While it might not have been quite as exciting as tax auctions used to be, owners of properties with delinquent property taxes are probably loving the newer, quieter, computerized bidding system that enabled tax lien buyers to quietly punch in bids on their personal keyboards rather than shouting them out and struggling to be heard[1]. The average bid at the Madison County (IL) tax auction was “just under four percent,” reported treasurer Kurt Prenzler, who ran on the promise to use this computerized system in his tax sales moving forward …

In hopes of getting higher bidder participation in its annual tax certificate sale, the city of Anderson in Madison County in Indiana will be hosting a seminar to educate residents in the area about how to purchase tax liens before its next event[1]. Last November, the county hosted a tax sale in an effort to recoup back taxes but failed to move more than 2,000 properties. The April sale will list properties up for grabs for as little as $100, and the county wants bidders and would-be investors to be …

In Des Moines, the local school board faces a potential $6.8 million shortfall in their budget for the coming school year. The sum is staggering enough that even the board’s citizen advisory committee is considering property tax hikes to resolve the problem[1]. While most members hoped to increase district property taxes somewhere between $1 and $2 million, some members want to make up the entire deficit through tax increases. “Whatever is paid by the average citizen in property taxes is very minute compared to all they pay. Property taxes are …

Many people have been writing into the blog asking about how to get started investing in tax liens. One of the first things that you will need to do is to get familiar with your location options for investing. While it would be nice if you could just invest in your own hometown, that may not always be the best option for you. Not every local area has tax lien auctions, and even those that do may not have the right properties for your …

When property owners fail to pay taxes on their real estate, then the city in which the real estate is located has the option of selling off that property tax lien to the highest bidder. Particularly in these difficult economic times, municipal governments are relying heavily on these tax lien auctions to help bolster budgets that are lean and far in the red. However, in Detroit, many communities are saying that the money that comes into the government budget is not worth the blight on the neighborhoods when it comes …

A county in Georgia is considering adding another factor to property tax collection and to the imposition of property tax liens: rain. In Rockdale County, the board of commissioners is awaiting further information on the proposed idea of adding stormwater collection fees to the list of things that can be placed as liens on properties if left unpaid[1]. Currently, the fees are very difficult to collect from property owners, many of whom “deride it as a ‘rain tax’” or simply move away without paying. Currently, the county has no recourse …

Tax lien investors know that the holder of a mortgage on a tax-lien compromised property can be a friend or a foe. If you are hoping to have your lien redeemed, then a mortgage holder is a friend. After all, they would probably rather pay off your tax lien – with interest and penalties of course – to avoid losing their larger investment in the property. On the other hand, if you are hoping to foreclose on the property, a lender holding a large mortgage can be bad news since …

All over the country, homeowners and their municipalities are discovering that they are going to have to find a way to work together on utility bills. In many areas of the country, local governments are reporting that delinquent accounts have tripled as homeowners struggle to make payments or simply inform the country that the bills cannot – and will not – be paid[1]. This creates serious problems for city governments, which are responsible for schooling and public safety, among other things, and often rely on the current year’s tax dollars …

When properties go to auction to redeem unpaid property taxes, investors have the opportunity to get real bargains on those properties by purchasing unpaid liens. In Detroit, Michigan, however, the delinquent homeowners cashed in on those bargains instead with the help of a nonprofit coalition that purchased $194,000 worth of liens and “saved” 150 homes from the block[1]. The homes were purchased at the tax auction, “in most cases for a fraction of what they owed in back taxes,” thanks to Ted Phillips and his United Community Housing Coalition.
The coalition …

Purchasing a property via tax deed is a great way to get involved in real estate investing. Unfortunately for a homeowner in New York that has been fighting for his home for almost seven years now, a tax lien paved the way for a Long Island woman to forge his name, take possession of the property and then sell it multiple times to other investors[1]. Garfield Gillings let his tax and water bills slide on his Brooklyn house back in 2003. When he contacted the collection agency that he believed …