With thousand of foreclosed properties flooding the real estate market, most homebuyers and real estate investors are familiar with foreclosures. But apart from mortgage foreclosures tax lien foreclosures are less talked about but are also a great investment opportunity with some unique features.
What are tax lien foreclosures?
While most properties are foreclosed due to defaulted mortgage payments, tax lien foreclosures on the other hand are different and relate to nonpayment of property taxes. When a homeowner doesn't pay his property taxes the government places tax lien on the property which gives it the authority to auction the house through the process known as tax lien foreclosures.
Tax foreclosures are sold at public auctions and anyone can buy the liens and earn good profits through the interests. When the homeowner finally comes forward and clears his tax dues the buyer of the tax lien foreclosures gets the investment amount as well as the interest accrued over the time period thereby making the whole venture highly profitable.
Important features of tax foreclosures:
• No eligibility criteria -- There aren't any eligibility or income limits for buying tax foreclosures and therefore anyone interested in making some profit in the real estate market can take the plunge.
• Low investment -- In contrast to most real estate investment which involve high investment costs, one can buy tax foreclosures at rates even lower than $1000 which makes it a good opportunity for first time real estate investors.
• Safe venture -- As you are dealing directly with the government buying tax foreclosures is a very safe venture and there are no risks involved on defaulting as there are no property issues at hand unlike other real estate ventures.
• High returns -- Most homeowners take a considerable amount of time to pay their tax dues to the government once their property has been foreclosed which results in a high profit return for the person who has bought the tax foreclosures as he gets his investment as well as the accrued interest.
• Direct purchasing -- Tax lien foreclosures are sold at auctions directly to the highest bidder. All local county offices contain information on upcoming properties to be auctioned off as tax foreclosures along with the venue and the dates. Information can be also easily accessed through online foreclosure listings, and newspaper classifieds.
What are tax lien foreclosures?
While most properties are foreclosed due to defaulted mortgage payments, tax lien foreclosures on the other hand are different and relate to nonpayment of property taxes. When a homeowner doesn't pay his property taxes the government places tax lien on the property which gives it the authority to auction the house through the process known as tax lien foreclosures.
Tax foreclosures are sold at public auctions and anyone can buy the liens and earn good profits through the interests. When the homeowner finally comes forward and clears his tax dues the buyer of the tax lien foreclosures gets the investment amount as well as the interest accrued over the time period thereby making the whole venture highly profitable.
Important features of tax foreclosures:
• No eligibility criteria -- There aren't any eligibility or income limits for buying tax foreclosures and therefore anyone interested in making some profit in the real estate market can take the plunge.
• Low investment -- In contrast to most real estate investment which involve high investment costs, one can buy tax foreclosures at rates even lower than $1000 which makes it a good opportunity for first time real estate investors.
• Safe venture -- As you are dealing directly with the government buying tax foreclosures is a very safe venture and there are no risks involved on defaulting as there are no property issues at hand unlike other real estate ventures.
• High returns -- Most homeowners take a considerable amount of time to pay their tax dues to the government once their property has been foreclosed which results in a high profit return for the person who has bought the tax foreclosures as he gets his investment as well as the accrued interest.
• Direct purchasing -- Tax lien foreclosures are sold at auctions directly to the highest bidder. All local county offices contain information on upcoming properties to be auctioned off as tax foreclosures along with the venue and the dates. Information can be also easily accessed through online foreclosure listings, and newspaper classifieds.
Melanie Hogeveen is an expert writer in the field of real estate especially foreclosures and has been doing research on foreclosures for the past several years. She is renowned for her advices and tips on buying foreclosures. For more details please visit Tax Lien Foreclosures.
Article Source: http://EzineArticles.com/?expert=Melanie_Hogeveen
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