| It was one of those late nights where the TV is | | | | with the upside chance of possessing a house if your |
| teaching you how to make a million dollars just by | | | | loan is defaulted. |
| parting with four payments, no make that three low | | | | Being the shrewd business opportunist that you are |
| payments if you acted now (that's why you don't | | | | you will obviously want the homeowner(s) to default |
| keep a phone near your bed). Then the most | | | | on the loan. If you feel a sense of sorrow for the |
| interesting infomercial came on covering an area I | | | | homeowner well that's understandable, but remember |
| know very well, that being foreclosures and | | | | you helped them by providing extra time for them to |
| government auctions. In this case it was in the form | | | | pay their taxes. If they still can't pay them after the |
| of what they referred to as 'property tax sales'. For | | | | extra time is exhausted then it is in their best |
| the more sophisticated audience that would be | | | | interest not to be burdened with owning a house in |
| referred to as 'tax liens' and 'tax deeds' government | | | | the first place. Renting would be a much cheaper and |
| auction property sales. | | | | a less stressful near term solution for them in this |
| In this infomercial they were claiming that if you | | | | situation. |
| purchased their program you could run out and buy a | | | | Tax deed sales are different then tax lien sales, |
| nice house in a great neighbourhood for under $1000. | | | | other than the fact they're both available at |
| Examples were shown of modern executive type | | | | government auctions. A tax deed sale is when the |
| homes that were acquired for $2000 to $3000 | | | | government is selling a foreclosed property itself |
| dollars. They briefly mentioned this was done by | | | | rather then selling the debt on the property. In the |
| paying off someone else's taxes. But that was about | | | | case you as the investor would purchase immediate |
| as much detail as they went into, the rest was | | | | rights to the property. So depending on the situation, |
| focused on the great houses you would be | | | | the government has the choice of selling a lien |
| guaranteed to purchase if you simply bought and | | | | certificate or proceed with a tax deed sale, in order |
| followed their program. | | | | to cover the homeowners tax debt. With a tax deed |
| So can you purchase a nice house in a good area | | | | sale the current homeowner has no choice but to |
| through a tax lien or tax deed opportunity for a | | | | surrender the rights to his or her property. |
| couple of grand? Well the answer surprisingly enough | | | | The good news for the homeowner is that they will |
| is yes! It's just that the infomercials aren't creditable | | | | be cleared of all liens and debts related to the |
| because they don't provide any insight as to how this | | | | property. So depending on the prearrangement and |
| could be possible. There are actually two possible | | | | local state laws, you as the investor, upon receiving |
| ways to receive very inexpensive homes. Here's how | | | | title of a tax deed sale, may be responsible for any |
| it works. It's a known fact that the government if | | | | outstanding liens, mortgages, and any other debts on |
| not an entity that you want to default on when it | | | | the home. If there is one thing you should take away |
| comes to paying property taxes. They will always do | | | | from reading this it would be to understand what |
| whatever it takes to retrieve these taxes as it is | | | | debt, if any, you will be inheriting when purchasing a |
| counted on to cover the budget for the local | | | | tax sale property (or any property for that matter). |
| community including schools, town and city | | | | This information is publicly available and can be readily |
| inter-development, etc. | | | | found at your local government office. Auctions |
| To retrieve these unpaid taxes the county | | | | where these tax lien and tax deed listings can be |
| government holds a public auction where they have a | | | | found are on a few of the better government |
| 'tax lien sale', and any one in attendance can bid on a | | | | auction sites. The link below provides free advise and |
| lien certificate that represents the debt owed by the | | | | reviews on how to find these government auction |
| homeowner. Basically, anyone in attendance is bidding | | | | sites. |
| over the debt of the homeowner. Over a | | | | Tax lien sales and tax deed sales are definitely two |
| predetermined time period the homeowner will pay | | | | of the best investments of any kind, which you can |
| the lien certificate purchaser with interest in | | | | benefit from by researching the right government |
| exchange for the investor covering their debt. So | | | | auctions sites. A review site will educate you on |
| here is where the opportunity for obtaining a cheap | | | | which government auctions sites will successfully |
| house is presented to the investor (lets assume you | | | | provide you with this information and make sure you |
| are this opportunistic investor). If the homeowner | | | | avoid many of the scams trying to charge for |
| fails to pay you back in full over a time period set by | | | | information they don't have access to. |
| the local and state government then you have first | | | | There isn't another investment available where you |
| right to foreclose on the property and obtain the | | | | can earn a 10%-20% interest, and if not paid, gives |
| properties title. So your investment helps out the | | | | you full title to a new house or an investment where |
| home owner as they can delay and hopefully avoid | | | | you can purchase a house outright for cents on the |
| foreclosure, while there is virtually zero risk for you | | | | dollar. So look into tax liens and tax deeds |
| as your investment is secured by the property itself. | | | | opportunities and who knows maybe you'll retire |
| You'll earn a very good interest rate on your loan | | | | sooner then you think. |