2006-11-28 09:45:06 · 6 answers · asked by adam f 2 in Business & Finance ➔ Renting & Real Estate
Doesn't a lien imply that money is owed?
2006-11-28 09:47:00 · answer #1 · answered by its_me_cheeky_dee 2 · 0⤊ 0⤋
A tax lien against any Real Estate is quite simple. The owner owes money to a tax authority and cannot sell the property before the lien has been satisfied. The only way money may be made on such property would depend on the amount of the lien to be satisfied, fair market value, location and condition.
In some cases, the property is seized, put up for sale at auction and based on the factors indicated, the purchaser can win or lose. In a bullish market, it can work and in a slow and depressed market, it won't work for a quick turn around.
2006-11-28 17:56:16 · answer #2 · answered by Notorious 4 · 1⤊ 0⤋
You can make money on interest and penalties that delinquent tax payers pay for their lien. The process is rather simple, the county needs money because someone didn't pay taxes. So they borrow money from an investor and securing that small loan with a lien against real estate.
When the property owner pays, they have to pay interest and penalties. If they don't pay, they lose the property and in most jurisdictions the investor gets the property.
For more information about tax liens, go buy the book listed below. There are some risks that you need to be aware of.
2006-12-01 13:39:15 · answer #3 · answered by John Rosa 3 · 0⤊ 0⤋
There are those that lien a property by paying the back taxes on the property which then gives them the right to put a lien on the home and foreclose if the owner can't pay. While it is a financial opportunity it is a vultures mentality.
Here is some additional info. Hope this helps.
2006-11-28 19:08:38 · answer #4 · answered by Anonymous · 0⤊ 0⤋
a tax lien is a past due tax bill (generally a real estate tax) that remains unpaid. The county sells these at a discount at auction. You can buy them and earn a rate of interest that is secured by the property. If you acquire 2 years on the same property you can sue to forclose on the property. Either the lender will pay you off or if there is no lender you become the legal owner of the property.
2006-11-28 17:54:35 · answer #5 · answered by Jim7368 3 · 0⤊ 0⤋
More than likely a tax lien is a government lien. It is when someone don't pay taxes on property. You cannot make money from that.
2006-11-28 22:15:41 · answer #6 · answered by Stephanie 3 · 0⤊ 0⤋