Invest in Tax Lien Certificate

A tax lien is put upon a property as a security against the non payment of taxes, either personal or property taxes. These liens are paid either by the owner of the property or the mortgage company. The mortgage company is likely to use an escrow to recoup the payments from the property owners. If the property changes hands without the lien being paid off, the new owners will then become responsible for its payment. This is due to the nature of the lien. It will 'run with the land' which means that the debt will forever be against the property rather than the owner of the property. If the lien on a property is unpaid, it is possible to invest in a tax lien certificate which will give you the right to foreclose on the property. This will then become yours.

Tax lien certificates come up for sale on properties via the county or municipality that the taxes are owed to. The money paid for the lien certificate will go to them in payment of the outstanding tax and the property owner must then repay you. If you invest in tax lien certificates you will receive a state mandated income from the property owner, which, if they want the lien to be removed, must be paid. This will give you a regular income as long as the lien is outstanding.

If you invest in a tax lien certificate and the delinquent tax is not repaid by the owner of the property which the lien is against, after a certain length of time you will have the right to foreclose on the property and the title will become yours.

This all seems very straightforward and it would seem that you cannot lose if you were to invest in tax lien certificates. However, this is not always the case and investing in this manner can sometimes be a risky business. Although, as the holder of the tax lien certificate you will usually have first rights as this lien will be the first one held on the property, there are cases when others have more rights of recovery than yourself. If the owner of the property owes money to the IRS or other creditors and is declared bankrupt, you may find that you are no longer holding the first rights on your lien and you may end up losing out. For this reason, a detailed search is absolutely critical if you want security and peace of mind. Also you must research the property itself. A rash decision to buy a tax lien certificate on a property could leave you with a very poor investment if you discover that the property is in very poor condition or has a problem with the likes of flooding etc.

There are many ways of investing and some of these are more risky than others. If you invest in a tax lien certificate it is possible to receive a high return for your initial outlay. This, however, is dependent upon a number of factors and you must be prepared to do some very careful homework regarding both the property and the financial situation of the owner.
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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