10 Most Common Tax Lien Questions Answered

Here are the answers of the 10 frequently asked questions about tax liens:

1. Who are able to buy tax lien certificates?

Anyone who is interested and who has the cash to pay the auctioneer can purchase tax liens.

2. When I buy a tax lien certificate, am I evicting someone from his or her house?

No, you're not. You are only paying off the property owner's delinquent taxes; you are not foreclosing on them.

3. Will I get to own the property in the future?

It is possible, though it is scarce that the owner of the property will forfeit their real estate. In Arizona, for example, 99% of all the property owners pay off their taxes owed to the county. The county then in turn pays you the interest plus a specific high rate of return. The property owner redeems 95% all over the country, tax lien certificates sold.

4. Why won't people pay their property taxes?

There can be a lot of reasons, 3 of the most common ones are: 1 - the property owner died and no one paid his taxes though the heir can pay the tax later. 2 - the property owner run out of cash or just become unemployed. 3 - There are just people who would not want to part their money until the very last minute.

5. What would happen if the property owner dies?

In this case, the county will begin to forward tax notices to the last known address. The county will then advertise the tax sale. Usually, family members or the heirs pay the owner's taxes.

6. How many tax lien certificates can I buy?

There is actually no limit on how many tax liens you want to have. You can bid and buy as many as you think your money will allow.

7. To whom do I pay?

You will be paying to a government agency, as there will be no brokers or intermediaries to pay.

8. Who will be paying me my returns?

The owner of the property will be paying you when they pay off their owed taxes. The county, municipality, or the government agency that collected cash from you will contact you and will ask to have the tax lien certificate returned. They will then send you a government cheque upon receipt.

9. Do I need to contact the homeowners?

You do not need to contact them; you do business with the government agency.

10. When do I get paid?

The municipality or the county will notify you once the owner of the property pays up his owed taxes.

If your friends or family has questions regarding tax liens, you now know what to answer.

So, as you can see, subsequent taxes are an area of tax lien investing where you need to know the rules and learn to play the game. If you do it properly, then you can make some huge profits!
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About the Author

Dustin Hahn is the top tax liens and deed consultant today that conducts trainings and mentoring to investors who want to learn the secrets behind real estate tax sales investments. He is the owner of Tax Sales Secrets, the best tax liens and deed investment company. He is the author of Real Estates Best Kept Secret, an e-book which is available at http://www.taxsalessecrets.com