Subject: Tax Liens

Hi {!firstname_fix}

A tax lien happens when you have not
paid your taxes to the local
municipality. They will issue a lien
against your property that says the
property can’t be sold or change
ownership until the lien has been
satisfied. A tax sale differs from a
foreclosure in that when the public
authority offers the property for sale
to satisfy a tax lien, the successful
bidder buys the right to own the
property if the property owner does not
repay him. 

There are three types of liens:

1. Judgments or judicial liens, which
result from a lawsuit by a creditor. In
New Jersey, once these judgments are
docketed in the Superior Court, they
become liens on real estate.

2. Statutory liens, the most common
example of which are IRS or
county/state tax liens, and property
tax liens. 

3. Consensual liens, such as mortgages.

You don’t have to be an attorney to
understand liens any more than you have
to be a mechanic to drive a car. But be
forewarned! I suggest you ALWAYS
consult with an attorney to dot the i’s
and cross the t’s. You must decide,
based on your research, whether to do
the deal.

#1: You don’t pay your local taxes.

#2: The local government puts a lien on
the property for the unpaid taxes that
prohibits sale or transfer without
payment.

#3: Government auctions tax lien
certificates to compensate for the
unpaid taxes. You bid. (NOTE: Always
physically check out the property and
do lien, judgment and title searches
before you buy.)

#4: Lowest interest bid, or fixed
interest to the highest bidder.

#5: What if the property owner doesn’t
satisfy the lien? In some states, the
tax lien certificate owner just applies
for and gets the deed. In other states,
the property is auctioned. Need 10%
cash, with the remainder in 30 days.
You bid the unpaid taxes plus interest
due you.

This is a true scenario. A tax
purchaser purchased a lien on a piece
of commercial property for $12,000. The
property was owned by unknown owners,
which all the proper notices were sent
out and there was no redemption. He
acquired the property, which was valued
to be over $350,000.00. His return was
over 29 times his investment. 

Arizona pays certificate holders 16%
interest. At the end of 20 years, a
$2,000 would have grown to more than
$30,000 with tax-deferred earnings. 


Follow the link below to find out
more..

YOUR LINK


Regards,
YOUR NAME

