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Tax Liens

Tax Liens


Investing in Tax Liens.

Investing in Tax Certificates & Deeds can be lucrative but forget the hype!

It is not get rich overnight! You can not get something for nothing!

In a sense, you are investing in real estate with a guarantee!  You will find that the majority will be redeemed!

To take the property when it comes to tax certificates it can be a daunting process at times!

You must always do your due diligence when making any investment.

Every State has Laws, regulations, and statutes regarding Tax Certificates & Deeds Investing and they change regularly so do check your county and state Laws, regulations, and statutes before

Questions you should ask the Tax Authority

1. Who handles tax liens for the county (Treasurer, Sheriff, Tax
2. Does the county use tax lien certificates or tax deeds?
3. How often are tax sales held?
4. When is the next auction?
5. Where will the tax sale be held? (get the street address, building name, floor and room number)
6. Where is public notice of tax liens posted (does the county
publish a list, will it be published in a newspaper)?
7. Does the auction take place in one day or over several days?
8. What method of payment is required?
9. Is it possible to buy tax liens through the mail?
10. If all the liens are not sold at auction, do you sell them daily
over the counter?
11. How does the foreclosure proceed if the property owner fails to
redeem the property?
a. Who pays for the foreclosure?
b. When can the foreclosure procedure begin?
c. Does the foreclosure go through a public auction?
d. Do all lien holders need to be notified before
e. What kind of deed is given in foreclosure?
f. Can this type of deed eligible for title insurance?
g. Are all other liens removed from auction and sale?
12. What interest rate or penalty must be paid on a tax lien (your income)?
13. Can a person be put on a mailing list to get future notices of tax liens?
14. Are there tax liens available for purchase today?
15. At the tax lien sale, what are you bidding on? (In some states, you bid the interest rates down, in others you bid the purchase price up, in a few you bid on the percentage of the property that the lien applies to).
16. Is there a redemption period and how long is it?

Redemption - A lien redeems (pays off) during its redemption period and you make back your principal, fees, and a percentage return on your principal investment. Redemption periods vary state to state and range from a period of one to four years.

Foreclosure - taking possession of the underlying property after the property owner has failed to redeem within the redemption period. Foreclosure laws vary from state to state and difficulty of foreclosure is just as varied.

Tax Deeds issued by the Clerk of the Court - When redemption has passed & all subsequent or prior taxes are satisfied, if need be, the right to file deed becomes realized. Some states the deed is immediately issued upon filing. Other states the deed is then placed
on the tax sale roll for the deed to be auctioned at a tax deed sale.

The actual sale may not occur for that particular property for months, but most states you will earn the maximum interest on total taxes owed during that time period.

You may still be outbid at the tax deed sale, the sales are held as an open sale. They will then in turn pay everything that is owed to you.

Most Title insurance companies will not insure a tax deed. If you want to sell the property and offer title insurance, you must file a Quiet Title Suit. The Quiet Title process is not complicated.

NACo collects information on counties, such as county officials, courthouse addresses, county seats, cities in a county. To see a listing of the counties for a state, select a State from the map or from the pull down menu. You are then able to get more detailed information on counties.


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