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.
The Pros and Cons of Tax Lien Investing
Investing in tax lien is one of the best choices any American citizen can take nowadays. Investors from across the country praise and criticize this lucrative investment because of its high returns.
Realtor Help You Get Tax Lien Home
Purchasing a foreclosed home in today’s real estate market is a great choice to make. This is especially true if you’re looking for a property at a bargain price. However, before making any wrong decisions, be sure to have an experienced realtor by your side.
Revenue and Source of Income from Tax Lien Certificates
In general, taxes levied on the public are a very crucial source of government revenue. Without the needed funds, the county cannot fund important services such as the fire departments, police, hospitals, schools, and even parks. This is why tax lien certificates are sold to the highest bidders in order to obtain the funds.
Which is the better investment: tax lien certificate or tax deed sale?
It has been said that investing in stock and shares, money market and jewelries, specially gold and diamond are good investment as their values continue to rise. But one undeniable fact is that the real estate business seems to outpace all present investment portfolios. One obvious reason is the ever growing global population that people tend to focus more and more on better living conditions over and above anything this world can offer.
