgage liens. If there is lender, the lender will pay the delinquent tax, because the property tax is higher priority lien over the mortgage, and the lender doesn’t want to lose its interest. You must do the rigorous due diligence, some of the properties are contaminated. In California, after you buy property at tax sale, the previous owner has 1 year to challenge the validity of the tax sale.
Comment made on May 27th, 2009 at 12:55 pmLeave a Comment