How does an investor get a tax lien certificate?
Instead of bidding on an amount for the property, the interested parties bid on the interest rate they are willing to receive. The investor who bids the lowest rate wins the auction and is issued the tax lien certificate.
Can you invest in a tax lien auction?
Online tax lien auctions are a fantastic way to participate in the creation of tax lien certificates. When investing in tax liens, it’s important to know how to acquire your liens. Many options exist to give investors access to these certificates. Every state has specific rules governing the mechanism by which tax liens are created.
Is there an online tax lien auction in Florida?
After the application process is complete you are free to bid at any online auction in the county. Auctions dates vary, so check the local listings on the website. Florida is a state that is worth looking at for the online tax lien sales. The interest rate in Florida is 18% per year. Some counties in Florida do have online tax lien sales.
How long does it take to get a tax lien certificate?
Not all states, counties or municipalities offer tax liens. Some states, such as California, only perform tax sales on a defaulted property, resulting in the winning bidder becoming the legal owner of the property in question. The term of tax lien certificates typically ranges from one to three years.
What states have tax lien sales?
Tax lien states are Alabama, Arizona, Colorado, Florida, Illinois, Indiana, Iowa, Kentucky, Maryland, Mississippi, Missouri, Montana, Nebraska, New Jersey, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Vermont, West Virginia, and Wyoming.
What is a certificate of tax lien?
A tax lien certificate is a certificate of claim against a property that has a lien placed upon it as a result of unpaid property taxes. Tax lien certificates are generally sold to investors through an auction process.
What is an auction certificate?
The auction certificate is basically used to confirm the purchase of a certain item during an auction after heavy bidding. The certificate ensures that the auctioned item is reserved in the bidder’s name and he or she can be assured of its delivery in their name.
What is a tax lien?
A tax lien is a lien imposed by law upon a property to secure the payment of taxes. A tax lien may be imposed for delinquent taxes owed on real property or personal property, or as a result of failure to pay income taxes or other taxes.