Government Auctions for Tax Lien, Expired Tax Lien and Tax Deed Properties

Have you ever wondered what happens when someone does not pay their property taxes? The government has the power to foreclose homes and commercial property when taxes are not paid. It does sound like the ultimate nightmare for the homeowner, but it doesn't have to be. Let me explain.

County governments hold what is referred to as 'tax lien sale' which is a public auction where people can bid on these tax sales in lieu of the property. What this means is the public is bidding on the debt of the homeowner. In exchange for buying this tax lien and paying off the homeowner's debt, the homeowner will then pay the winner of the auction back, with interest, by the redemption date as predefined by the government. This redemption date can be a length of time between 6 months and 4 years and represents that date the homeowner must pay all taxes plus incurred interest and penalties to avoid being evicted from their property.

Now here's the catch for the homeowner. If they default on the loan terms then the lien purchaser (let's assume that is you) has the right to foreclose and take title of the property. So it is a 'win-win' situation so long as the homeowner continues to pay you, as the lien certificate owner, all loan payments. For you it is a good way to make a high interest rate while helping someone from losing their home.

Being the shroud business person that you are, however, you would actual prefer that the homeowner defaults on the lien loan terms and doesn't pay the amount owed by the redemption date so you can take control of the property. If they do default on your loan, don't feel bad as you tried to give them a second chance and you have actually cleared them of a debt they couldn't pay.

Does that sound like a sound investment? Well listen to this! When a tax lien is not sold at the government auction, then the government reluctantly becomes the loaner. This was a common occurance just a few years ago before the government leveraged Government Autions Sites (like this website) to increase access and awareness of these tax properties auctions. Because of this the goverment has a very large inventory of tax lien properties that have surpassed there redemption dates that are currently available for sale.

What this means to you is that since the original owner did not pay the loan by the redemption date, you can foreclose and take ownership of the property immediately simply by paying off the defaulted taxes and penalities. Often this amount can be less then $1000 or $2000. So if the property is valued at $200,000, well you can see the extraordinary opportunity here. For more information on these low risk, high return 'expired liens' investment visit Tax Lien Investor Secrets.

For many states rather then using outside investors to cover the defaulted taxes, the government conducts a forced property sale to cover the taxes owed. These are called property 'tax deed' auctions. Tax deeds are like expired tax lien sales, except that the property is auctioned off. Since many states are using the Tax Deed method as the primary means in retrieving the taxes and penalties outstanding there is a large selection of these properties as well. They are also often sold for as little as $400 to $2000. For more information on 'tax deeds' visit The Secret Certificate - Steal a House. What is so valuable about this site is that for a $1 charitable donation (not a lie; the owners of this site send all donations to registered charities) you'll see a 45 minute step-by-step training video that shows how to buy these homes for a few hundred bucks. You'll also receive a 7-day membership which includes access to their listing of all the 'tax deeds' properties in their database.

When visiting this site make sure you get to the third page of Steal a House because that page has a pre-training video that further explains tax deeds, and how to profit from them.

Remember with tax liens, expired tax liens and tax deeds all the government cares about is retrieving defaulted taxes so the local community can pay it's civil workers (teachers, police, town worker's, etc.) and continue to operate, so retreiving taxes takes precident over everything else even if it means selling a house for $500.

These are just a couple of ways that someone can profit at government auctions. Tax lien sales and tax deed sales can be a life-saver, or a death-sentence for the homeowner. Either way, homeowners are given ample opportunity to pay their taxes, and failure to do so, creates a profitable opportunity for someone else.

As mentioned above for more information and lists on property tax lien and expired tax liens opportunities go to Tax Lien Investor Secrets or for more information on and list of local government property tax deeds visit The Secret Certificate - Steal a House.