Tax Lien Investor Questions for the Tax Collector
Dear Investor,
One of the top ways that investors lose money when investing in tax lien certificates is not understand the rules of the sale. Use the questions below to make certain you do understand the rules of the sale and make great returns by investing in tax lien certificates. With tax lien certificates you have collateral (the property itself) backing up your investment. If you don't earn your interest or penalty on the certificate (no redemption) then you get the property. Folks, it doesn't get much better than that!
CALL, WRITE, OR MEET THE TAX COLLECTOR AND ASK THE FOLLOWING:
1.Is there a date scheduled for your next tax lien auction? How many sales are scheduled?
2.Where and when will the auction be advertised? What time does the sale begin?
3.How do I get a list of the liens available at that sale?
4.Where will the sale be held? How do I register for the sale?
5.What types of payment do you require and when?
6.Do you require a deposit at the auction or before?
7.Does the county require payment in full after the sale?
8.What is the bidding process?
9.Can I have someone bid for me at the sale?
10.Can I bid via mail or phone or fax?
11.What document do you give the successful bidder?
12.Do I need to record the tax lien certificate or do you do that for me?
13.Do I have the right to pay subsequent taxes? If so, do you send me the tax bill?
14.Do you have any statistics on redemption rates of various types of properties?
15.How is foreclosure of the lien handled in your county – will the county handle it for me?
16.If the county handles the foreclosure, what is the cost?
17.Does the county have a website for tax lien sales?
Over-the-Counter Liens (OTC):
1.What happens to liens that do not sell at the sale?
2.Can these liens be purchased from the county after the sale?
3.Can I buy these liens by mail, fax, or phone, or does it have to be done in person?
4.Are there liens I can buy over the counter right now?
5.How do I get a list of them?
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