What Are Tax Liens?

sharpREI_PA profile photo

I am not familiar with this method of investing, so I am hoping someone can explain to me what is a tax lien and how is it used in investing In a nutshell?

Thanks!!

CG

Comments(4)

  • RonaldStarr20th January, 2004

    Sharp REI__ PA---------------

    I'd suggest that you go back and read a lot of the postings on this forum to get a quick education.

    Good Investing**************Ron Starr***************

  • hibby7620th January, 2004

    (stay up late and find a "John Beck" commercial and you'll understand it a bit better)

    In a nutshell it works like this....

    Ask yourself this question. Where does your city get it's income to pay it's bills??? Taxes. Property taxes account for much of the local taxes. What if no one paid their taxes, what would happen? The city couldn't operate. So what do they do?

    If I don't pay my taxes, someone else can pay them for me. If they do so, I'll have to repay them with interest. In other words, they pay my taxes and recieve a tax lien (aka IOU + interest).

    If I never pay them, then they get to keep my property (free and clear of any mortgages)

    It varies from state to state, but that's the gist of it.

  • sharpREI_PA20th January, 2004

    Hey all...
    Thanks for the advice. I do remember now those infomercials I have been seeing the last couple years or so now you have mentioned it. I am thinking of getting the Beck Free and Clear course. Does anyone know how Tax Lien sales fair here in Pennsylvania or about them here at all? Thanks again

  • ipitsky2nd February, 2004

    you have to be carefull of the two tax. county and state tax are said to be in penn.

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