Tax Lien Certificate & Tax Deeds - Your Top 10 Questions Answered

By: Ted Thomas Click author's name for more of his/her articles

In my experience of coaching and teaching thousands of people how to buy tax lien certificates and tax deeds, I've accumulated a lot of questions. Sometimes this topic can be a bit confusing, mainly because the whole process of tax lien certificates and tax deeds are run by the local state and county governments and each one has their own distinct rules and regulations.

Hence, I've decided to share with you the top 10 questions I've received in order to give you some insight into why buying tax lien and tax deeds is a predictable, certain and secure investment for you. The main reason is because the government issues these certificates by the hundreds of thousands on properties that have delinquent, unpaid property taxes. After you raise your hand at an auction to buy a certificate, you then go home and put your certificate in your safety box. That certificate will earn high rates. With this investment, you get all your money back, plus the high-rate return, and you buy the tax lien from the Government and the Government gives you the right to receive all your money back. You have the priority on the property when you own a tax lien certificate. You either get paid, or you get the property. Here are your top ten questions answered:

1. Who can buy a tax lien? Anyone who has the cash to pay the auctioneer.

2. Will I be evicting someone from their house? No, you are only paying that property owner's delinquent taxes. You are not foreclosing on them.

3. Will I own the property at some future date? It could be possible, although it's really rare for a property owner to forfeit their property. In Arizona, for example, 99% of all property owners pay (redeem) the taxes due to the county, when the property owner pays the taxes. The county in turn pays you interest plus a high rate of return. Nationwide, 95% of all tax lien certificates sold are paid (redeemed) by the property owner.

4. Why don't people pay their taxes? - People die and no family member or heir pays the tax. - People run out of money — they become unemployed and have money problems. - Some people won't part with their money until the last minute. They are making more by investing elsewhere.

5. Isn't the county or municipality required or obligated to find the property owner? Yes, they send multiple notices via registered/certified mail, and put announcements in the newspapers.That's what the law requires.

6. What if the property owner dies? The county will forward tax notices to the last-known address. Then the in addition will promote the tax sale list. Often, heirs or family members step forward to pay the taxes.

7. How many tax lien certificates can I acquire? There's no restriction. You can bid and purchase as many as your finances will allow.

8. Whom do I pay? You will give your money to the local county government — there are no brokers or intermediaries to pay. 9. Who will pay me my return? The property owner pays the county their delinquent taxes. The municipality or the county government that collected from the delinquent property owner will get in touch with you to then return your tax lien certificate. Upon receipt they will send you a government check.

10.Will I have to contact the homeowners at any time? No! In almost all instances you only do business with the local county or municipality.

Article Source: ABC Article Directory

About The Author: Ted Thomas is America's Tax Deed and Tax Lean Authority. He has trained thousands of proefessionals and newcomers to make profits by buying Tax Lien Certificates and Tax Deeds at government sponsored auctions. Discover the safest, most lucrative investment opportunity in America today by claiming your incredible free offer of wealth materials - incrediblefreetaxlienoffer.com