Archive for the ‘Tax Deeds’ Category
The Kinds of US Tax Sale Properties
June 20th, 2011 | 
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Understanding the different kinds of US government tax sales is the key when one is planning to get tax sale properties as an investment. There are different kinds of tax sale properties in different states. Also, investment and sale guidelines differ in tax lien investing.
Tax deed sale is a kind of government tax sale. There will be a force sale of the property by the government tax authority if the owner of the property has been delinquent for a certain time period. Before the sale, a notice is sent to the owner of the property. Afterwards a public auction is held where the highest bidder gets to claim the property. To compensate for the back taxes amount and interest due of the property, there is a minimum mandatory bid. Once the transaction has been completer, property ownership is transferred to the highest bidder which is the new owner.
On the other hand, tax lien sale is the other kind of tax lien sale. Unlike in the tax deed sale, the investor does not purchase the property deed. Instead, the investor only pays and purchases the actual tax delinquency amount on behalf of the owner of the property. The owner of the property will then be given a certain timeframe to pay the debt in order to release the lien after which the investor can foreclose on the title of the property or initiate a tax deed sale so that he can recoup the investment.
Being an investor, one can choose what type of government tax sale he will invest on. You can do one or even both. It all depends on how you will be able to execute it. Through thorough research, you will soon have tax sale properties along with the growth of your investment portfolio.
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