Perhaps you live in a tax deed state, or, for anything reason, you just can't make it to any tax lien sales. No worries, you can still be a tax lien investor from the ease of your own home. This is made inherent through over-the-counter sales or assignment purchases. Most states have a law in place to sell the tax lien certificates that are left over after the each year tax sale.
This is a great occasion for you to invest your money all over the country without ever having to voyage to the actual location in which you are investing. With over-the-counter tax lien certificates, you are getting the best of both worlds: the bidding competition is eliminated so you will get the maximum interest rate, and you are buying these liens at the bottom inherent price. In fact, in some cases, you may get a tax lien certificate for less than the minimum bid price that it was offered at the auction.
Loudoun County Property Tax Rate
In order to get started, you will need to know each county's process for selling properties in their list after the tax sale, and how to get a list of these properties. Many counties wish that you send an "Assignment Purchase" form letter or other type of application form letting the county know who you are and what information you are looking for. Some county Web sites will list the county's post tax sales process, and some states even allow you to download current property list lists for free. The cost of assignment buy lists in other counties can vary anywhere from to about .
Calling a county directly for information is not always the best strategy. You won't always be able to reach the man (such as the County Treasurer or Tax Collector) you need to talk to, and the man you do talk to is not guaranteed to furnish the answers you are looking for. By sending a formal letter instead, it is more likely than you will get complete, literal, information from the literal, person.
Buying tax liens over the counter gives you a ample occasion to reduce, or even eliminate the redemption period. In many situations, the properties have been in county list for a lengthy amount of time and are approaching, or even past the redemption period. This means that you will be able to foreclose on the property immediately or much sooner than if you had purchased the lien at an auction.
So, with this investing strategy, the tax lien certificate investor has the following advantages:
you buy the tax lien certificate at the bottom inherent price, sometimes even lower than the original minimum bid;
you get the top inherent interest rate;
you don't have to wait for an auction to start investing your money;
you can invest when it is convenient for you, or when you have the capital available;
you can spend as much time as you need to research the properties you are curious in, and won't feel rushed because a sale is advent up.
Finally, something else to keep in mind -- just because a property didn't sell at the tax lien auction, it doesn't mean that the properties on the assignment buy lists are not worth looking at. There are roughly always a few gems to be found, and it is without fail worth trying to find these gems.
Buying Tax Lien Certificates Without Leaving Your Home