| Have you ever thought about what the | | | | actually hoping the owner will default on your |
| consequences are when a property owner becomes | | | | property tax sale loan so that you can take |
| incapable of paying their taxes? Well as you may of | | | | ownership of the property. Actually you don't have |
| guessed the tax man is unforgiving and they will do | | | | to feel guilty because you have relieved them of an |
| whatever is necessary to retrieve the tax owed, | | | | impossible debt situation and saved them from being |
| including forcing the buyer to foreclose on the | | | | forced into bankruptcy. It allows the owner a chance |
| property. On the surface this may appear like a very | | | | to start a new chapter in their life with available |
| bad situation, however, there are other sources of | | | | credit and a clean slate. |
| public financing available to help this owner. That's | | | | Do you think property tax sales are a worthwhile |
| where people like you can profit while providing a | | | | investment? Read on as it gets even better! |
| potential 'light at the end of the tunnel' for the | | | | Whenever a property tax sale is auctioned off that |
| distraught home owner. | | | | date becomes the starting date for the redemption |
| A public property tax sale, also known as 'property | | | | period, and the clock starts at that point. As I |
| tax liens', are auctions organized by local government | | | | mentioned earlier the owner has to pay their taxes |
| councils in an effort to dispose of tax debt. What | | | | before the redemption period expires in order to |
| occurs is that the public bids on the debt owed by | | | | keep their house. Where the opportunity lies is that if |
| the property owner. For argument sake say you are | | | | the tax lien certificate is not sold at the auction, that |
| the winning bidder. That means you are paying off | | | | auction date also becomes the starting date for the |
| the tax debt on behalf of the property owner by | | | | redemption period. Just a few years ago these |
| buying a tax lien certificate which establishes you as | | | | auctions where relatively unadvertised, so in fact |
| the new lender to the property owner. The property | | | | there are tens of thousands of property tax sales |
| owner has to pay you back with interest before the | | | | liens that have already surpassed their redemption |
| expiration of the redemption period as predefined by | | | | periods. If this last paragraph sounded complicated |
| the government. This redemption period can be any | | | | that's okay, because the bottom line is that by simply |
| time between 6 months to 4 years. | | | | paying the debt of an expired property tax sale lien |
| However, the caveat for the property owner is that | | | | you take possession of that property immediately. |
| if they don't pay the loan as agreed upon, you, as | | | | The opportunity here for a savvy investor is better |
| the lien certificate owner may foreclose the property | | | | then any investment I am aware of! Whether the |
| and take title of it. Everyone wins, so long as you | | | | house is for you to live in, rent, or flip back onto the |
| are payed back the full amount of the tax debt plus | | | | market for a good profit just imagine the boundless |
| the healthy interest owned. This way, you obtain a | | | | opportunities. You can purchase an expired property |
| good interest rate on a very low risk investment, | | | | tax sale lien for anywhere between $1000 - $20,000 |
| while saving someone from losing their property and | | | | and immediately turn around and sell it in the open |
| or home. | | | | market, in some cases for a $180,000 profit! |
| I won't tell anybody, but I'm guessing you are | | | | |