What Is Tax Lien Real Estate Investing

Invest In Tax Liens

Spending in tax liens with acquisitions at a tax obligation lien sale is just that-an investment. All Tax Obligation Sales in Colorado are conducted per CRS 39-11-101 thru 39-12-113 Complying with the tax lien sale, successful prospective buyers will certainly obtain a duplicate of the tax lien certification of purchase for each residential property. Spending in tax liens via acquisition at the tax obligation lien sale is just that, a financial investment.

How Does Investing In Tax Liens Work

When a homeowner drops behind in paying property tax obligations, the region or municipality might position tax obligation lien against the home. Rather of waiting for payment of tax obligations, governments often choose to market tax lien certificates to private financiers. Your earnings from a tax obligation lien investment will come from one of two sources: Either rate of interest payments and late costs paid by homeowners, or foreclosure on the property occasionally for as little as cents on the dollar.