What are they?
A tax lien is a negotiable instrument created by a taxing authority when a property owner fails to pay their property taxes and/or municipal assessments such as sewer or water. The taxing authority places a lien on the property and sells a tax lien certificate at public auction or through a negotiated sale. The tax certificate is a first priority lien, superior to mortgages and all judgments except those of the United States government. .
The purchaser of a tax lien certificate will earn income on his investment in one of three ways:
The vast majority of tax liens are repaid with interest.
Why are they a good investment?
Investing in tax liens can be misconstrued to be socially irresponsible, however, when considering the benefits to both the property owner and the taxing jurisdiction, quite the opposite can be said. The property owner benefits from having additional time to repay the debt before foreclosure proceedings begin. The taxing jurisdiction which was owed the taxes benefits by being able to collect on the liens without incurring the expenses of foreclosure proceedings.
When properly approached, Tax Lien Certificates are a safe investment because:
Let our experience work for you...
Tax lien investing is not entirely risk-free. The inherent risks include improper filing, poor portfolio management and bankruptcy of the property owner. Our experience can help you to reduce those risks or avoid them altogether. Tax Lien Advisors, LLC has the skills to guide you every step of the way from selection to collection.