"The important thing in science is not so much to obtain new facts as to discover new ways of thinking about them."William Bragg
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Kansas Real Estate - The Middle of the Country
Located in the exact middle of the country, Kansas is an agricultural state where you can escape the rat race. Kansas real estate is inexpensive and plentiful. Kansas Kansas is about as Midwestern as it gets when you think of stereotypes. Agriculture ...
No Real Estate Bubble Bust Yet
The Nation's hot real estate housing market bubble is not bursting, but is experiencing a flattening effect after three strong years of appreciation, according to a survey of real estate markets throughout America. "Everybody can't be Donald Trump," said ...
Quo Vadis Real Estate Agents' Websites?
From the outset, there is no doubt that there will be a substantial increase in the use of the internet by all participants in the real estate process. Currently, you can search for properties to buy, sell, permanently rent or holiday rent. You can also ...
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Gather around children for a tale of royal power. Far back in history the king owned everything. (Does that remind you of Donald Trump?). Occasionally the king would grant property to a duke. Property ownership meant wealth, so the king would demand that the duke pay yearly taxes. To this very day much of the money that supports government comes from property taxes, for you see children, government is still king.
If the property owner fails to pay the tax the county government places a lien on that property. Every year property tax liens are sold at auction to the highest bidder. If the property owner fails to satisfy that tax lien the new owner of the lien can begin foreclosure and acquire the property. That seldom happens, but it is possible. Usually the liens are redeemed (paid) before the time limit expires.
You've probably seen the TV infomercial extolling the benefits of buying property tax liens. It's true, property tax liens usually pay an above average rate of interest (it varies from state to state) and the lien is secured by some kind of real estate. Because of the infomercial and real estate seminars, tax lien investing has became very popular. There was a time in some counties when few people would show up at the property tax lien auction. These days the seminar gurus often arrive with bus loads of students ready to bid.
A good investment, yes, but there are some surprises for the uninformed. Because property tax sales occur each year, there may be liens on the same property, for different tax years held by different investors. Like this... Bill bought the 1980 lien; Hillary bought the 1981 lien and George was the successful bidder the next year when the 1982 liens were offered.
Here in Arizona the law is very clear that tax liens for different tax years held by different private parties have parity among themselves. So if the redemption period for Bill's 1980 tax lien had expired without being paid he could foreclose on the property, but his foreclosure would not wipeout the liens held by Hillary and George. Bill might have a right to the property, but he could not get clear title until he pays off Hillary and George.
If Hillary and George had been influenced by that infomercial and thought that they could scoop up ownership of property for the simple price of a tax lien, well they are more than a little disappointed.
Oh, there could be one more surprise. Sometimes the state owns tax liens. When the state government forecloses all other privately held property tax liens are turned into waste paper.
Property tax liens certainly can be a good investment if you always keep one fact one mind... You are the duke and the government is the king!
About the author:
Markk Walters is an investor and manager of the Real Estate Investor Base Camp at http://www.CashFlowInstitute.com
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Real estate spotlight, May 25, 2012Seattle Post IntelligencerBy AUBREY COHEN, SEATTLEPI.COM STAFF Is your dream to live on Lake Washington? How about in this home, 8750 Sand Point Way NE, listed for $3.395 million? The 6200-square-foot house has five bedrooms and 4.5 bathrooms, including a master suite with a ... |
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