Tax Lien Assignments

[Helena L Drummond]

Hello All,  

I am a newbie with several questions. I have narrowed my investment interests to wholesaling, tax liens, and bank foreclosure auctions. In my learning, I understand the importance of focusing on "One Thing". I

I live in an area where the county has delinquent tax properties available for assignment. Does anyone have experience with this type of procurement? Is there a markedly different approach? What's the one thing I'd need to know about this method? 

[Ned Carey]

@Helena L Drummond in general tax liens are freely assignable. In your case it seems you are getting an assignment from the county of liens that didn't sell in the main auction.  As @John Underwood why were they passed up in the main auction to start with.  Baltimore city has an assignment list with 6,000 properties on it. You'd be lucky to find 6 worth buying. 

That is exactly how I got started. I went though the list and bought two liens, foreclosed, and both were home runs. I doubt I could do that today. It is more competitive and there is less good stuff that gets overlooked. 

The one thing to know is "Know what you are buying and what it is worth"  The next most important thing to know is the hidden costs.  There is the cost to foreclose and the cost of new taxes that come due after you buy the lien. 

Generally there is no negotiation. Pay the face value of the lien period. Often this is short sighted by the county or city but it is the usual stance.  It is possible to negotiate but it is rare

@Trisha Stevens

Bankruptcy stops the foreclosure process. In my area Maryland, my experience is very different that @Dennis Weber's. A bankruptcy can stop the foreclosure for multiple years. This can drive up your costs as taxes and municipal bills keep accruing. As Dennis said a bank gets wiped out in a tax foreclosure. However on nice properties the bank will normally redeem the property.