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Newest strategies reveal how tax liens take priority
Over other financial encumbrances on property a tax lien sets aside mortgages
Liens and other financial encumbrances on property the new strategies revealed
Enable the lien holder greater control in the tumultuous investment environment
In most cases the real property tax is superior
To all other liens and financial encumbrances on real estate in all 50 states
This means the property tax debt must be paid off before anything else
Said Ted Thomas an expert in investing in tax lien certificates and mortgage free
Tax deeds he provided this example
A property owner has a mortgage and does some home repair the owner then gets
Into a financial bind and cannot pay the property taxes the mortgage
The mortgage and the bill to the construction company the mortgage is already
Recorded as a financial lien on the property the construction company can file
A workman’s lien against the property this is a second debt on the property
Mr. Thomas said when the property taxes go unpaid and become past due
The government then files a tax lien against the property
Because this is a government lien usually this encumbrance goes immediately to the top
Of the list the mortgage and the construction company claims are not eliminated but are
Subservient to the property tax claim buying the tax lien certificate
At a tax lien auction puts you at the head of the queue to be paid if the tax defaulted
Property is then sold at a tax deed auction Mr. Thomas explained
The property simply cannot be sold for less than what’s owed on the taxes
Plus the interest and fees but it could be sold for more he gave this
Further example a house has a $5,000 tax lien recorded against it and the
Tax lien certificate is purchased at a tax lien auction for $5,000
The certificate holder earns $2,000 interest on the certificate
For a total owed of $7,000 at the time the property goes to a tax deed auction
The mortgage on the same property is $100,000
The contractor’s lien against the property is $10,000
The tax defaulted property is then sold for $100,000
At a tax deed auction in the case where the certificate holder doesn’t receive
The property when it goes to a tax deed sale the first debt to be paid
Is to the person holding the tax lien certificate the certificate holder gets their $5,000
Investment back plus $2,000 as a return on investment
Mr. Thomas said the mortgage holder gets $93,000
The mortgage company loses $7,000 because the tax lien
Certificate takes priority the construction company gets nothing and has no recourse
To get their money unless they sue the, the homeowner directly in court
The construction company cannot place a lien on the property again
Mr. Thomas said this example shows how safe and predictable such investing
Can be you either get paid or you get the property Ted
Has developed in-depth training programs that show you step-by-step how to profit
From tax lien certificates and tax deeds don’t miss his must-see video
At his website http://www.tedthomas.com
http://www.tedthomas.com