Tax Lien Property Sales:

What is a Tax Lien? How do you find tax lien property sales information? These are questions many real estate investors are asking in today’s economy. A recent study concludes that foreclosure filings jumped 42 percent nationwide in 2006, accelerating a trend that began in 2005 as home sales started to cool. Last year, 1,259,118 U.S. properties entered some stage of foreclosure, up from 850,000 properties in 2005 (Source: RealtyTrac research).

Mortgage payments aren’t the only bills falling behind; Notice of tax liens are at an all time high. Real estate taxes are just not getting paid, since most mortgage bills also include payment for real estate property taxes. In conclusion, as foreclosures numbers increase so will the number of delinquent real estate property taxes.

Unpaid property taxes create a serious cash flow problem for local governments. If local governments are unable to collect real estate property taxes, they are also unable to provide important government services like police protection, public schooling and medical services.

To solve this problem, local governments allow investors to pay off these taxes. In exchange, investors receive the government’s lien for property taxes.

Why would investors do this?

Depending on state laws and competition, investors can realize returns as high as;

• 16% per year in the state of Arizona (Sec. 42-18053),
  
• 18% per year in the state of Florida (Sec. 197.172 (2)),
  
• 20% per year in the state of Georgia (Sec 48-4-42) and
  
• 50% per year in the state of Texas (Sec. 34.21 e 2).
  

Everyone is happy, the county gets their money; the delinquent home owner gets more time to pay their already past-due property taxes and the investor gets a real estate secured, high yielding investment.

Where do you find notice of tax liens or tax lien listings? Well there are number of sources to go to but the best one which I have found to be accurate and informative is “Creating Wealth without Risk”
this downloadable book covers everything about tax liens and how to find and invest in tax lien listings. I personally have it a will recommend it to anyone serious about investing in tax lien properties.