Tax Lien Certificates for Sale – Investing in Home Liens

If you are looking into real estate investing – whether a beginner or seasoned investor wanting to add variety in your investment portfolio, then home liens is a profitable option you should consider. Tax lien certificates for sale are among the surest, safest ways that you can earn penny-to-dollar. Read on to find out more and make the most of your time and money.

What is Tax Certificate Sales?

The United States is a chock-full of valuable assets in the form of real estate properties – both commercial and residential. And among the costs of ownership is paying (religiously) property taxes. A default leads to the issuance of a lien certificate by the state county government and to continually fund civil services, these lien certificates are sold through auctions regularly conducted by county authorities.

Where to Find Lien Certificates?

There are more than 3,000 counties all over America that can provide you a list of tax lien certificates for sale. With the advent of the Internet, anyone can now participate in online auctions and own a certificate on properties that are states away. It is crucial, however, to take note that each county does things differently. So to implement a working, profitable strategy, do your due diligence. Crucial information to know before attending an auction includes: 
• Pre-application requirements 
• Terms and conditions 
• Mode of payment 
• Date and time of the next auction 
• List of tax liens/properties to be auctioned

What Happens to Certificate Holders?

In order for the lien to be removed, the owner of the property must commission the entire amount of unpaid taxes inclusive of interest and applicable penalties. If this is met, then the county government sends out a check to the tax lien holder that amounts to the price of the certificate plus accrued interest.

Fact is, around 95% of citizens cover the delinquent tax within 24 months. However, there are some who fail to redeem their property’s tax lien certificate and losing ownership of their real estate in the process. This makes the certificate holder the new owner of the property in just the cost of back taxes.

The process makes the investment a win-win investment for lien certificate buyers. It’s either they get their money back plus interest, or they end upowning a property for a fraction of the cost. And because you are directly working the government, not brokers, you have the assurance of safety.

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