What Everybody Ought to Know about Judicial Tax Lien Foreclosure

What Everybody Ought to Know about Judicial Tax Lien Foreclosure

STOP!  If you’ve found this page because you’re looking for a TAX LIEN ATTORNEY to solve an IRS issue or Federal or State Tax problem, then click here for a directory of local attorneys in your state that can help you SOLVE your IRS/Government Lien Issue.

Find a qualified local TAX LIEN ATTORNEY in your state to help you NOW!

If you’re looking to hire a tax lien attorney to help you with your investment (tax lien certificate, tax deed, quiet title), then keep reading below!

Several states especially in the mid-Atlantic and Northeast require a full judicial foreclosure in order for you to take deed to a property.  The largest of these states include New Jersey, Maryland and DC.

While the thought of hiring a tax lien attorney, going to court and paying the costs associated with the tax foreclosure can be daunting to new investors, it actually is a more definitive (more…)

Why Invest in Tax Lien Certificates?

Why Invest in Tax Lien Certificates?

As I always do at the end-of-the-year, I spend time reflecting on past events and more importantly set priorities and goals for the upcoming year.  I have a lot to be grateful for.  This tax lien website has started to gain a good following of devoted readers both online and thru my newsletter. I’m also grateful that I’ve been able to directly keep a number of readers out of trouble—away from bad investments or pricey scams. 

One underlying theme I do get from my reader’s emails and comments is the question about why they should invest in tax lien certificates over other investments?  We could place our hard-earned cash into stocks, mutual funds, bonds, annuities, or even other real estate investments.  But, why tax liens over these other alternatives?

I have five reasons for you.  I’ll open up the comments section on this post if you have other reasons why you think we should (or should not) invest in tax liens as an alternative to these other asset classes.

  1. High Interest Rates.  The reason all of us first raised an eyebrow about investing in tax liens were seeing the advertised statutory rates of 16%, 18% or even 24% on your investment. With banks paying 0% and stock market dividends averaging less than 3%, a yield even in the high single digits is appealing. 
  2. Safety of Investment.  I have to be careful here, as I don’t want to make it seem like there is no risk involved in tax lien certificates.  People do lose money.  It’s imperative that you understand what you’re getting into before buying your first lien.  That’s why I created my website.  If you do your homework, follow the advice found here, and buy high quality liens, then this investment can be extremely safe with little or no risk of loss.
  3. It’s in Your Neighborhood.  Like most real estate investments, you can see the properties first-hand before you buy the tax lien on it.  It could be a house down the road or an office building a short drive away.  Even if it’s a bit further than a day’s drive, the research is easy and you can rely on brokers and online resources to help you out.
  4. Most Tax Lien Certificates Redeem. Look, tax liens are not the best way to gain ownership of properties.  The majority—I mean like 99% of the good properties—will payoff before you even get close to getting deed to the property.  This is a good thing.  It means you earned your interest and you get your principal back.  Nothing wrong with that.
  5. It’s Enjoyable. The reason I get so excited about tax liens is that it’s fun to invest in.  We can see the properties we’re going to bid on.  We get to see our competition (if the auction is not online) and know that there are others just like you and I bidding on these liens. And, finally, we’re involved in the process—we don’t have to go thru a brokerage or be at the whims of a corporate board.

I wish you the best of luck in 2012 with your family, friends, life and (of course) your investments!

Selling Your Tax Deed Property

Selling Your Tax Deed Property

Understanding Four Types of Deeds is CRITICAL to Selling Tax Deed Properties!

If you’ve acquired tax deed properties before, you’ll understand that it’s not always the easiest process to actually sell the property.

  • Title companies are wary to issue title insurance.
  • There may be unpaid liens, taxes and other encumbrances on the property.
  • The property might be occupied with a renter or former owner and you want to avoid eviction.

All of these issues and more might prohibit you from selling your tax deed property thru traditional channels.  (more…)

90% of All Tax Lien Investing Websites are Just Hype and Scams

90% of All Tax Lien Investing Websites are Just Hype and Scams

You probably already knew this.  If you do a search for anything related to tax lien certificates, you’ll come across websites promising you huge returns, little information or low-value product sales pages. I do alot of research on different states’ tax sales and tax lien law and it’s completely annoying what you find out there.

That’s why I created the tax lien investing website!

I really created this just for myself as a way to put my thoughts and resources together. Obviously, it’s expanded out quite a bit since I first started the blog.  I found that most of my emails from readers were new investors that jumped into buying tax liens because they signed up for some “easy money” webinar or marketing package.  Then, they discovered they didn’t have the first clue about the underlying real estate they bought liens on or they didn’t understand that their state required notices to be sent out, etc.

Lock in your PROFITS — Sell your Tax Lien Certificates!

Lock in your PROFITS — Sell your Tax Lien Certificates!

For many, tax lien investing is simply means to a safe return on their investment.  They do not want to deal with foreclosures nor take tax deed to properties that will require many hours of work.  I usually see three categories of investors that fall into this category.

  1. You are out-of-state.
  2. You are not experienced with foreclosures, rehabs, evictions, etc
  3. You just want to minimize your risks and lock in a profit

The good news is – there is a secondary market to sell your tax liens! 

Really, it’s out there; you just need to put in a little work to find it.  You’ll also need to keep a keen eye for low-ball offers on your tax certificates from speculators looking to take advantage of an unknowing seller.

INVESTORS –The obvious buyer is another tax lien investor.  How to find one willing to give you a serious offer? 

Networking with others at auctions, online forums and real estate investment clubs.  Find out if there are any other lien holders—these can include tax lien investors who hold positions before or after you – or, an alternative would be a mortgage holder.  You may find that they want to buy your position from you because it may be quicker to foreclose on your tax lien than their mortgage.

If you invest in tax liens in a judicial foreclosure state—call around to different tax lien attorneys. Attorneys that specialize in foreclosing on tax certificates and filing quiet title suits. The unspoken rule in these states is that the attorneys make all of the money. Why? They can charge legal fees that are well in excess of their actual costs and they get paid when the lien redeems. In states like Maryland, DC and New Jersey, a good percentage of the investors who show up at the tax lien auction are lawyers to invest in their own portfolios.


I’ve had success advertising my liens on (more…)

2013 Indiana Tax Lien Auctions

2013 Indiana Tax Lien Auctions

I wanted to point everyone to a quick guide I created last year to give you an overview of Indiana tax liens.  Indiana is a very lucrative state to purchase tax liens in; however, it’s not without risk because the bidding prices can well exceed the amount of taxes owed–this is called an overbid auction.  Find our more on my page dedicated to the Indiana tax sale.

You can also find great information about a specific Indiana tax lien auction by going directly to the auction or tax collector sites for the counties you are interested in.  The largest auction is held in Marion County, the county seat for Indianapolis.  It’s a public auction and the Marion County Treasurer provides great information about bidding procedures and requirements on their tax sale webpage.

If you’re interested in the smaller counties in Indiana, I’ll direct you to the website of SRI Incorporated.  They manage the delinquent tax certificate auctions for a large number of counties.  Be sure to click on their FAQ guides about Indiana tax certificates if it’s your first time to one of these tax auctions.