Tax Lien Investing - Discover the Benefits of a Tax Lien Certificate

Depending on the state you live in, counties have a variety of ways of dealing with homeowners who have not paid their real estate taxes. It usually involves putting a lien on the property, which gives the county the right to take action in order to get the taxes owed to them. This is where tax liens investing comes in. This differs from the lien a creditor puts on the property to make sure their debt is paid first before any profits are received form the sale of the house. When a tax lien is placed on the property that goes unpaid, they do not wait for the sale of the property to assure the obligation is paid, the sell the liens!

A tax lien is simply the financial obligation to pay taxes. Each year a tax lien is put on the property when the taxes are due, and when the payment comes in, the lien is removed. When the taxes have not been paid for an extended period, the local county will allow investors to pay taxes for the homeowner. There are several different approaches used in different states for this; many states will issue tax lien certificates.

What this means for tax liens investing, is once a year, the county puts up these tax certificates for sale, usually at an auction. The winner pays the county the back taxes owed and receives a tax lien certificate as a legal document showing that they purchased the lien. The most common outcome is that eventually the homeowner will pay the back taxes with interest, which is dictated by state law at 16%, 18& and some states may go up to 50% interest. Once the bill is paid, you return the certificate that is now null and void, to the county and you get your original investment back, plus interest. Normally these certificates can be held for two or three years, so at those interest rates, you get a good return, better than most investment opportunities!

If the homeowner does not pay the taxes after the designated time, and foreclosure proceedings start, it is important to know that real estate taxes are paid before anything else, so you will still get a return on your investment. There are even some scenarios where the certificate holder ends up owning the house themselves. Which opens up even more doors for investment.

Tax liens certificates are an investment choice without having to get financing, no stock market concerns, and has the value of the real estate backing it up. It is one of the simpler ways to get involved in tax lien investing, with minimal risk.
 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 

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