Investing in Tax Liens - An Introduction

If you are a home owner then you will surely know what property taxes are! Every county and local government in the United States charges property taxes which allows them to provide services to the local people. These services include everything from libraries, schools and local roads to police and fire departments. Without property taxes your local community would basically grind to a halt.

Every year you get a bill from the county outlining the taxes due from the previous year. If you don't pay that bill within a certain specified time frame there is a good chance that the county will put a lien on your property. A lien is a way of securing payment of an outstanding debt against the value in the property. You will also be charged additional interest and costs.

What happens if too many people pay their property taxes late? How does the county meets it's responsibilities such as paying the police department or road maintenance workers?

In order to meet their commitments and keep the local services running smoothly the county sells off the lien to investors at tax lien sales - Tax Lien Purchasing. The attraction for the investor is the potential to profit in the form of interest and/or penalty charges to the property owner when he is eventually in a position to settle his outstanding debt with the county.

In addition, if the owner is unable to settle the outstanding tax bill, then because the lien is secured against the property, the lien holder can move to foreclose. This can mean the lien holder can force a public sale of the property at auction and get paid the principal plus penalty and costs. In certain instances it can even mean that the lien holder ends up owning the property, free of all other liens. Investing in Tax Liens has the potential to bring extremely safe and secure returns.
 

There are several aspects to tax lien purchasing that investors should be aware of:

• How can I use the internet as a tool for researching liens and lien properties
• The differences between investing in tax liens and tax deeds
• How tax lien and tax deed requirements differ from state to state
• What are the inherent risks are how can I avoid them
• What is the process of bidding at tax sales
• What personal taxes will I be liable for as an investor

Tax Lien Purchasing doesn't seem to receive much publicity even though it is one of the safest investment strategies available. From my research, I heave learned that it is possible for investors to earn fixed returns of 10-25% or more through tax liens, and even in some instances purchase real estate for as little as 10-50 cents on the dollar.
The sky is the limit.If you are interested in learning more about Tax Deeds and Liens, you should click on the link below. It is a great place to get started if investing in real estate is what you are looking to do. Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ    
In these uncertain economic times I am looking to Buy Homes With Tax Liens [http://www.buyhomeswithtaxliens.info] as it seems to be a safe and secure way to make above average returns in the real estate investment market....

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