i would like to buy some tax liens not as an investment on the actual lien, rather to take ownership of the home do some renovations and sell it, or keep it as a rental unit? does anybody know what the procedure is? please be as specific as possible.
as well how long does it take until all the legal work is done?
2007-10-11 15:26:02 · 3 answers · asked by lizard 1 in Business & Finance ➔ Renting & Real Estate
If you don't know how to foreclose, you have no business getting into this. Take some time and do a LOT of research before you consider this.
2007-10-11 15:29:37 · answer #1 · answered by Terri J 7 · 0⤊ 0⤋
Until you can take possession of the property it takes quiet some time. If somebody else bought tax liens on the property for previous year(s) or if you are the first one to buy a lien does not really matter and does not really shorten the time.
If you buy the tax lien you are allowed to add the agreed on interesst on top of the lien (and so can other lien holders on the same property). If you redeem the property you have to pay off the other lien holders plus the interesst they agreed on when they bought their liens.
The property will go to a public auction and everybody (lien holder or not) can bid on the property. The highest bidder will get the property and has to pay off all lien holders with their interest. So even if you are a lien holder you are not garanteed that you will get the property after all. Unless you are the highest bidder or nobody else is bidding.
It might be handled differently in different counties, you might want to talk to your county property appraiser or assessor, they will be able to explain the procedure to you and most of them are more than willing and helpfull.
Time wise that can be quiet a while. And the current property owner has the right to buy the liens plus interest back until the last day of the process.
2007-10-11 15:42:57 · answer #2 · answered by Monika Wilson 4 · 0⤊ 0⤋
As far as I know you cannot buy a tax lien and then assume the propery. only a few states allow a tax line involving a deed. If you think your gona spend a few dollars and get a property your nuts. The loan on the property must get paid any other liens must get paid. If the house does go to auction and investment wise it will make money, the banks will pick it up. your better off looking for foreclosers. you will not get a house on a tax lien period. Read "profit by investing in tax liens" by larry Loftis you'll see the returns are pretty small even if you earn 125 % on the investment
2007-10-11 20:26:05 · answer #3 · answered by delacyelectric 2 · 0⤊ 0⤋