I love when I get checks in the mail from the tax collectors for the repayment of my tax liens. But what do you do when your assessment will not redeem, and the repayment period is over? This is something specific to the state because some states do not give much time to foreclose once the repayment period is longer. You may have only 6 months after the redemption period before the lien expires, in those states, you must start the application process foreclosure or deed immediately and hope for the best.
But in states where tax liens are longer periods of maturity, there are things you can do to maximize your return on investment and get paid when you want. Since investing in a state that has a repayment term of 2 years and a maturity period of 20 years, I can let my seizures go far beyond the amortization period and not worry about losing my investment, provided they pay the after taxes. In fact, the more that the lien back up and pay my taxes, I will make more money. But there comes a time when you have more money in the assessment that I have. I do not want the redemption amount to close to the value of the property, I do not want to be close to half the value of the property. I do not want to be more than 25 percent of what the property is worth.
So how do you know when it’s time to start the foreclosure of a property and the power of redemption, and how to know if the property goes to rescue or if you really get to foreclose on it? If a mortgage or a substantial interest in the property of others, other than the owner, it is probable that after rescuing the intention to foreclose sent notifications. The property owner was not able to pay taxes, and probably will not be able to redeem the lien. However, a mortgagee, once they have knowledge of a tax lien foreclosure, probably the most likely rescue the lien to protect its interests in the property. In the last 2 months I had three liens redeem. I have had two of these charges for over 7 years, one for 4 years and a little over 2 years. All 3 of these taxes redeemed, because he had a lawyer send letters of intent to exclude owners and all lien holders. And in each case was the mortgage company, not the landlord, who redeemed the lien.
Here are some reasons why you might want to start the foreclosure process to require the redemption of a tax lien, except for redemption amount more than 25 percent of the value of the property:
* You do not pay taxes for any reason after someone bought a tax lien on the property back and now its payback period is almost over. * You are concerned that the property owner may be going bankrupt.
* You need cash
But what if the expiration period has not yet completed and you need money and want to get the money from your investment? You can do that even though the payback period is not over? Can not send a letter of intent to foreclose if the redemption period has not yet finished, but you can send a notice of levy on holders of any lien on the property. If there is a mortgage on the property and were notified of the lien, there is a good chance that they will redeem. Another way to get your money from your investment before the repayment period is to sell or “give” their lien to another investor.
Remember that the laws are different in each state, so before you try any of these methods to ensure that you check the state statutes regarding the redemption of tax lien certificates, or consult with an attorney at law withholding taxes in your state. This article is for educational purposes and should not be taken as legal advice.