June 04, 2008

Current Real Estate Market is Impacting the Sale of Tax Liens

Recently in Central Florida, a tax certificate sale was, in the words of an Orlando Sentinel reporter, a “big bust” and potential losses for local governments could hit $20 million. According to this report, with the foreclosure rate so high, tax certificate investors are worried about getting stuck with property rather than the cash they want.

Tax liens and deeds are a great way to invest in real estate without actually buying property. You may want to review Jordan Taylor’s article on this topic – and scroll down to the question in the comments about what type of properties to look or and to stay away from. Keep this advice in mind: Don’t buy a tax lien on a property you don’t want to own. Chances are you won’t have to foreclose, but if you do, make sure you’ll be foreclosing on something you’re prepared to deal with.