Buying Mansions for $10,000 through Liens? Harabourough county?

[Greg P.]

Hello, sorry if I'm spelling the county name wrong, but I read a article earlier this week (sorry I can't find it anymore) about a group of investors buying liens and association liens to buy properties for literally pennies on the dollar. I can't fathom this because we can't do it here where I live. Please advise.

[Ann Bellamy]

It sounds as if they are talking about buying tax liens. The Municipality that collects property taxes liens the property if the taxes aren't paid. If they need the revenue, they will sometimes sell the liens to investors. The investors collect the interest and can foreclose on the property subject to state laws.

Or sometimes, depending on state laws, the municipality forecloses on the property for back taxes, and then sells the deed.

There is a category here on BP about cash flows that includes tax lien info, and you can do a google search for tax liens and get lots of information. Then research the laws in your state to see if the strategy is feasible in your locale.

It's very state specific. For example, in New Hampshire, there is a statute that requires that the property can only go back to the government, not to a 3rd party.