Questuon about tax sales

When you buy a tax lien certificate you can not take possession of the property until the redepmtion period ends without the delinquent tax payer redeeming. You would not get possession right away even after that fact, because you would have to apply for a tax deed or treasures deed. In some cases, you might even have to wait to take possession until after an auction occurs and you win the bid. During the redemption period the proeprty will be occupied by the delinquent tax payer, so you will have the repairs that they cause to the property.
I hope this helps.

NO NO NO !!! You cannot live in the properties until the redemption period is up.....BUT... I was talking to this old man who is a million -air from tax liens he goes to talk to the people who is living in the properties. But he does collect rent on most of them others he does not!!If I can help you just ask the laws are pretty much the same. In 2 more months I get 2 more houses. I,m so excited!!

I recently took a tax sale class from a real estate lawyer. She said that the redemption period does not start until you take possession of the property. She said if it is a vacant house you should put a tenant in it. If it is vacant land you should put up a wire fence.
This is completely the opposite of what I have always been told.
What is the truth?
I am in north eastern Alabama.
Thanks!
Lauri

Hey douglauri how are you doing! I have been doing tax sales properties for 5 yrs. I am in montgomery Al. And the rules clearly states that you are not allowed on the property until you take possession of the property! You will be considering trespassing!Now this And after you buy the lien it is 3 yrs.after the day you buy the tax lien!But my question to you is why wait that long? You can go and talk to the property owners and see what they are going to do with the property!But I have found that most people do not know that they have three yrs. to get their property back. They mostly give up on the property! So if you offer them $500 to sighn over the property to you then you can do what you want with it!If I can help you in any way please ask!Thank you Darrell!

hi Darell very new to the business and wanted to know if the owners had a mortgage on the property what happens to that.r u responsible to pay it after the redemption period

After you apply for a tax deed and the property goes to auction, only government liens stay with the property.

http://www.taxdeedsinfla.com

No Tha tax lien is the senior lien! Which means it wipes out all other liens except federal lien! The mortage company was the first to get the first notice to pay the taxes! They CHOSE to not pay them!!Which is good for you and Me!If you need any help let me know!

looks like escobarm has got it backwards!First,property goes to auction Next you apply for tax deed! And the redemption period starts the day you buy the tax liens!!

wait i cant seem to make sense of this....
if they will still throw the property in auction after the redemption period is up without the lien being redeemed, what do i get in return if i never won the bid on the property? and who pays for the interest of my investment?
i thought i am guaranteed by law that either i get the interest or the property right?

and Darell, if you offer the delinquent tax payer $500 to sign over the property to you before they are foreclosed, aren't you going to be stuck with his mortgage payments since the gov hasn't foreclose the house yet? and all the other related responsibility as the owner? and won't you have to redeem the taxes which you've already paid to the county? because by signing over before foreclosure, that'd make you the delinquent tax payer right?
sorry, everyone seems to have a different story to everything, just trying to get things straight here

Hey JC. Tang Due Diligence!! Thats very important! Yea Here in Alabama the property goes to auction, pay on it for 3 yrs. then get a tax deed and the property is yours!Now I had already checked on that property that he wanted $500 to sign over the deed! Each property is a different situation ! You have to see which one best works in your favor!See there was not a mortage on that property !I think you are running 2 or 3 different situations together!If I have helped you or can help you drop me a line!

hey darrel thanks for the information, i did a lot of research on tax liens/deeds this week so now i kind of get an idea of how the due diligence is suppose to be done on the titles and properties.

Each state is a little different...we have gone to tax deed auctions, where you bid on the interest rate, ex: this state's rate starts at 18%, then another bidder may bid 17%, then 16% is bidded, etc. Whatever interest rate you "win", lets say it 16%...you pay off the back taxes, & then are guaranteed
that interest rate for the period. Now you have to wait the redemption period in your state, ex: 2 yrs. Now if the delinquent taxpayer, pays his back taxes & interest, the 16% interest is yours; if they don't pay the back taxes after that period, you can file & force the property go to auction...then the highest bidder wins the property, you still get your 16% & he gets the property free & clear(of course you can bid on the property also).
I know some local investors here that don't file & force the auction, this way they still earn the 16% interest for up to 7 yrs.
Now that's better than any bank's CD around, & it's also guaranteed !

i was just listening to a tax sale webinar last night & became very interested in learning the process of tax sales. I would love to start investing in these. Can any one inform me on how to actually get lists for these type of sales? thanks so much in advance.

Find out who in your county is responsible for taxes. Like in my county it is the tax assessors office. Go down there and find out whether it is a Tax Deed or Tax Lien Certificate county. Also they can tell you when the next auction is. Usually, they release a list of properties for auction 30 days prior to the auction. These lists can usually be found in the newspaper or online.

The state of Missouri has every county in the state sell tax liens at public auction on the fourth Monday in August. They will advertise properties for three weeks prior to the sale. In my county that started Friday July 23rd, will be published again on Friday July 30th and Friday August 6th. Other counties will have similar advertising requirements. My county uses the local daily paper in the county seat. These are cash sales but the typical tax lien sells for three to four percent of the property value. Missouri has a one year redemption period and pays 10% interest on the tax lien money.

I searched this site and can not figure out what the difference is between tax lien cert. and tax deeds. Does anyone care to elaborate on this subject?
Thanks,
Peggy

A tax certificate is when you pay someone else's property taxes for an interest rate on the amount and depending on the state your on there are differences in how many years you hold the certificate before you can request the clerk's office to sale the property for taxes. You hold a tax certificate on the property and the property has a tax lien. Once the property is sold for taxes at an auction the winner holds the tax deed.

I wont have Social Security Or Medicare IF or when I retire?!! Tax Liens will be my moneymaker! BUT I just want to say here. That some states handle Tax Liens differently than others. Why the different answers. This is why just go to your local Tax Assessors Office. They will have info about Auctions and other information in that State.

Roland

I was just wondering. I live in a tax deed state, so I am more interested in the avenue of purchasing over the counter. Have you done any of these? I live in Maine and say, for example, I wanted to buy in Florida...how do I do that?

Thank you,
Lori