question on tax liens - 2007/04/04 18:00I want to start investing in tax liens, I live in Tucson, AZ. Is this info correct, first I buy a tax lien on a property for 16% or less, if after 3 years the taxes haven't been paid, the property goes to an auction, where other investors and I will bid on the tax deed? whoever wins the bid of the tax deed will be the new owner of the property? About how much do these tax deeds sell for? thanks, Monica
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Luanne
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Posts: 70
Re:question on tax liens - 2007/04/04 18:49Hi Monica,
It looks ilke you have a pretty good understanding of tax lien investing.
As for your question, "how much do these tax deeds sell for?" Well, that depends. There is no set price especially with any kind of auction. You never know how hight the bids can get. Basically, the amount can range from the taxes owned to just below the worht of the property.
Hope this helps.
Thanks,
Luanne TaxLiens.com Moderator
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johnson_tp5
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Re:question on tax liens - 2007/08/10 16:32Where is the profit in purchasing a tax lien when the property still goes to auction if the owner does not pay, and you have to fight for he property after you have already paid the taxes on it???
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phmx17
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Posts: 2
Re:question on tax liens - 2007/08/10 23:02good question. I was under the impression that the ownership of the property goes to the lien investor by default if the lien is not paid on time. -pennies to the dollar ...???? please advise
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Luanne
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Posts: 70
Re:question on tax liens - 2007/08/13 15:28Hello tax lien users!
Yes, that is a very good question and the answer is: It depends on the state.
Many states conduct the tax deed auction and many issue the deed over to the first lien holder.
You will have to study your state or county laws to find out exactly how you can benefit. Otherwise, tax lien investing is still very profitable due to the high interest rate.
Thanks!
Luanne
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gln1227
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Re:question on tax liens - 2007/09/08 21:33Where can we find information about tax liens in our state? Thanks!
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Luanne
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Posts: 70
Re:question on tax liens - 2007/09/10 14:32Hello Tax Lien User!
You can find tax lien information per state at a couple different places. The easiest way is to choose the county where you will most likely be participating in tax lien and tax deed investing.
If it is a small county, choose a larger county- where there may be more information available. Check to see if there is a county website - with "tax sale" information.
They will be able to supply you with most of the tax lien and tax deed investing information you will need along your venture.
Thanks!
Luanne Admin
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phildcan
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Posts: 3
Re:question on tax liens - 2007/11/06 22:05So what happens if you pay the Tax lien and then an auction happens, and you do not want too buy the property or you just simply do not win?
What happens to that money you paid into the tax lien?
just for sake of conversation say i had a property i and paid 2,000 for the tax lien. The auction comes up and I don't win? Did I just lose 2,000 dollars?
Also, I know there is a time limit on that lien. So what happens if the original owner makes good on that lien after I have bought it?
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brianpul
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Re:question on tax liens - 2008/07/20 01:07So what happens if you pay the Tax lien and then an auction happens, and you do not want too buy the property or you just simply do not win?
What happens to that money you paid into the tax lien?
just for sake of conversation say i had a property i and paid 2,000 for the tax lien. The auction comes up and I don't win? Did I just lose 2,000 dollars?
Also, I know there is a time limit on that lien. So what happens if the original owner makes good on that lien after I have bought it? ===============================================
What happens is that if paid $2000 then it will never get to auction because the $2000 paid the taxes. Its up to you to foreclose on the property if and when the property owner's right of redemption period expires (varies from jurisdiction to jurisdiction)
To avoid foreclosure the property owner needs to pay the back taxes and late fees at the rate spelled out on the lien. The original owner must pay it before the right of redemption expires.
If you forclose you can convert the Lien into a tax deed and legally take the property, free and clear.
In short you either get the back axes back plus interest or the right to foreclose yourself free and clear
A warning and tip I found that you can sometimes avoid overpaying for tax liens by buying them over the counter after auction. You may not get the difference back between the difference of what you paid and the back taxes. The property owner is only liable for the back taxes and late fees. the reason why the prices jump is a lot of people are speculating on getting title to the property to resell for a significant profit.
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Acruza808
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Posts: 1
Re:question on tax liens - 2008/08/07 11:17Aloha,
This is what we were led to beleive also. I'm not saying they are wrong. However, if an owner is does not pay their property taxes. A lien is placed on their property. An investor like us can pay for it. Receive the receipt of payment/ Tax Lien Certificate and wait to remdeem the return of our investiment. Does the receipt you receive from the County Assessor the Tax Lien Certificate?
Mahalo,
Bill
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