New to this type of investment. I live in Boone county KY, was told @ court house they don't have tax sales or auctions, but you can purchase the leins. Now if I purchase, how do I collect the money?
The Information I have is old and may not be accurate with respect to int rate etc. however, In Tax Sale Certificate States, the holder of the tax certificate is paid interest on the amount they paid for the Certificate. When the tax bill is brought current. Generally the Cost of the certificate is the amount of delinquent taxes plus ant penalties and fees. In Ky the rate of return looks to be about 12%, (I think). The Lein has a maturity date (Ky looks to be 3 years). If the property taxes haven't been brought current by that date, you as the certificate holder have the right to foreclose on the property. If your Lien is not satisfied during the foreclosure process, The Sheriff will issue you a Deed to the property. This wipes out existing mortgages and most other liens if the property is not redeemed before you get the deed. Check with the Sheriff's office on the specific procedures in your area. They will be able to offer insight as to the best course of action for you to get clear title if the need arises.
Good Luck,
Jeff
I understand tax lien certificates purchased by someone like yourself is paid by the county when it is collected. You get back all the monies you paid (the lien amount and penalties), plus the penalty rate (ie. 12%). It's a great investment opportunity compared to investing in stocks BUT, the average percentage of homes actually going into foreclosure and title going to you would be around 3%. Don't let that discourage you, though...it's an awesome investment secret
The Information I have is old and may not be accurate with respect to int rate etc. however, In Tax Sale Certificate States, the holder of the tax certificate is paid interest on the amount they paid for the Certificate. When the tax bill is brought current. Generally the Cost of the certificate is the amount of delinquent taxes plus ant penalties and fees. In Ky the rate of return looks to be about 12%, (I think). The Lein has a maturity date (Ky looks to be 3 years). If the property taxes haven't been brought current by that date, you as the certificate holder have the right to foreclose on the property. If your Lien is not satisfied during the foreclosure process, The Sheriff will issue you a Deed to the property. This wipes out existing mortgages and most other liens if the property is not redeemed before you get the deed. Check with the Sheriff's office on the specific procedures in your area. They will be able to offer insight as to the best course of action for you to get clear title if the need arises.
Good Luck,
Jeff
I understand tax lien certificates purchased by someone like yourself is paid by the county when it is collected. You get back all the monies you paid (the lien amount and penalties), plus the penalty rate (ie. 12%). It's a great investment opportunity compared to investing in stocks BUT, the average percentage of homes actually going into foreclosure and title going to you would be around 3%. Don't let that discourage you, though...it's an awesome investment secret