Tax Lien Investing Risks

Investing Tax Lien Certificates

Spending in tax obligation liens via purchases 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 Following the tax obligation lien sale, successful bidders will certainly obtain a copy of the tax obligation lien certificate of purchase for each residential property. Investing in tax obligation liens with acquisition at the tax lien sale is simply that, an investment.

How To Tax Lien Investing

When a homeowner drops behind in paying home taxes, the county or district may place tax obligation lien against the residential or commercial property. Instead of waiting for repayment of tax obligations, governments in some cases determine to market tax lien certificates to exclusive capitalists. Your earnings from a tax obligation lien financial investment will certainly come from one of 2 resources: Either interest repayments and late fees paid by home owners, or foreclosure on the home sometimes for as little as dimes on the buck.