More Income Streams by JD Lovil

Author:JD Lovil
Language: eng
Format: epub
Tags: multiple streams of income, home based business, second income, independence, sell, write, process service, tax liens
Publisher: JD Lovil
Published: 2016-07-06T00:00:00+00:00

8 tax liens

TAX LIEN CERTIFICATES are available from twenty-two states, and from the District of Columbia. The states that offer tax liens are Alabama, Arizona, Colorado, Florida, Illinois, Indiana, Iowa, Kentucky, Maryland, Mississippi, Missouri, Montana, Nebraska, New Jersey, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Vermont, West Virginia, and Wyoming.

I am more familiar with Tax Lien procedures in the state of Arizona, and the county of Maricopa than I am anywhere else. Because of this, the information in this book will be the specific information about that location. I think that most states have a similar set of rules, but you should research your state before you get involved in the process.

When some landowner, or another Real-Property owner, forget to pay their Real Estate taxes, the state is anxious to get the tax money any way they can get it. For just the price of the money owed in taxes, they are willing to see the title of the property pass to someone else. They will issue a tax lien against the property, and then they will sell that lien by one method or another to interested investors.

Here in Arizona, the state will conduct a tax lien sale in February for any property delinquent in paying their property taxes. The 'sale' here consists of an auction format. The price of any property lien is equal to the taxes owed, plus a small fee for conducting the sales process. All tax liens start out with a 16% interest rate on the lien, and the bidders will 'bid down' the rate by one percent increments. The bidder that bids down to the lowest rate wins the right to buy the lien on the property.

When the tax on a property is delinquent for three years, the holder of the lien can apply for a tax deed on the property. Each time the tax goes unpaid during the three-year period, the tax lien holder can pay the new delinquent taxes. The State will add them to the principal of the tax lien, upon which the property owner must pay the interest and the tax principal if he wants to reclaim the property.

The listings of properties up for tax liens sales are available from the County Tax Assessor's Office. I think this costs the paltry sum of fifty dollars in Arizona. If you want to do a good job of gleaning worthwhile prospects out of the list, you will need to do a bit of online research. You will also need to do lots of legwork, to find good candidate properties.

Any properties that do not get a bid during the auctions in February will be 'struck back to the state.' This means that the state will hold the right to sell the tax liens 'over the counter' to interested parties. This is where I like to start the process. I do not have to get swallowed up by auction fever. The tax liens have not been bid down so any of these that you buy will be at the original 16% rate.

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