Liens and Deeds – Long-Term Growth vs. Quick Profit When we compare the two real estate investing methods to tax sales, we immediately see that purchasing liens is much like buying a property to keep long-term; getting a property to flip is much like buying a tax deed. Let’s say the property owner pays the government the outstanding taxes due before the certificate reaches maturity (and before the redemption period is up). And the chance that you get your investment bank plus interest is higher since the bank is REALLY motivated to sell the house and MUST pay off the tax lien before doing so. 1-339.64) a bidder may '. 27-45-3). Bid Procedure: Premium bid / highest bid. I had never considered investing in someone else’s lack of ability to pay their taxes. (Sec. Investors are sometimes shocked when they are sued by a previous owner contesting a sale. (Sec. This seems like the type of thing where you could lose your shirt if you don’t know what you’re doing, or make a killing if you understand how the market works. How to Deduct Mileage on Your Personal Car. Sheriff's sale: happens about 45-90 days from Praecipe, depending on the county. Even if you have held the lien for years and spent thousands of dollars on legal fees.

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Generally the sales happen between July and November every year. 140.290). I researched tax lien investing in the middle of last year when I was also looking at buying a foreclosed property… risk is much larger than reward right now, is the problem, with people going bankrupt and the possible problems with the land title system created by the banks’ robo-signing and MERS. (Sec. I am not sure if it works that way, but it does seem to have less risk involved (like you said, the bank would probably have done a lot of the legwork at that point). I would second Gene C. and emphasize that the experience of buying tax liens varies WIDELY depending not only on the state, but on the local judges as well. From my own research, banks don’t seem to be any more eager to pay property taxes than the people they’re ousting. Florida is a Tax Deed and a Tax Lien state. Contact: The County Treasurer. Of course there are a few hybrid states, such as Texas and Georgia that sell the property at a tax deed sale, yet allow the owner a redemption period to pay off the lien and reclaim the property. 8) Are you interested in fixing up and selling foreclosures? The following table lists "tax lien states" and the current standard rate of return for tax liens in those states. Law: Mississippi Code, Title 27, Chapter 41, "Ad Valorem Taxes -- Collection", Chapter 45, "Ad Valorem Taxes -- Redemption of Land Sold for Taxes," and Chapter 47, "Ad Valorem Taxes -- Assignment of Tax Liens.". Procedures for Investing in Tax Lien States Interesting idea. Tax Deed Vs. Tax Lien States. In some counties you will see a 20% interest and a one year redemption, and other will be the way you see above with a 15% interest and 60 day redemption.

Contact: Tax collector or treasurer (Sec. (Sec. Bid Procedure: Premium bid / highest bid. then they’ve already done all the hard work of quieting the title from liens that may have affected the original homeowner. I have one right now that is earning 3%…Food for thought. Contact: County Treasurer. but it did not pan out. There are 46 County Delinquent Tax Collectors (often referred to as simply the Tax Collector) or, if there is no such office, refer to the County Treasurer.