Guide to Finance

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Tax Lien On Property

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A lien on a property is the most usual type of lien but not the only type. For example when you take a loan from a bank to finance a car, the bank can put a lien on the car to ?ensure? repayment until all outstanding payment is made.



The same applies to funding a house through a bank. The lien gives the bank the right to repossess the house if you are unable to make the payment.

A tax lien is imposed by law on property to assure the payment of taxes. They may be imposed on real or personal property for delinquent taxes and/or the failure to pay any sort of taxes on the property including income taxes.

A tax lien on properties ?runs? with the property owner. It means that the new property owner is responsible for paying the taxes even though the tax was incurred by a previous owner.

The rulings on tax lien varies from states to states but the owner of the property may be personally liable for the remittance of all outstanding taxes. This can be made by the property owner or indirectly by the mortgage holder. Plenty of notices are given to make sure that both the owner and the mortgage holder are appraised of the situation.

If a tax lien on a personal property is not settled within a designated time, the asset may be confiscated and sold at a foreclosure sale. This normally happens after several notices are given and attempts are made to establish contact and/or payment. If a property is sold by the owner prior to tax foreclosure, the tax lien is most often paid as part of closing costs from the sale proceeds.

One of two methods may be used in dealing with the result of foreclosure on a piece of real property. The property may be confiscated and sold in what is called a tax deed sale. The other method can differ from state to state but the tax lien may be offered to investors in the form of what is called a tax lien certificate. This accompanies the right for the investor, after a specific period of time has passed, to begin foreclosure actions. This is known as a tax lien sale.

It goes without saying that it is desirable to stay current on the payment of taxes on property as this saves time and frustration in dealing with foreclosure actions. It makes sense to ensure that the property that you plan to purchase is free of a tax lien.
Tax Lien On Property
This is the Best Housing Economy in History...for Tax Lien Inventors!

There has never been a better time in history for tax lien

investing, ask anybody that's doing it!

This economy has made getting a from a house from your Tax lien

investment much easier, folks just aren't paying their taxes and

the banks are SO heavy in foreclosure inventory that it financially

behooves them to write off the note and let the property go!

During a good economy, you can expect to get about a 90% redemption

rate from the home owner. This means 9 out of 10 people pay their

taxes before you, the tax lien holder, gains ownership of the house.

In this instance you get your investment back plus interest

back, pretty wonderful worst case scenario, right?

Now fast forward to 2008!

The housing crunch has dropped the redemption rate in many markets

to as low as 50%.

This is any amazing turn for Tax Lien investors, we now have a VERY

good chance of getting half of the houses we get Tax Liens for.

WOW!!!

Back before the current housing crash, I would shop for the highest

interest rate assuming that I would only get one to three houses

for every ten liens I bought.

Huge governmentally secured interest rates and a few house seemed

like the smartest thing I could do with my money...it grew fast!

But now...oh my gosh...houses are coming to me left and right!

Not only am I still getting my huge interest rates, but now a ton

of my liens are "magically" becoming houses.

Just one quick example, I bought 6 Tax Liens in the last auction

in Indiana (I love Indiana because they have a 4 month...YES 4

MONTH redemption period)it's looking good for me to get at least

half of them.

That means 50% of my Tax Liens will become houses that I own free

and clear for less than $2000 each.

No matter how bad the market is I bet I can find a buyer for a

house that I can make a profit on by selling it for $1 more than

$2000!

Best of all, if my buyer gives me a $2000 down payment on a house

that I bought for $2000, I'm in a pure profit situation!!!

Your Best Bet-Rent to Own

Creative financing is never more welcome than at a time when the

banks aren't loaning money.

I bet there are millions of people in America right now that would

kill to rent to own a house with me holding the note. No bank

involvement!

This scenario is one of the great reasons for tax lien investing,

rent to own your way to wealth! If the Tenant pays off the note,

good for them, they get a house for a fantastic deal.

If they don't pay their note down month in and month out, you

convict them and get your house right back on the market. Again, as

long as you got enough down payment from the tenant to cover your

investment in the house-you are in a total profit situation.

This is the secret to making great money from the homes your get

from your tax lien investments, especially in a "down" economy.

There are times in economic history when loans are much harder to

get than other times; smarts investor take advantage of these times

and can help people out of their troubles as a moral benefit.

So there you go...a very long winded way of saying your crazy not

to get http://tinyurl.com/79q6a6 and get

to work investing today

Join Now!

Thanks,

scott
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Government Tax Lien Certificates
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Notice Of Federal Tax Lien
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•Buying A Tax Lien, by Carlos Scarpero
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•County Tax Lien Certificates, by Brad Olstad
•Federal Tax Lien Release, by Ken Charnley
About Author
Both Kenfong & Sml451 are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Kenfong has sinced written about articles on various topics from Video, Home Improvement and Tax Liens. Ken Fong - More on
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