Iowa Tax Certificate Sales ?
I am VERY VERY new to purchasing tax certificates. My understanding is if I purchase the certificate and pay the back taxes, the home owner has a specified period to pay the tax and if he/she does not, you become the property owner. Given this if you pay say, $3,000 in back taxes on a home worth $40,000 and the person does not pay the back taxes you now have the title to the home. Can this be true? Any real and honest information would be appreciate. Not the TV/Book selling type of info. : :-?
I am not familier with Iowa tax sale laws, although I'm pretty sure they are a lein state and not a deed or deed/lein state.
Your best resource is going to be the research you do yourself, and I would start with reading your states statutes in regards to tax leins.
The answer to your question, YES, in general. The generality being that every state is different, and many counties within that state may also be different (but within the guidelines of the state statutes.)
If the redemption period(time the prop owner has to pay back the lein) expires you can bring a civil action against that individual(s) for the issuance of a tax deed. After the issuance of a tax deed, in some states, it's a done deal. In other states the former property owner has a period of time where they can contest the issuance of a deed. In all states they can only contest an appealable error (rules of civil procedure.)
So, as I said earlier, it's different in every state, but the answer to your question is YES, in general. Do your research and due dilligence.
Have a good day
I don't know what part of Iowa your from, but this site has info on Polk County, and some about the Iowa State Code on tax sales...
http://www.co.polk.ia.us:8080/modules.php?name=Sections&sop=viewarticle&artid=225
Iowa pays 2% per month, which would be 24% per year
This can be true! However, it is highly unlikely. Over 99% of tax liens are redeemed within the 1 yr. 9 mo. redemption period in Iowa (at least in my county). Owners will find a way to come up with the money. And if they can't, the mortagage holder will. There is usually too much at stake to let a decent property get to the tax deed stage.
If the property owner does not pay the subsequent taxes on the property that you hold the lien for, you may pay those, too, (14 days after they become delinquent) and start accruing 2% interest/mo. I did this recently when one of my liens did not get redeemed, and the owner did not pay the Sept. taxes. My $2500 tax lien jumped up to $10,000 because of this. I will keep my eye on this property to see if they pay the March taxes. If not, I will pay them again, and keep paying them until the 1 yr. 9mo. is up.