In order to buy a tax lien property you must first decide which states or counties are conducive to producing conditions that will allow you to end up in ownership. In addition you may want to consider purchasing tax deeds instead, as the process is set up in a way that gives you a better chance at property ownership.
A tax lien certificate is necessary before you can engage in purchasing tax lien properties. Bidding is one way to get it. Now, there are no hard and fast rules on bidding. Its rules and process of doing it may not be the same in China as it is in Australia.
However, certain characteristics of it remain to be the same – some bidding process requires you to bid lower or offer lesser interest than your competitor. By offering lesser interest, your chances of ownership will be increased because sellers would often look for the better, cheaper deals.
The important thing after all those process, after purchasing the tax lien property certificate, is the fact that you can eventually claim it through foreclosure. Again, there are no hard and fast rules regarding foreclosure however there is a certain period in which the foreclosure notice expires. Such redemption period is given to the original owner for him/her to pay the remaining debts and its duration can last for years.
IRS liens: IRS liens take precedence over any other lien on a piece of property. Once you find out the amount of the IRS lien, you may be able to speak with the IRS and negotiate how much they will accept to forgive the arrearage.
Tip: Make sure you get that in writing! Another little known fact is that after 10 years, unless the IRS renews the lien, the lien drops off their list.
Real estate liens: Those are the next on the priority list. Those must be satisfied. If you go to an auction and
The Real Estate Liens – This type of liens are a notch lower than IRS Liens because it requires you to bid on an auction and have certain conditions like:If the payment for the first mortgage is met all the preceding priorities would be removed from the list.
If you buy a second mortgage, then you have purchased everything above that on the priority list. You need to have completed your due diligence and know the lien priority.
Other Liens – This type of liens ranges from the following: Second Mortgage
Homeowner’s Association Fees
Mechanic’s Lien
Lawsuit
Judgment
All these other items go on the priority list by the date on which they were filed at the County Recorder’s Office.
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