Tax Certificates Or Judgements?
Hello Everyone!
I had a question or maybe two. Has anyone had any luck with buying tax certificates? I know in Florida if you buy tax certificates you can make 18% each year they don't pay there taxes and after 3 years you take the Deed. Anyways! Has anyone had in luck with that?
Also, does anyone buy judgements? Can this be a good return. I'm going to the courthouse tomorrow, but I was wondering if anyone had any thoughts.
Lance
Yes Tax certificates are a great investment.
Judgements are a little trickier but can be even better. Not for the faint of heart.
In either case you will need an attny who knows this area. This is not the game for amatures.
Thanks for your message back.
I'll look in to it..
You know I lived in Oak Park for a little while. I love the city of Chicago.
Lance
Lance,
I think you will find that in FL you do not get the deed. After a period of time the tax lien will come due and an auction is required. The government requires that the property is sold at a tax deed auction and the tax lien investor is paid off.
Some other states do allow a tax lien that has not been redeemed to convert into a deed. Normally a foreclosure or other legal action is taken but not always required.
John
[addsig]
John is right. In florida, AFTER two years, the holder of the tax lien certificate can apply for deed. After applying, an auction is schedule for the deed to the property to be sold. Generally speaking, these properties are run-down, and sell so close to FMV, there is not much room for profit if you are the high bidder. As far as the certificates themselves are concerned, keep in mind that the bidding STARTS at 18% and goes down from there. With the increased popularity of tax lien certificates, you get a lot of institutional investors at the certificate sales who drive the rates down into the single digits killing profit potential for private investors. :-x
Rob
Quote:
On 2004-04-19 09:37, active_re_investor wrote:
Lance,
I think you will find that in FL you do not get the deed. After a period of time the tax lien will come due and an auction is required. The government requires that the property is sold at a tax deed auction and the tax lien investor is paid off.
Some other states do allow a tax lien that has not been redeemed to convert into a deed. Normally a foreclosure or other legal action is taken but not always required.
John
There's a forum dedicated to this topic. Go to:
http://www.thecreativeinvestor.com/ViewForum16-3028.html