Unique Content Article on tax lien basics,tax lien investing,buying tax liens online,buying tax liens,tax liens,tax deeds

Hints On Obtaining Tax Liens On-line

by Dale Poyser

Find out If Tax Lien Investing is Something you would enjoy

Even before you choose to become a tax lien investor, you should learn about the pros and cons

You must learn some of the common terms and procedures such as redemption period for the particular county, bid down the interest, bid on the premium, etc etc. Once you have a good understanding of the basics of tax lien investing, you need to decide if this type of investing is for you and suits your personality.

If you feel that being a tax lien investor is in your future, keep reading!

Find A Good Website For Purchasing Tax Liens

Finding a tax lien website is actually quite simple. Tax lien sales are done at the county level, not the state level. So you should start with the county website.

You could use the google search engine and enter terms like "buy tax liens in texas" or "counties in texas with tax lien sales." Replace texas with whatever state you are interested in. For example, if I wanted to invest in a county in Florida I would type in "Florida Tax Collector" in the Google search engine.

This step will give you a lot of results to filter through.

Sign up With some Tax Lien Websites

Note: You will only be able to register in certain counties as not all counties have online tax lien sales.

Be ready to fill in personal information about yourself such as your social security number, bank routing info or credit card info for funding and payment purchases, this is normal. You may also need to fund or provide funding for your account which will be used to purchase the Liens if you win a successful bid.

Understand how the Tax Lien Bidding process works

There are quite a few ways to bid during tax lien sales auctions. In the event that there is more than one tax lien investor one of several bidding methods are used.

Depending on the laws of the county, the bid winner will be determined by one of the five methods below. <b>Bid Down the Interest</b>.with this method, investors will bid against each other to see who will accept the lower interest rate. In some cases the interest rate can go as low as 0%, but this is rare.

<b>Premium.</b>With this method investors are fighting to see who will pay the most for the lien. In some counties the additional premium does not earn any interest and may not be refundable. Colorado is a state that uses the premium bid method.

<b>Random Selection.</b>With this method, a bidder will be selected randomly from all the bidders. In most cases a computer does the random selection but this can vary. Nevada is a state that uses Random selection.

<b>Rotational Selection.</b> With this method, the first lien will be offered to the investor holding bid ticket number one. If the first bidder passes on the lien, the next bid ticket holder gets priority of the lien. However, bidder number one will not be offered another lien until their ticket number comes up again in the rotation. The next lien then goes to the next number in line.

<b>Bid Down the Ownership.</b> This method is used in Iowa and a few other states, the investor willing to purchase the lien for the lowest percent of ownership on the property will be awarded the lien. An example of this would be a case where the winning bidder only owns 60% of a tax lien. If the lien is not redeemed, the bid winner only receives 85% ownership of the property with the remaining 15% owned by the original owner. In actuality, very few investors will bid on liens for less than full ownership to the property.

So in the even there are multiple bidders on the same tax lien, the random selection method will be used. If a tax lien is not purchased at an auction, the county will take possession of it. Some states allow "over the counter" purchases of liens not sold at auction.



To learn more about <a href='http://howtobuytaxliensnow.com/basics-buying-tax-lien-sale-pt1'>tax lien basics</a>, then visit Dale Poyser's website to learn<a href='http://howtobuytaxliensnow.com/'>how to buy tax liens online</a>.

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New Unique Article!

Title: Hints On Obtaining Tax Liens On-line
Author: Dale Poyser
Email: poyserdk@gmail.com
Keywords: tax lien basics,tax lien investing,buying tax liens online,buying tax liens,tax liens,tax deeds,real estate investing,real estate
Word Count: 689
Category: Entrepreneurs
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