Your Common Tax Lien Questions Answered!

Posted by | Tax Liens | Tuesday 10 August 2010 8:50 pm

Question 1: What is a Tax Lien?

A tax lien is a right to take ownership of a property due to tax payment delinquency usually by a federal government, a state, or even a county.

Question 2: Who can buy tax lien certificates?

Anyone who has the money can buy tax lien certificates. Just remember, you are only paying for the owner’s unpaid taxes, so you are not actually doing any foreclosures.

Question 3: What is the limit of acquiring tax liens?

There is no limit actually. You can acquire as many tax liens as you like if you have got the cash to pay for them.

Question 4: Where do I pay?

You will be paying the government agency not brokers or any other intermediaries.

Question 5: Who will then pay me the returns?

The government agency to which you paid the delinquent taxes for will be the one to contact you when the property owner has paid for his taxes. The agency will then require that you return the tax lien. After the process, you will be receiving a government check.

Question 6: Are tax lien certificates transferable?

Yes, tax liens are transferable. You can transfer these to anyone you like.

Question 7: Will all the counties and states have the same processing when you purchase tax liens?

Actually no, each county and state have different rules to acquiring tax liens. So before you go and purchase tax liens, make sure to research about your chosen county’s rules.

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