Real Estate For Pennies On A Dollar: Secrets Of America's Wealthiest Investors (How To Invest In Tax Lien Certificates: America's Wealthiest Kept Secret Book 2) by Robinson Doris
Author:Robinson, Doris [Robinson, Doris]
Language: eng
Format: epub
Publisher: Unknown
Published: 2013-02-01T16:00:00+00:00
Chapter 3 Buying Tax Certificates At the Annual Sale
Whenever you buy a tax certificate secured by a valuable parcel of real estate, you will almost always be substantially better off financially if the property, which is security for the certificate, were not redeemed.
Consequently, even if you buy tax certificates at the annual "tax certificate" tax sales in states with very high interest rate returns strictly for the return upon redemption, you should attempt, whenever possible, to buy those certificates which are the least likely to be redeemed.
Buying real estate for just pennies on the dollar through the "tax certificate" tax sale process is more difficult than buying certificates over-the-counter. But it can be done – once you know how!
All you have to do is follow my “Steps to Success” which are laid out for you, step by step.
The First Step: Buy tax certificates in those states where the bidding process does NOT adversely affect the price you would pay for the real property if the certificate is not redeemed
Obviously, it’s going to be much more difficult to buy real property for, basically, just back delinquent real estate taxes (or just a few pennies on the dollar) if you attend annual tax certificate sales where, if there is competitive bidding, the price of the real property is bid up!
Consequently, before determining whether to attend a tax certificate sale in any given state (and, sometimes, in any given county within a particular state), you should determine the bidding system used.
States with undesirable competitive bidding systems: Bidding up the price of the property
Alabama , Maryland , Missouri , South Carolina and Vermont (together New Brunswick and British Columbia Provinces plus the City of Vancouver, Canada ) are certificate jurisdictions that have competitive bidding systems involving bidding up the price which makes it just as difficult for tax sale investors to buy real estate for just back delinquent real property taxes, etc. – or for just a few pennies on the dollar – as would be the case with "public oral bid foreclosure auction" tax sale and "deed with right of redemption" tax sale jurisdictions.
Maryland
Maryland is an example of a certificate state where if there is competitive bidding on a particular certificate being sold, the price an investor would pay for the real estate securing the certificate is bid up.
Maryland law provides that: “All [tax certificate] sales shall be a public auction to the highest bidder , in fee or leasehold, as the case may be.”
Maryland law goes on the state that
“the collector [of real property taxes] shall require the purchaser to pay, not later than the day after the sale, the full amount of taxes due on the property sold, whether the taxes are in arrears or not, together with interest and penalties on the taxes and expenses incurred in making the sale. The residue of the purchase price remains on credit.”
That is, the high bidder does not pay the full amount he or she bid on the certificate, but only the amount of the opening bid, i.
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