Tax Lien Sales: Elderly are Losing Homes While Investors Reap Big Profits

Every state across the United States has residents who are losing their homes to tax liens. This problem seems to be affecting the elderly more than any other class of people, and they have to sell property fast. Texas is one such state that is finding that the elderly must sell house fast, and this is hard to do in the present economy and does not always work out. To sell property fast in Texas generally finds no other option.

In order to sell house fast Texas is one state that does offer certificate sales for tax liens. However, Texas does off tax deed sales. The percentage is 25 for the first months on deed properties, when the owner redeems them. If a Texas resident’s property is sold a tax deed sale, they will have six months to pay these taxes before the person can obtain a title free and clear. Taking into consideration all states in the United States, Texas has the best sales for tax deeds, to sell your house fast.

When there is a tax deed sale it is the sheriffs or a private law firm who handle this process. To be able tosell your house fast Texas rule of thumb is, if you pay the tax lien off, you are giving the property owner six months to come up with the past tax money and if they are able to do this, and redeem their property, you still reap in a 25 percent profit on your initial investment.

So what is the difference between a tax lien and a tax deed?
A tax lien is placed against an owner’s property when they neglect to pay either federal or state taxes. Big real-estate investors are always looking at making quick money, and the people who suffer especially hard are the elderly. Investors feel that this is a win situation for everyone involved. Things to be aware of is that each state is different, such as in Texas.

Possible earnings on a tax lien should be predetermined before going forward. In a tax lien situation the investor pays for all delinquent taxes for the property owner. In turn the owner has six months to come up with money to pay these taxes. If they cannot get this money then the investor is given the first lien on the title and this lien will have priority over all other property liens.