Planning to purchase tax lien certificates from distressed property owners? Here are some tips to guide you:
Tax Lien Negotiation Points
A property owner facing tax lien dilemma can be quite agitated to approach for a deal. However, if you say the right words and let him know that you’re just there to help with the tax debt, then he might change his mind. If he does so, here are some errands to do:
Save Your Property and Assets from Tax Lien
It is always a good habit to file your taxes in order to avoid a tax lien being used against your property. But if you fail to pay, regardless of how ugly or hopeless the situation may be, there is a chance to fix it, and sooner the better.
Types of Tax Lien Properties Investment
Did you know that there are three types of foreclosure property investing? It is tax lien, tax deed, and redeemable deeds. These three are different to each other which affects on how investors make their decisions.
Tax Lien Holder Claims to Property
What is a tax lien? It is an encumbrance on a property to secure a tax debt by the owner, who owes it to a lender or the government. The lien holder can be an individual, bank, credit union, finance company, or other financial institution, which the property owner has signed an agreement to lend money using a particular asset.
Take Time in Tax Lien Auctions and Do Not Rush
Take your time whenever you deal with tax lien auctions. Remember that there are always good transactions out there but too often other investors would let the attractive investment cloud their judgment, and screw things up. So, prepare yourself and do not rush.
Purchasing Tax Lien Home from Family or Friend
Sure you love them so much. You’ve probably know them for a long time but purchasing a home still needs to be done by the book. Maybe this would be the largest financial investment you would make in your whole life. That is saving them from a tax lien dilemma.
Maryland Tax Lien Auction System
If you are in Maryland, the bidding system for tax lien auctions is different from the other states. In Maryland, the counties have premium bidding. However, there is no need to pay for the whole premium at the tax sale. You only pay for the amount of the tax lien certificate as well as a portion of the premium, which is called high bid premium.
Random Selection of Winners in Tax Lien Auctions
Tax lien auctions are held every year in different states across the U.S. States that choose the random selection method of selling tax delinquent properties, conduct either by having a computer choose the winning investor. A lottery is also another way of selecting the investor.
Tax Lien Investing Via Credit Card
So many people are interested in tax lien investing but have big problem, they do not have any cash available to invest. If you are one of those investors who are held back from succeeding in this lucrative investment, then worry no more. Use your credit card to invest in tax liens.
