Beginning Info On Liens.
Where would I go to get info on tax liens? I know a little... it doesn't seem overly complicated but I can't find the process laid out anywhere.
I know of a property that is behind in their property taxes a couple months.. it's only like $100. But you're saying I could call the county and purchase that for $100 and then get paid back interest ? So for example I could end up getting $120 or so back?
Thanks,
Chase
Iowa is a pretty good state for liens
http://www.4-tax-lien-certificates.com/iowa.html
This is a paid service, but you don't need to pay for the lists. The county treasurer should be able to help.
http://www.iowatreasurers.org/directory.cfm?ID=1&ParentPage=29
Click on the county services list on the left to choose any county.
If you are interested in another state this website should be able to put you in touch with the appropriate county offices, and even help you find information online.
http://www.netronline.com/public_records.htm
Thanks for the links.
My question is basically, do you have to go to the auction every month to purchase a lien? For example, near my dads house is this VERY run down property, a salvage title mobile home sits on it.. it's an acre. Theres a couple cars there... haven't moved in awhile and stuff. I looked it up online just to see who it is because it's very out of place. I noticed they missed their property tax payment in september. My question is, can I just call the county and say "hey, I want to buy this lien, heres $100(about what it was)". Then when the guy finally decides to pay it back, I get 2% interest/month plus costs(iowa)? Or do I have to go to the tax sale and bid on it?
Thanks,
Chase[ Edited by Ruman on Date 12/13/2003 ]
To answer your other question, if the taxes on a $100K property were in arrears and you bought the lien for $5K (just making the numbers up), in Iowa you would make 2% a month, for an annual return of 24%. You only get this money when they pay their taxes.
If they never pay their taxes you either get your money back when the property is sold at a tax sale, or you inherit the property free and clear (all other liens are wiped out, which is why it almost never happens because the bank would show up and buy the property). This part of it is different for different states, and I am not sure how it works exactly.
I think in some states you could lose if it went to tax sale and someone bid less than the amount of tax on the property. This should never happen, because you should be at the tax sale to get the price above that level.
I think I have the basics right, but someone else might like to offer more details.
Sorry, my last post was in response to your first one.
I am not sure about Iowa, but as I understand it there are a lot of liens that do not get sold at auction. Just go to the county office, ask for the list and buy the ones that you like. No bidding or anything.
Now, if they are only a couple of months past due I don't know if the lien would be available just yet. You probably do have to wait until the lien on the property is actually offered, which may be once a year.
A quick call to the county should answer the questions in less than five minutes (although it could take you a couple of hours to find the right people to ask).
You've been great help. I think I'll give them a call on Monday and try it out.
Thanks,
Chase
Excellent I just found the tax sale list online! It lists all of the properties, parcels, and back taxes. So basically every property would essentially be the same risk and same ROI. Why wouldn't more people do it?
Probably because they don't know about it. Make sure you check the property out though. Don't need an inspection or anything, but you don't want to buy a lien on an old gas station with underground gas storage tanks that nobody wants and isn't going to pay the taxes on. You could end up with the obligation to remove them etc etc. An exaggurated example, but just so you know.
Good luck. I invest in Nebraska, and plan on buying Iowa tax liens in the not too distant future (very quick drive form Omaha to Patawattamie county, sorry if I spelt that wrong).
I also see that theres like a $100 registration fee to goto the tax sale. Is that also common?
I am not sure about the fee, but I think it is common.
Come to think of it, the county might also charge you for the lists, my earlier comment may have been incorrect. But it is probably only $20 or so.
Ruman--(IA)-----------
While Marcher may have been helpful to you, some of the information farom Marcher is incorrect and garbled.
I know only one state were the properties with tax liens purchased by an investor would go to a tax sale: Florida. In the other states, only the lien investor could buy the property or get a deed to the property using the tax lien to do so. There may be a foreclosure process or there may be an administrative process, but the lien can be turned into a deed after the right of redemption has expired and the proper steps are taken, including notifications to the title holder and other holders of obligations against the property.
You can first buy the lien at the county tax auction. In Iowa, this would mean in June, when the county holds it. Then, you can buy any unpurchased liens later at the "adjourned" sales in Iowa. In different counties these sales might be once a month--suggested by what you posted--or every day, or at some other interval.
So, there are no liens which don't come to auction initially. They all do. And you can only buy those which nobody else bought at the tax lien auction.
You might try contactaing owners with delinquent properties before the tax auction. You might buy the property cheap. You might get some information about the property that would cause you not to want to own it and not to want to buy a tax lien against it. Or, you might find out some information that makes is more attractive to you.
I suggest that you read the state statutes about the collection of delinquent property taxes. Also, read the websites of some of the county treasurers' offices to see what they say about the procedures in their county.
And, you don't have to limit yourself to the county in which you live. You might find good deals in other counties also.
Good Investing******Ron Starr*********
Go to www.woworks.com click on state than county. All the information you want or www.contacts.I use this all the time
Have a great day
Tim
Sorry about the typo it should read all the www.contacts.I used this site to find out about florida tax sales,and to find struck off www.properties.Contact your local courthouse they are willing to help.
Tim
tjbab--------------
Could you check those URLs your provided? They don't seem to have anything to do with real estate, tax liens, or government offices, as written.
Good Investing********Ron Starr**********