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Tax liens are said to be a good investment, but what is that makes them so profitable? To answer this question, you have to get a bit familiar with the basics of tax liens. In the following lines, I shall try to gather all the most important things a person must know before getting involved with such a thing as tax liens.
First of all, let's set things straight about the meaning of a lien, that is in terms of law: a lien is a way of securing the payment of a debt or performance of some other obligation, by means of granting a security interest over an item of property.
Investing in tax lien certificates can be a safe, lucrative, and accessible investment.
In this article I’ll give you what I recommend for investors want to invest in tax liens, but find that in their state they only sell tax deeds. It’s not a one-size fits all answer, it really depends on what your goals are and on your particular state.
Whether tax lien investing or tax deed investing is better for you depends on the state that you live in and what your goals are. If you are looking to pick up property under market value than you are better off with tax deeds than with tax liens. If you do your homework and purchase tax liens on good properties, the chances of foreclosure are slim.
A lien is a legal claim over property that must be paid before selling the property the lien is on. Understanding liens is important when you make get a car loan, a mortgage, or do not pay your taxes or mechanic’s bills. Consensual liens are not a problem for you or your credit rating in most cases. This is what happens when you take out a loan when purchasing a car or house. It is like the car or house is used as collateral for the loan.
Teaching you what tax liens are, how you can obtain them and include them in your real estate investment strategy, and how they have the potential to make you alot of money and are safer than most investments because of their win-win situation.
In Part I of this series I’ll discuss why I think this is a perfect time to get started in tax lien investing and in Part II of this series I’ll talk about why real estate auctions are a great opportunity for investors that have more cash available.
You have heard about investing in tax liens, but is it as easy as promoters make it sound. Here is what our experience was.
A judgment lien is a court ordered lien that is placed against the home or property when the homeowner simply fails to pay a debt. This doesn't seem like a big deal, but when the homeowner has a judgment lien against his or her home and wants to sell it, the judgment lien has to be paid in full before the home or property can be sold.
Recently one of my clients asked me what I thought of one of a book about tax lien investing. The book that he asked me about is one that I do recommend on my web site. The name of the book is Profit by Investing in Tax Liens, by Larry Loftis. The problem with books about investing in tax liens and tax deeds is that every state is very different and there is no book in print that I’m aware of that does justice to every state in the U.S. My goal in this article is to give you a short review of some of the books that I’m familiar with and point out the pros and cons of each one.
I am often asked why a lender wouldn't take back a deed in lieu of foreclosure when the homeowner offered his deed to the lender before he went into foreclosure. The lender will not consider a short sale or a deed in lieu of foreclosure until the homeowner is at least 90 days late on his mortgage or deed of trust payments in most states. In some states like Georgia, the foreclosure period is only 30 days so check what your state's foreclosure laws are before assuming anything or listening to anyone who is not an attorney.
There is often confusion about what is a short sale and a short pay with a lender in foreclosure. A short sale is where the lender is willing to discount the existing mortgage(s) and sell to an investor for a "cash" transaction or an end buyer who does financing. Rarely the lender will finance a buyer if he has excellent credit and qualifies for another loan, and the lender believes the buyer will be living in the property. The only reason this wouldn't happen is because of the lender's internal policies or additional existing liens on the property.
You must be wondering what this foreclosure thing is all about. The answer to this question is not a simple one, but once you come to terms with the procedure, you will see that it is not a too complicated thing.
Judgment liens can be placed against ones home or other assets when they refuse to pay credit card bills, home improvement bills, or just about any other type of bill. All a creditor needs to do is pursue payment and if the homeowner is not able or unwilling to pay, the creditor can go to court and a judge can place a lien against the home of the person that owes the debt.
Once you've completed the first three steps in the process of building your profitable tax lien portfolio, you can progress to step four to building your profitable tax lien portfolio, which is doing due diligence on the properties in the sale. This is the most important step in the process and whether you do this properly or not could mean the difference between being extremely profitable and losing money. Read this article to find out why.
With large numbers of Americans now looking for safer investments for their long term wealth building programs. Most want higher returns than they can get from putting their hard earned money into Bank CD's, many are seeking information about Tax Liens. Investing in Tax Lien/Deed certificates will enable you to realize safe, annualized returns all guaranteed by the United States Government.
Due diligence is the most important step in the process of investing in tax liens or tax deeds. Whether you do this correctly or not could mean the difference between being extremely profitable or loosing your investment. Learn more...
Here are some mistakes that can lower your rate of return in your tax lien or tax deed portfolio. These are mistakes that I, or one of my clients, or another investor that I know, has made in the process of investing of tax liens or tax deeds. I’m sharing them with you so that you do not make the same mistakes that we did when we were just beginning to invest in tax lien certificates and/or tax deeds. Hopefully you can learn from our mistakes.
A lien is defined as the right to hold or sell property that is owned by an individual who owes debt. The property is often sold to make payment on the debt or the property is held as security until the debt is paid off. There are many financial institutions that use a lien to obtain the amount of money owned to them. In addition to financial institutions, the federal government also uses tax liens to obtain money until their debt is paid off in full.
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