Website design By BotEap.comIn tax lien certificate investing, there are many different strategies that an investor can take. And many factors come into play. Are you only going to research and invest in local counties, or will you invest in multiple areas and states? Planning to travel to tax sales, or looking for counties and municipalities that offer first-executed or expired property tax lien certificates online or by mail? How much time per week do you plan to spend investing in tax bonds? What is your budget or amount of funds available?

Website design By BotEap.comOnce you answer the questions above, you’ll have a better idea of ​​which states and counties you’ll want to invest in. Once you get to your states and counties, you’ll want to address the following questions:

• When are property taxes due and when are they delinquent? In most states, property taxes are paid once or twice a year. Unpaid property taxes become delinquent a few months later. Once property taxes are delinquent, the property is subject to a tax lien. It’s important to know your state’s “delinquency” dates for at least two reasons: first, a tax lien sale often follows shortly after the delinquency date; second, counties will compile a list of delinquent properties and make it publicly available. Some of these lists are offered for free online. Other counties require investors to submit a written request and charge a small listing fee. Other counties only submit their list to a local newspaper for publication three to four weeks before the tax lien sale.
• When are the sales? Most counties have only one tax lien sale per year and it occurs around the same time each year. Some larger counties will have sales more frequently. It is also important to know if the county will hold the sale for more than one day.
• Are the sales in person or is there an online auction? Most tax lien sales require the investor to attend in person. Several Florida and Arizona counties offer online tax sales, including Maricopa County in the Phoenix area.
• Are allowance purchase OTC (over the counter) sales available? In many US counties, tax lien certificates that are not sold at initial or subsequent tax sales are available for assignment or purchase without a prescription.
• Can you buy OTC links online? Many counties offer investors the opportunity to purchase OTC bonds online.
• Can you buy OTC links with credit? Many counties are looking to get rid of their inventory of battered properties as soon as possible, and offering a credit option can speed up this process, since not all investors have enough capital.
• How long is the redemption period? The redemption period begins on the day the tax lien is first offered for sale. As of this date, the current owner of the property has a certain amount of time to redeem the tax lien before the property becomes vulnerable to the foreclosure process.
• Does the current owner of the tax lien certificate have first rights to subsequent property taxes? In most states and counties, the current holder of the tax lien certificate has first rights on all subsequent property taxes until the property owner redeems the tax lien certificate.
• Does the county want/need to be actively involved in the foreclosure process? In most counties, the tax lien certificate holder is responsible for initiating the foreclosure process after the redemption period expires, but there are exceptions.
• What should I know about the foreclosure process? Things to consider are the length of the process, what type of deed is granted after a successful foreclosure, and what the roadblocks (if any) are between getting a clear title and title insurance.

Website design By BotEap.comIn short, you first need to decide your target states and counties. Once this is determined, you should do extensive research in each state and county, using the questions above as a model. You can find much of this information online. Simply enter the county, state, and “property tax.” Most of the time, you will be directed to the County Treasurer, County Assessor, or Tax Collector section of the county website. The more information you have about a county, the more empowered you will feel.