After a period of time, if the property owner still refuses to pay their property taxes. The tax lien investor can actually force a sale of the property or in the case of states that issue tax deeds; they can actually take ownership of the property for as little as the cost of the initial tax lien.
Properties worth hundreds of thousands of dollars can be yours for only a few hundred or a few thousand dollars in back taxes.
Properties like spec homes or raw land agricultural property or even commercial properties worth millions. And believe it or not, it doesn’t take a mint to get started.
Tax liens are available for purchase for as little as $50 and up. There is any number of reasons why a property owner might fall delinquent on their property taxes: from legal disputes to poor business decisions to simply falling behind in today’s tough economy.
The important thing to remember is that tax lien investors come to the rescue to ensure county services are able to roll on. And remember by law a tax lien takes the first position on the property even ahead of any mortgage.
This means that unless the property owner redeems the tax lien within a specific period of time, known as the Redemption period. The investor can take control of the property completely wiping out the mortgage becoming the property owner for only the cost of the original tax lien.
As the holder of the tax lien, you now have the right to sell the property at full market value reaping a huge potential return on your investment legally and lawfully.