One of the more important determining factors when one
is trying to choose a state in which to buy tax lien certificates online is the
rate of interest offered in the state, and the bidding method at the auction.
You see, some states offer very high interests rates, like Iowa’s 24%. However,
the bidding process at auction brings these interest rates down because bidding
requires that you “bid down” on interest, with the winner of the auction being
the investor willing to accept the lowest interest rate.
In Lyon County, Iowa, though, that is not how it works.
Investors will still “bid down” at the auction – but not on the interest rate
attached to the home lien (tax lien certificate). Instead, the winner of the
auction will be the investor willing to accept the lowest percentage of the
property, should the certificate go unredeemed and the foreclosure process
started.
In Lyon County, Iowa, the tax sale (tax lien certificate
auction) is held the third Monday in June, and requires investors pay a $25
registration fee by the Friday before the auction. Individuals who win auctions
for tax lien certificates will be eligible to purchase subsequent tax liens on
the property one month and 14 days after said taxes become delinquent. Many
investors choose to purchase subsequent delinquent taxes on parcels of land for
which they hold tax lien certificates to keep competing investors from
purchasing the liens and possibly foreclosing on the property.
After 1 year and 9 months of the purchase of the tax
lien certificate, a petition may be filed to gain ownership of the percentage
of the property bid on at the auction. Basically, if you were willing to accept
6% of the property should it go into foreclosure, after 1 year and 9 months you
can foreclose and take control of your 6%. The property owner, however, would
still be the majority holder.
Even with all the proof of how tax lien certificate
investing is safe and lucrative, many people don’t know how to begin to invest.
Some are unaware that you can begin with less money than you’d think. Would you
like to know the truth about this 100 year old process? Go to: http://www.tedthomas.com/truth-about-tax-lien-certificates/
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