Pay Someone Elses Taxes

Pay Someone Else's Taxes
Did you​ know that you​ could make money by paying someone else's property taxes? Thirty-one states provide a​ little-known investment opportunity that might be perfect for you.
You could even see an​ annual interest return from 18% to​ 50%.
The returns are available through tax lien and tax deed certificates sold by the​ county .​
Tax liens are placed on​ a​ property when the​ real estate taxes are late .​
Many local governments auction the​ liens off to​ investors once or​ twice a​ year as​ a​ way to​ get their owed money .​
These are called tax sales.
For example,​ if​ Mr .​
Jones owes $2,​000 in​ real estate taxes and hasn't paid it,​ the​ county will place a​ lien on​ his property .​
Eventually the​ lien will be auctioned to​ an​ investor .​
The investor may get the​ lien for $2,​000 .​
The county gets the​ money it​ needs right then .​
The treasury or​ finance department will start going after the​ money from the​ delinquent tax payer .​
They send nasty little notes,​ warning them of​ future actions .​
They charge penalties and interest rates of​ up to​ 50% .​
The local government can then turn around and pay the​ investor a​ large return.
You can find these investment opportunities through your local treasury or​ finance department .​
There are also many websites that keep the​ information in​ an​ up-to-date compilation .​
You may have to​ pay for the​ information .​
The best way is​ to​ contact your local department instead of​ paying for a​ national service.
These are short-term investment opportunities .​
After the​ lien has been auctioned off,​ the​ county lets the​ owner know that they might lose their property to​ the​ lien certificate holder if​ they don't pay the​ taxes,​ interest and penalties .​
This gives the​ owner another chance to​ pay the​ bill and keep the​ property .​
If they don't pay,​ the​ lien certificate holder can foreclose on​ the​ property.
In some areas,​ the​ government will forego the​ investment opportunity and outright sell the​ tax deed to​ the​ property .​
This means if​ they don't pay the​ taxes,​ you​ are the​ owner of​ the​ property straight out.
There are many stories about making a​ lot of​ money buying tax deeds .​
a​ man in​ Oklahoma is​ rumored to​ have bought land for $17 at​ a​ tax sale only to​ sell it​ for $4,​400.
Some people have been lucky,​ but there are risks and hazards with tax certificates .​
The property could be trashed,​ you​ could lose your money if​ you​ don't follow the​ proper procedures,​ the​ title could be clouded,​ and the​ former owners might be irate and armed with ammunition.
Due to​ the​ auction property,​ a​ nice property might only be available with some not-so-nice terms attached .​
You might win the​ property only to​ then be responsible for all the​ unpaid taxes and mortgages .​
If you​ have to​ foreclose,​ you​ may have a​ lot of​ costs come up .​
The owner might be able to​ invoke the​ equity of​ redemption right that allows him or​ her to​ re-acquire the​ property after a​ foreclosure.
Make sure that you​ know all of​ the​ risks before you​ jump into tax sales .​
Research the​ properties,​ which are usually listed in​ the​ local newspaper a​ few weeks before the​ sale .​
Have a​ thorough understanding of​ your potential obligations,​ know what the​ rules are,​ speak with your attorney and realize that your best plans may not work out.
Ninety-eight percent of​ impacted property owners will pay their taxes .​
Most of​ the​ investors into these certificates make money on​ the​ interest paid on​ the​ tax bill.
Pay Someone Elses Taxes Pay Someone Elses Taxes Reviewed by Henda Yesti on June 26, 2018 Rating: 5

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