Tax Sales and Obtaining Tax Lien Certificates

[Spencer Herrick]

I'm beginning to learn more and more about tax lien certificates. Being new to real estate investing, I'm a bit unclear how they work, or more so, who's allowed to participate in them. I've noticed on my MLS that there are several forclosures. Would these be tax lien certificates purchased by real estate brokers? Can real estate brokers participate in tax sales? Also, how can I find out about properties that have tax liens against them before a tax sale.

Thanks!!!!

[Ned Carey]

Know the rules. Are you bidding interest rate down, price for the property up, when is the bid price due., do I own any thing other than the taxes the day of the auction? 

Know what you are bidding on. Often scrap pieces of worthless land are in the sale and they have no value. That is why no one has paid the taxes. Is there still a house on the property or did it collapse or burn down? Are  you bidding on someones house or just their driveway or garage?

Know the hidden costs. There are likely legal fees to foreclose, and subsequent taxes you need to pay to record your deed. Will you get free and clear Insurable title, or will you have the cost and time of a quiet title action/

Good luck.