Recently I received this question about tax lien investing. “I understand getting interest on your liens. I do not understand penalties. Does this mean that if you bought a lien, to get the deed to the property you would have to pay an additional penalty?”
The short answer to this question is no, if you purchase a lien in a state that has a penalty, you do not have to pay an additional penalty to get the deed to the property. A penalty is something that the property owner has to pay in order to redeem the lien or deed.
6 Things You Need To Know
Before I answer this question more thoroughly, I’d like to review the 6 things that you need to know before you invest in tax liens or redeemable tax deeds. The reason that I want to review this is that the statutory interest rate is #1 and penalties are #6 on this list. Each of these items listed can make a huge difference in your profit when it comes to investing in tax liens or redeemable tax deeds. They also make tax lien and redeemable tax deed investing very different in each state. Here are the 6 things you need to know before investing in any state: Continue reading
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