How To Purchase Tax Liens
Qualified tax consultants have vast experience in the tax system in the country, therefore, they are well informed on how to purchase tax liens. A tax lien is generally an auction sale of the assets of an individual who fails to service his loans. Tax liens are also known as tax certificate sale and they are carried out generally once a year by the county. The sale of the assets is made so as to recover the debts from a delinquent tax payer. The following are tips on how to purchase tax liens.
- Understand the sale that you are attending. The first tip on how to purchase tax liens is establishing the rules and regulations governing the sale. Different counties have varying guidelines to be followed as you purchase tax liens. You should therefore, familiarize yourself with the various tax laws in the county and also establish the amount of money you will need to pay in advance before you purchase tax liens. You also need to find out the length of time that you will be expected to wait until the properties are delivered.
- Search and register for a tax lien sale. You should search through different mediums such as newspapers from different states so as to find a sale where you can purchase tax liens. You will then be required to contact the county officials who are in charge of the sale and register for it. You will be expected to pay a certain amount in order for your application to be granted.
- Research about the property. This tip on how to purchase tax liens requires that you should carry out a preliminary research about the property before going to purchase tax liens, so as to discover the various liabilities that it may be having. It is important to find out if the property is involved in lien from another county, which might make your purchase null and void.
- Attend the lien and make your bid. You should then go to the actual auction to purchase tax liens. You will be required to make a bid for the property that is higher than the other people in order to be granted ownership. This last tip on how to purchase tax liens also requires you to make an arrangement on the payment methods that you will use, which should be accepted by the seller of the property and then you will wait for it to be transferred to you.