|
From
Buyincomeproperties.com Tax Lien Certificate
A tax lien certificate is the purchase of delinquent taxes on real estate! In the United States of America everyone pays taxes for the land and land a home sites on regardless of what it’s made form and how it got there, (mobile home, or built home). The owner of the property is responsible and must make sure that the taxes are paid. If the taxes are not paid then the county places a lien against the property and offers a tax lien certificate to investors at a public auction to recoup the unpaid tax. The non-payment of tax does not benefit the government because they have an outstanding balance which has not been paid. The county needs the money to fulfill its budgetary obligations by state statute and each county is authorized to collect the taxes that remain unpaid. The lien is secured by the real estate it is attached to. This means you are not buying the real estate; you are buying the government lien on the real estate (the senior lien). When buying a lien you are paying someone else’s property taxes – someone who hasn’t paid their taxes. The reason the investor buys a tax lien is because the government offers interest on the investment. • The interest could range from 1% to 50%.
• This can be a short investment and long term.
|
