Do I Need to Hire a Tax Lien Attorney for Quiet Title?

Do I Need to Hire a Tax Lien Attorney for Quiet Title?

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!


If you purchased a tax lien or tax certificate in a state that does not have a strict judicial foreclosure process, then your more than likely going to need to hire a tax lien attorney to file for quiet title if your lien does not redeem.  However, this step is not always required.  It really depends on what you are going to do with the property. 





 

What is a quiet title action?

An action for quiet title is a lawsuit that you, as the tax deed recipient, file with the court to eliminate any future title claims against the property and remove what’s called the “cloud on title”.  Tax deeds are the least defensible form of ownership for a property.  The taxpayer or mortgage company on the property could claim that they were never notified that they owed taxes.  Many times, there may have been a death of the property owner and the heirs never realized they lost the house for taxes.
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Seven Investors Who Should NOT Invest in Tax Liens

Seven Investors Who Should NOT Invest in Tax Liens

Since starting this blog, I’ve gotten quite a lot of emails, comments and questions about investing in tax liens.  One observation I’ve made is that this investment is not for everyone.  There’s a lot of hype and marketing out there that makes tax lien investing seem to be a low risk, high return investment that just about anyone can do.  But, actually, tax lien investments are highly illiquid, time intensive and the high returns are sometimes associated with higher risk properties.

So, whom is tax lien investing NOT for?

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How Much Can You Really Make Buying Tax Liens?

How Much Can You Really Make Buying Tax Liens?

With so much hype about tax lien and tax certificate investing, the question comes down to how much can you really make from buying tax liens?  The advertised, statutory rates in some states are as high as 24%.  Most states fall somewhere between 12% and 18%.

But, can your really earn that much?  If that was the case, wouldn’t just about everyone put their investments and retirement dollars into tax certificates?  You’ve probably seen courses where they talk about how to buy tax liens and promise huge returns.
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The ONLY Five States Where You Should Buy Tax Lien Certificates

The ONLY Five States Where You Should Buy Tax Lien Certificates

I get the questions all the time…what are the best states to buy tax lien certificates in?  Like all real estate investments, the natural answer to this is to only buy delinquent tax certificates in areas that you know best—your local market or areas you have other real estate investments in.  However, the explosion of online auctions and wealth of due diligence information on the web has now given us the ability to invest in just about any state that sells tax liens.  I’m not limiting my buying to just Arizona and Colorado which are near me, I now can buy anywhere in the nation.

So, now, there is competition among states for investors—what separates them are their statutes governing tax lien investing (do they favor the investor or the taxpayer?) and the ease of buying the liens (are the auctions online and is the assessor’s information up-to-date?).  Feel free to post your comments and reasons why you think I’m wrong, but below are the only states I feel you need to invest in.

Florida Tax Lien Certificates

Florida tax lien certificates should be at the top of everyone’s list for many reasons: the ease of buying liens at the online auctions, the laws and processing of tax payments are very investor friendly and the online information from assessment data to tax data is very current and accurate compared to other states.  Florida sets the bar for all the other states that sell their property taxes and will set the trend going in the future.  The main downside that there is a lot of competition out there the bring rates down quite a bit—but with Florida being the largest tax lien certificate market out there, you can usually find a niche to buy at higher rates. You can also find out more about Florida tax lien certificates in my Kindle e-book called: A Beginner’s Guide to Investing in Florida Tax Lien Certificates.

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So Many States, So Many Ways to Invest in Tax Liens

So Many States, So Many Ways to Invest in Tax Liens

The laws that define tax liens and tax deeds vary like flavors in an ice cream shop – some are similar but not one is alike.

First, let’s talk about how states sell their delinquent taxes.  There is a split among states—some states sell tax deeds at auction direct to the public.  These are known as “tax deed states”.  They include:


  • Alaska
  • Arkansas
  • California
  • Delaware
  • Idaho
  • Kansas
  • Maine
  • Massachusetts
  • Michigan
  • Minnesota
  • Nevada
  • New Hampshire
  • New Mexico
  • Oregon
  • Utah
  • Virginia
  • Washington
  • Wyoming

Other states (the focus of my tax lien website) sell their tax liens “tax lien states”.  These states choose this method because they can recoup their lost tax revenue quicker and it’s a cheaper option for them because they do not have to send out delinquent tax notices and begin foreclosure—they simply pass the costs on to the investors.  Twenty-two states plus DC and Puerto Rico sell their taxes as liens to investors.

The method that they sell these liens varies widely.  Most tax lien states sell through some sort of public auction—either live or online.  If the liens are sold at this auction, there is usually a way to buy the liens directly “over-the-counter”. A few jurisdictions sell their entire pool of delinquent liens in bulk to one buyer—usually a bank or tax lien servicer that specializes in managing tax liens.
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Tax Lien Investing Book Review

Tax Lien Investing Book Review

A subscriber to my blog recently asked me what books are out there to help her get started investing in tax liens.  My answer should have been “my book, of course”. But, I’m not there yet.  I’m about a 1/4 of the way through with a goal of completing it by October 1st, 2011.  It will be “the source” for those just learning about how to invest in tax liens and those who have much more experience looking for strategies and ideas to manage their portfolio.

For now, I recommend the book The Complete Guide to Investing in Real Estate Tax Liens & Deeds: How to Earn High Rates of Return – Safely by Jamaine Burrell over the other books and e-books you can find online.   Although the author does not have that much direct experience investing in tax liens, she paired up with a seasoned investor and brings in-depth knowledge about investing in tax liens across a broad spectrum of topics.  I use it more as a reference book when researching specifics about a state or topic such as random selection bidding auctions.

It does not, however, discuss strategies for selecting properties to bid on nor does it share experiences of managing the foreclosure or quiet title process.  It’s a book that won’t convince you to get into the tax lien market, but it will be a useful guide once you’ve decided that your ready to buy tax liens and need a straight-forward guide to the terms and processes involved.

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