As of the time that I am writing this text there are solely eight states which have which have online tax lien gross sales. However a few of these states might solely have one or two counties or municipalities with online tax sale. For that, and for different causes that I will let you recognize about later, these tax gross sales might not be value your time. So listed here are what I take into account to the be the highest 5 states for investing in tax liens online:
Florida is a state that’s value for the online tax lien gross sales. The curiosity rate in Florida is 18% per yr. Most counties in Florida do have online tax lien gross sales. Tax Gross sales are held annually in Could and the curiosity rate is bid down fairly low, however there’s a minimal 5% penalty, so no matter how low you bid, if the lien redeems you’ll get not less than 5% in your cash. One other plus for buyers who don’t reside within the state is that as long as you do your due diligence and bid on good properties you aren’t more likely to get the property. As a substitute of foreclosing on the property if the lien does not redeem, in Florida you apply for the lien to go to a deed sale. The property will then be auctioned off in a tax deed sale (a few of these are online as properly) to fulfill the lien payroll Services.
One other state that has a default curiosity rate of 18% per yr is Maryland, and whereas not many counties within the state of Maryland have online tax gross sales, the Metropolis of Baltimore does have a really giant online tax lien sale annually. In Maryland the curiosity rate is just not bid down, as a substitute of bidding down the curiosity rate, premium is paid for tax liens. You shouldn’t have to pay the complete premium on the tax sale. You solely have to pay a portion of the premium together with the quantity of the lien on the tax sale. And provided that the lien doesn’t redeem and also you foreclose on the property, do you need to pay the remaining premium (and any excellent taxes). The Maryland counties have a considerably difficult means of figuring out how a lot of the premium must be paid on the tax sale (this is named “excessive bid premium”) and you must be sure to perceive this earlier than you bid in any of the Maryland tax gross sales. There’s a detailed description of the components for prime bid premium within the Shopping for Tax Liens Online course. One other plus for the investor in Maryland is that the redemption interval is brief – solely 6 months in most counties.
Indiana is one other state the place premium is bid for tax liens and there are a handful of counties in Indiana that do have online tax gross sales. There’s a 10-15% penalty paid on the certificates quantity relying on when the lien is redeemed and 10% curiosity per yr is paid on the premium quantity and all subsequent tax funds. Not all of those tax gross sales are the common tax lien gross sales, a few of them are the county commissioner’s tax certificates gross sales. These are the gross sales of the liens that didn’t promote within the common tax lien sale. What’s good concerning the commissioner’s gross sales is that the quantity of the lien is typically lowered and the redemption interval can also be lowered to solely 120 days as a substitute of 1 yr.