Government Auctions Tax Lien Sales and How to Profit From Them
The government forecloses homes often as a result of people defaulting on their tax payments. Failure to pay taxes on property, whether personal or commercial, gives the government the right to foreclose the property. While this may sound horrible for the owners, there can be some positives that can result from it.
Sometimes tax lien sales are held by the government for the local public to bid on the tax sales in lieu of the property. This means that the public will bid on the chance to pay the tax debt for the property owner so that the owners may keep the property. Of course, nothing comes for free.
However, the caveat for the property owner is that if they don't pay the loan as agreed upon, you, as the lien certificate owner may foreclose the property and take title of it. Everyone wins, so long as you are payed back the full amount of the tax debt plus the healthy interest owned. This way, you obtain a good interest rate on a very low risk investment, while saving someone from losing their property and/or home.
Even more, the lender can sell the property after obtaining the title. Imagine how much money they can profit from doing that! It's always best for the owner to keep up with all mortgage and tax payments, but sometimes financial problems can prevent that. Since we're still going through an economic collapse, the odds are more often than not AGAINST the struggling homeowner.
A tax deed sales is not exactly the same as a tax lien sale. The only thing the two have in common are that they're sold at government auctions. A tax deed sale means that the government is selling the actual home and title, and the highest bidder will win the rights to the home immediately. The current homeowners have no choice but to move out. Depending on the local and state laws the auction winner may be responsible to cover all additional liens against the property. This information is public information so it is vital to know of any outstanding liens as you wouldn't want to encounter any surprise expenses here.
These government auction tax sale opportunities may be the best investments one can make because you actually have a house and/or property that either you own or have as collateral should your lien interest payments not be made. Just reflect on the amount of money you can make by purchasing a tax lien and charging high interest rates, or paying the defaulted taxes, receiving the house and either renting it for a monthly income or reselling it for a healthy profit. - 23218
Sometimes tax lien sales are held by the government for the local public to bid on the tax sales in lieu of the property. This means that the public will bid on the chance to pay the tax debt for the property owner so that the owners may keep the property. Of course, nothing comes for free.
However, the caveat for the property owner is that if they don't pay the loan as agreed upon, you, as the lien certificate owner may foreclose the property and take title of it. Everyone wins, so long as you are payed back the full amount of the tax debt plus the healthy interest owned. This way, you obtain a good interest rate on a very low risk investment, while saving someone from losing their property and/or home.
Even more, the lender can sell the property after obtaining the title. Imagine how much money they can profit from doing that! It's always best for the owner to keep up with all mortgage and tax payments, but sometimes financial problems can prevent that. Since we're still going through an economic collapse, the odds are more often than not AGAINST the struggling homeowner.
A tax deed sales is not exactly the same as a tax lien sale. The only thing the two have in common are that they're sold at government auctions. A tax deed sale means that the government is selling the actual home and title, and the highest bidder will win the rights to the home immediately. The current homeowners have no choice but to move out. Depending on the local and state laws the auction winner may be responsible to cover all additional liens against the property. This information is public information so it is vital to know of any outstanding liens as you wouldn't want to encounter any surprise expenses here.
These government auction tax sale opportunities may be the best investments one can make because you actually have a house and/or property that either you own or have as collateral should your lien interest payments not be made. Just reflect on the amount of money you can make by purchasing a tax lien and charging high interest rates, or paying the defaulted taxes, receiving the house and either renting it for a monthly income or reselling it for a healthy profit. - 23218
About the Author:
To find sites with the best property tax sale opportunities and receive a free Government Tax Liens Report visit property tax sales or to visit the home page click government auctions.
posted by X - Men @ 2:03 PM
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