
Tax Lien Sale Results – What’s Changing?
Competition has escalated at tax lien sales since 2008, especially for the online tax lien auctions. It’s gotten so competitive that it has been difficult to get tax liens at decent rates for the last few years. And even the junk properties have been getting sold at the online tax lien auctions. All that is changing this year for 2 reasons. The first reason is something that I’ve been waiting to happen for the last few years.
The Federal Reserve has kept interest rates extremely low for years in an attempt to stimulate the economy. This is one of the things that contributed to banks and hedge funds jumping into the tax lien market. It also was the reason these funds were able to bid down the interest rate so low or bid up the price of liens and redeemable deeds so high that they were making extremely low single digit returns on their money. But all that is changing now. Continue reading
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