Total Newbie Needs Help
i am totaly new to buying tax leins ,as a contractor for many years i have been buying forclosed , reo and huds for years and fixing and fliping , but i now live in las vegas nv , and the homes are mostly over priced here and there arent any huds , there are some sales of propertys from the non payment of assesments due to the county ,
would this be the same as a tax sale ?? if am able to buy a property what next ??? i then will have to pay any mortage that is on the it , right ??? do i then have the right to ask the people if any living there to leave ???
great site , i am reading as many posts as i can to learn , but i havent found any exactly to answer my questions , thanks in advance
There are two different types of sales, tax lien sales and tax deed sales.
On a tax lien sale, you purchase a lien against the owner of the property, which s/he must pay off within a certain amount of time or you have the right to begin foreclosure proceedings. You do NOT get the actual property at the time you purchase the lien, you must go through the foreclosure process and there is no guarantee you will end up with the property.
On a tax deed sale, you do end up with the property itself, subject in some states to a redemption period where the original owner can reclaim the property by paying back taxes and fees. However, usually the deed you get on a tax deed sale is not insurable, so you would then need to initiate a court action called a quiet title suit, which would then give you title that a title company would insure. You would have the right to evict the occupants.
In most cases, should you get the property you will get it free and clear of all liens except government liens (such as mowing liens, etc.). If there is a mortgage, almost always the mortgage company will pay the lien before foreclosure so as to protect its interests in the property.
I have bought some tax lien and my experience is that 1. the owner can redeem it within a year or specified period by paying you a good rate for interest(20% ?)
2. You have to pay the taxes during that time if the owner does not pay it
3. You have then to go through the foreclosure process to get the physical control of the property.
But assessment lien could be different. I believe in some liens you can not foreclose the properties but the owner can not sell it without satisfying the liens.
Best thig is to check with the county, who have made the law for handling them.
very cool info guys , thanks ....during the time i first posted i did alot of research , i found that in my state and for this type of lein i can only collect 1 percent per month , and redemption can be made within 2 years , ...thanks guys
well this is true , but i like my money to work harder then that , i mostly like to buy homes that need work and under value , ( reo or huds ) and then fix and flip , i buy most with cash out of pocket and if i tie it all up i wont be able to buy anything that comes up in short notice , but you are right , good investment . thanks to all for the info .....theres a world out there i didnt know about until i stumbbled onto this site .