Government Auctions For Tax Lien and Tax Deed Properties - Buy Properties for $2000
The government forecloses homes often as a result of people defaulting on their tax payments. Failure to pay taxes on property, whether personal or commercial, gives the government the right to foreclose the property. While this may sound horrible for the owners, there can be some positives that can result from it.
A public property tax sale, also known as 'property tax liens', are auctions organized by local government councils in an effort to dispose of tax debt. What occurs is that the public bids on the debt owed by the property owner. For argument sake say you are the winning bidder. That means you are paying off the tax debt on behalf of the property owner by buying a tax lien certificate which establishes you as the new lender to the property owner. The property owner has to pay you back with interest before the expiration of the redemption period as predefined by the government. This redemption period can be any time between 6 months to 4 years.
The homeowner must then pay the winner back all their money plus interest by a specific date. The date will be determined and agreed upon by both parties. The lender is allowed to raise the interest anytime the homeowner fails to make a payment. If the homeowner continues to fail on the payments, the winning bidder will then be permitted to take over the home and the title. Either by profiting on the interest or by receiving the title to the home, the lender wins both ways.
Obviously, a savvy business person would like the homeowner to be unable to pay back the loan or default on the loan terms, so that they can receive title on the property themselves. It's in the homeowner's best interest to pay their dues on the home and home tax loan, but if their financial situation was bad in the first place, there's is a chance it may not improve anytime soon in this economy. In many cases, all odds are against the homeowner.
A tax deed sales is not exactly the same as a tax lien sale. The only thing the two have in common are that they're sold at government auctions. A tax deed sale means that the government is selling the actual home and title, and the highest bidder will win the rights to the home immediately. The current homeowners have no choice but to move out. Depending on the local and state laws the auction winner may be responsible to cover all additional liens against the property. This information is public information so it is vital to know of any outstanding liens as you wouldn't want to encounter any surprise expenses here.
Obviously, there are great opportunities for profit at government auctions, whether by earning money through tax lien sales or tax deed sales. Those who are business savvy can earn all kinds of money by either charging the homeowners high interest, or simply obtaining the home and reselling it for a nice profit. - 23200
A public property tax sale, also known as 'property tax liens', are auctions organized by local government councils in an effort to dispose of tax debt. What occurs is that the public bids on the debt owed by the property owner. For argument sake say you are the winning bidder. That means you are paying off the tax debt on behalf of the property owner by buying a tax lien certificate which establishes you as the new lender to the property owner. The property owner has to pay you back with interest before the expiration of the redemption period as predefined by the government. This redemption period can be any time between 6 months to 4 years.
The homeowner must then pay the winner back all their money plus interest by a specific date. The date will be determined and agreed upon by both parties. The lender is allowed to raise the interest anytime the homeowner fails to make a payment. If the homeowner continues to fail on the payments, the winning bidder will then be permitted to take over the home and the title. Either by profiting on the interest or by receiving the title to the home, the lender wins both ways.
Obviously, a savvy business person would like the homeowner to be unable to pay back the loan or default on the loan terms, so that they can receive title on the property themselves. It's in the homeowner's best interest to pay their dues on the home and home tax loan, but if their financial situation was bad in the first place, there's is a chance it may not improve anytime soon in this economy. In many cases, all odds are against the homeowner.
A tax deed sales is not exactly the same as a tax lien sale. The only thing the two have in common are that they're sold at government auctions. A tax deed sale means that the government is selling the actual home and title, and the highest bidder will win the rights to the home immediately. The current homeowners have no choice but to move out. Depending on the local and state laws the auction winner may be responsible to cover all additional liens against the property. This information is public information so it is vital to know of any outstanding liens as you wouldn't want to encounter any surprise expenses here.
Obviously, there are great opportunities for profit at government auctions, whether by earning money through tax lien sales or tax deed sales. Those who are business savvy can earn all kinds of money by either charging the homeowners high interest, or simply obtaining the home and reselling it for a nice profit. - 23200
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To find sites with the top property tax sale opportunities and receive a free Government Tax Sale Properties Report visit property tax sales or to visit the home page click government auctions.
posted by X - Men @ 7:33 AM
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