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MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
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spinoff to: foreclosure question
has anyone put money into tax lein certificates?
did you get the house?
did you just get your money back?
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Posted 3/28/07 2:57 PM  |
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kerrycec03
Mom of 2 beautiful boys!!
Member since 6/06 13519 total posts
Name:
Kerry
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Re: spinoff to: foreclosure question
no, what exactly is that?
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| Posted 3/28/07 3:11 PM |
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MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
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Re: spinoff to: foreclosure question
it's when a homeowner doesn't pay their taxes, the gov't puts a lein on the property.
the gov't in in business of raising taxes, not owning houses... so instead of seizing the property, they put the lein on and then they auction off the leins. kind of like a foreclosure auction. but the owner can stay in the house, since they are paying their lender/already own the house.
the bidding is on the interest rate of said tax. so if you win, you pay the homeowners tax bill, but now the homeowner ows you. similiar to when your lender sells your mortgage.
you can make up to 20% on your money. and in some states you have "first dibs" on the property.
i've done a lot of research on it, but have never found the nerve to do it. was hoping to start this year.
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| Posted 3/28/07 3:33 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: spinoff to: foreclosure question
sounds good in theroy- but if they can't pay there taxes- what makes you think they can pay you?
so I guess my question is what happens if they don't pay? are you out the money? do they have to sell the house and pay you?
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| Posted 3/28/07 4:11 PM |
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MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
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Re: spinoff to: foreclosure question
Posted by Beth1210
sounds good in theroy- but if they can't pay there taxes- what makes you think they can pay you?
so I guess my question is what happens if they don't pay? are you out the money? do they have to sell the house and pay you?
depending on the state, you can take ownership of the property for the amount of their back taxes. i don't off-hand remember what happens in the states where you can't own the property (i live in a state where you become the owner of said property)
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| Posted 3/28/07 4:14 PM |
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DRMom
Two in Blue
Member since 5/05 20223 total posts
Name:
Melissa
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Re: spinoff to: foreclosure question
Financially and morally I have aversions to this idea. What if someone was sick and couldn't afford to pay their taxes??
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| Posted 3/28/07 4:25 PM |
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MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
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Re: spinoff to: foreclosure question
Posted by melijane
Financially and morally I have aversions to this idea. What if someone was sick and couldn't afford to pay their taxes??
the government does give you time to pay your taxes. even after the auction, you have THREE years to pay the amount off. it's not like i put in a bid and immediately take your home from you.
besides, if you got sick and couldn't pay your mortgage, the lender would take your house. the government can do the same if they are owed money.
the bidder is there to buy the home-owner some time to pay it off.
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| Posted 3/28/07 4:31 PM |
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