Tax Liens 101 - How to Profit from Delinquencies by Tony Martinez
Tony Martinez is the Founder and Chairman of the US Tax Lien Association, which is an organization that is committed and dedicated to helping others achieve total financial freedom through the power of investing in Tax Lien Certificates. With over 30 years of expert experience, Tony is the world's #1 authority on the subject of creating enduring wealth through the little know strategy of investing in Tax Lien Certificates, which gives anyone the opportunity to earn guaranteed fixed rates of returns of 18% – 36% interest per year, and acquire valuable real estate for approximately 10% of market value.
Most people don’t lose their primary residence for a couple hundred, or even a couple thousand dollars in back taxes. The vast majority of tax lien certificates on primary residences do redeem, which insures the 18%, or 25%, or 36% interest to the investor.
Tax Lien Certificates – Can you really get properties for a fraction of their value by investing in a tax lien certificate? The typical single-family residential home that doesn’t redeem is usually some sort of rental property, many times with an out-of-state or absentee owner. Tens of thousands of these types of properties get acquired through the tax lien certificate process every year.
Due to the most recent economic downturn, and the sub-prime mortgage crisis, we’ve also seen an extraordinary number of property taxes remaining delinquent due to the fact that the mortgage balance is more than the property is worth. With bank-owned properties at record highs, we’ve seen a higher-than-usual number of beautiful properties (both residential and commercial) being acquired through the tax lien certificate process.
Tax Lien Certificates – Why wouldn’t the bank pay off the delinquent property taxes? If there’s a bank mortgage on the property, and the property is being foreclosed on for delinquent property taxes, in most cases the bank will step in and pay the back taxes to protect their position, which insures the tax lien certificate investor will receive their 18%, or 25%, or 36% interest.
Although it’s impossible to know exactly why a property is lost to tax sale, here are some factors to consider when it comes to banks: