Profit From Tax Liens

Real Estate Tax Liens are extremely safe and powerful investments. At a time of historically low interest rates, investing in this little known mechanism can help you obtain maximum financial yield with a minimum of risk.

* Real Estate Tax Liens are placed against the title of actual property by an entity of the government for unpaid or delinquent taxes.
* Federal liens are placed against the title to real estate by the IRS for unpaid income taxes.
* State tax liens are placed against the title to real estate by a state income taxing authority for unpaid state income taxes.
* Local tax liens are placed against the title to actual real estate by the county or city property taxing department for unpaid or delinquent property taxes.

Whatever the source, there is a great opportunity to profit from tax liens. Unless the taxpayer pays off his debt he cannot sell the property and give clear title. This is the key to how this investment works.

After a specified period of time, if the debt is not settled the local taxing authority will foreclose on the property. The local taxing authority will then sell the property via a bidding process at a tax lien sale.

The winning bidder receives either the title to the property or a certificate from the local taxing authority. The taxpayer does not automatically lose the property at this point. They have a set time period to pay the back taxes, penalties and interest in which case they get to redeem the property. As the certificate holder, you are entitled to receive all of these payments.

As a holder of one of these certificates you have two ways to profit form tax liens:

* The first is the interest and/or penalties applied to the lien. In Florida for example the interest you receive maybe as high as 18 percent. The interest rate on debt the is set by the local taxing authority and varies from state to state. The interest must be paid by the tax payer as well as the lien amount itself for the debt to be considered paid off. In some states and for some certificates the interest rate can be quite considerable.

* The second way to make money from tax liens for sale is in the event the tax payer does not redeem or settle the outstanding debt. Then as its holder you can convert it into a tax deed for title to the property.

So you can see that there are too very different and distinct ways to Profit From Tax Liens.
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 
If you are looking to give a timely boost to your investment portfolio in these uncertain times then I would recommend doing some further research on Tax Liens For Sale [http://www.buyhomeswithtaxliens.info].

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