Tax Lien Sale Process

[taxhour]

Registered users do not see advertisement

In a tax lien state, the lien is offered to prospective investors at public auction. Most auctions are held in person; however, Internet-based auctions (especially within large counties having numerous liens) are becoming popular.

In the event that more than one investor seeks the same lien, depending on state law the winner will be determined by one of five methods:

1. Bid Down the Interest. Under this method, the stated rate of return offered by the government is the maximum rate of return allowed. However, investors can accept lower rates of return, including zero percent in some cases (though this is rare in practice). The investor accepting the lowest rate of return is the winner. In the event more than one investor will accept the same lower rate, a random or rotational method (see below) will be used to break ties. (Florida and Arizona use this method)
2. Premium. Under this method, the investor willing to pay the highest "premium" (or excess above the lien amount) will be the winner. The premium may or may not earn interest, and may or may not be paid back to the investor upon redemption of the lien. (Colorado uses this method)
3. Random Selection. Under this method, a bidder will be randomly selected from those offering a bid. Usually a computer is used to make the selection, but in smaller jurisdictions more rudimentary methods may be used (Larry Loftis, a professional tax lien investor from Orlando, Florida and an author on the subject, mentions in his book of an Iowa county whose random selection method consisted of drawing numbered ping-pong balls from a fried chicken bucket).
4. Rotational Selection. Under this method, the first lien offered for sale will be offered to the investor holding bidder number one, who has the right of first refusal. If bidder number one refuses the lien, bidder number two may then bid. However, bidder number one will not be offered another lien until his number comes up again in the rotation. The next lien will go to the next number in line. Under this method, the investor has virtually no control over which liens s/he will obtain in the bidding, except to take or refuse what is offered.
5. Bid Down the Ownership. Used only in Iowa, the investor willing to purchase the lien for the lowest percent of encumbrance on the property will be awarded the lien. For example, a bidder may agree to take a lien on only 95% of the property. If the lien is redeemed, the investor would only receive 95% of the proceeds. In practice, few investors will bid on liens for less than full right to the property or sale proceeds. Therefore, with multiple owners bidding on 100% encumbrance, the process then generally reverts to the random selection.

Liens not sold at auction are considered "struck" (or sold) to the entity (usually the county) conducting the auction. Some states allow "over the counter" purchases of liens not sold at auction. However, in most instances the unsold liens are on marginal or worthless properties, the liens on better properties having been purchased at auction.

[taxforum]

not a question - remove from the not answered treads stack

[thines]

"ALL DONE FOR YOU" Property Tax Sales Buys Without A Margin.
Tax deed investing has now become very popular in many states. Unfortunately it can be very time consuming and costly if not adequately researched and a good handle on the process is not developed. taxsaledomination.com to the rescue.


FOR IMMEDIATE RELEASE
PRLog (Press Release) – Jul 12, 2010 – In a few short days a remarkable addition to the real estate investing community will be available to investors.

This offering promises to save investors huge chunks of time and money toward their investment efforts. This service is for investors,investing in the property tax defaulted arena.

Investing in tax deeds can be a very time consuming and sometimes complicated prospect for the new and seasoned investor, alike.

Taxsaledomination.com takes all the mystery out of the process and provides a premium membership with all the tools and resources one needs to be successful at investing in tax deeds. In addition there is also the flagship "ALL DONE FOR YOU" Service they are proud to offer, for those who value their time and want to leverage their resources.

This service is only available in Central Florida but plans are in the works to expand the service to the entire state. In the future taxsaledomination.com hopes to expand the service to other states through a network of affiliates that will service the area they reside in.

Right now the "All DONE FOR YOU" service is only available to members of the premium Membership and only to the first 50 who apply. In addition to celebrating the launch of this new service, the first 200 people who enroll will receive a free premium membership account for 1 full year. This is a $1200 value.

To get full details about this valuable offer, inquires should be made by visiting
http://taxsaledomination.com .

# # #

About TaxSaleDomination.com: Tax Sale Domination is a Division of ISP Inc a Florida Corporation. It provide business services Research, Marketing and Advertising.

--- end --- Visit Press Room