Tax Lien Certificates

[Gail Arnold]

Hello, My name is Gail from Georgia. I am a newbie looking to purchase tax lien certificates out of state. I am looking to purchase online, because some of the tax lien certificate states are too far from me. My state is tax deed state. The reason I`m not sure if I want to purchase tax deeds due to the fact I would not want to get stuck with a non desirable property. My concern with purchasing tax lien certificates, is I would like to know if you are stuck with a certificate that has other liens on it such as bankruptcy or any other liens. Also how safe is it, and what is the work involved to purchase these tax lien certificates online. If any one can please help me with my concerns, it would be very much appreciated.

[Tom Yung]

@Gail Arnold

Buying tax lien in FL. Most good liens get bid down to under 5%. But if the owner redeems, you will get a penalty of 5% even if you bid less than 5%. After two years, you can apply for deed sale, But at the same time, you will have to pay off other lien holders. If nobody bids at the deed auction, you are the deed holder. Watch out for the homestead property. If the lien that you have; were homestead. The starting bid will be 50% of the assess value; NOT THE LIEN AMOUNT + INTEREST. 

Example below.

Outstanding lien amount $5000, interest & charges all included. Assess value $100,000. Starting bid will be $50,000. If no ones bid. You are the deed holder. You now need to pay out $45,000 to cover the difference. It is very unusual that no other bidders though.

FL lien has a 7 year life, if you do not or nobody else foreclose within the year 3 to year 7. Your lien is no good after year 7. Read FL statue197.

Georgia redemption right: after 1 year. You have to foreclose on the right of redemption. It will take a minimum of 45 days. After foreclosing right of redemption, you can wait out the 4 year of statue of limitation or you can clear title( same with FL).

Most GA deeds bid up to 80% of retail from what I observed from the last three sales that I attended this year.

Hope this helps