Tax Liens and Deeds

What are Tax Lien Certificates or “TLC’s”?

Let’s start by understanding what a Tax Lien is. A Tax Lien is a lien that the county has put on a Parcel for the reason of delinquent taxes. The County then publishes a “List” of all delinquent taxes on similarities in that county. The County then sets a time and place where the Tax sale will be held with all information about what to bring along with any and all fees that you will be required to pay. On the day of the sale the Treasurer for that county usually does all the auctioning and if you decide to buy one of the “TLC’s” then you would become an Investor in Tax Lien Certificates in addition as the “First position” lien holder of that parcel. Now their isn’t a lot to becoming an investor in TLC’s, you just need to understand that there are only 2 situations that can take place, 1st being that once you put up your money you are guaranteed the percentage of that county in return along with your initial investment and if the home owners don’t come in to the county and pay their back taxes up to date by a certain date then the 2nd would apply and that is “YOU” would become the new home owner with no “encumbrances” or no mortgage or other liens.There is a course of action to doing this kind of investing and it is very simple. If your worried about “Risk”, well there isn’t any more risk to buying “TLC’s” than buying a home from your local Realtor. All I can say is, This kind of investing is not only “Fun” but extremely “Rewarding.

Who can buy Tax Lien Certificates?

Anyone really, as long as you are at the minimum 18 years old with a valid ID. You don’t have to live in the U.S.A. either, a lot of investors are from foreign countries and you can do a lot of your investing over the internet if that County offers that as an option. This kind of investing really is “Outside” the box and the best part about it, it was all set up this way by our “Founding Fathers” and it is nevertheless in practice to this day. The other neat thing about all of this is your not limited to only one “TLC” per month or anything, you can buy as many as you can provide or choose to do one per month or do it however you want and you won’t have some broker calling you telling you that you need to give him more money because the market just fell out the bottom, this kind of investing doesn’t depend on how good or bad the “Market does or how much money the “FEDS” are printing, it has to do with “Counties need their money “Now” to pay their staff and work force and if character Taxes aren’t paid on time then you and I can help them and we get the interest and penalties with our initial investment paid back to us when the homeowner walks in and pays the county and if they don’t, well you just got a “New” house with some character to boot. What a “DEAL”.

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