Tax Lien versus Tax Deeds and How to Purchase a House for Under $2K

Have you ever considered what the penalty is when a property owner is unable to pay their taxes? Well as you may of guessed the IRS is intolerant and will do whatever is required to retrieve the taxes due, including forcing the buyer to foreclose on their home. On the outside this may seem like a very unpleasant situation, however, there are other sources of alternative financing available to assist this owner. That's where individuals like yourself can profit while providing a possible 'light at the end of the tunnel' for the distraught home owner.

A public property tax sale, also known as 'property tax liens', are auctions organized by local government councils in an effort to dispose of tax debt. What occurs is that the public bids on the debt owed by the property owner. For argument sake say you are the winning bidder. That means you are paying off the tax debt on behalf of the property owner by buying a tax lien certificate which establishes you as the new lender to the property owner. The property owner has to pay you back with interest before the expiration of the redemption period as predefined by the government. This redemption period can be any time between 6 months to 4 years.

The homeowner must then pay the winner back all their money plus interest by a specific date. The date will be determined and agreed upon by both parties. The lender is allowed to raise the interest anytime the homeowner fails to make a payment. If the homeowner continues to fail on the payments, the winning bidder will then be permitted to take over the home and the title. Either by profiting on the interest or by receiving the title to the home, the lender wins both ways.

Obviously, a savvy business person would like the homeowner to be unable to pay back the loan or default on the loan terms, so that they can receive title on the property themselves. It's in the homeowner's best interest to pay their dues on the home and home tax loan, but if their financial situation was bad in the first place, there's is a chance it may not improve anytime soon in this economy. In many cases, all odds are against the homeowner.

In addition to tax lien sales, there are also tax deed sales. Tax deed sales are when the government auctions off the property and title right away, giving the winning bidder immediate ownership. The current homeowners must surrender their home and/or property immediately. They have no choice otherwise. Tax lien sales will give them a chance to maintain their home, tax deed sales will not.

These government auction tax sale opportunities may be the best investments one can make because you actually have a house and/or property that either you own or have as collateral should your lien interest payments not be made. Just reflect on the amount of money you can make by purchasing a tax lien and charging high interest rates, or paying the defaulted taxes, receiving the house and either renting it for a monthly income or reselling it for a healthy profit.

To find sites with the best property tax sale opportunities and receive a free Government Tax Sale Properties Report check out property tax sales or to check out the site's main page page click government auctions.

Seized Property and Surplus Property are Treasure Troves of Bargains!

Many government auctions and police auctions consist mainly of seized property and surplus merchandise that come from many sources. What is seized property? This if property seized under state or federal “seizure laws”. Property used during a crime, or payed for by profits from crime, can be seized and auctioned off.

The scope and quantity of seized and surplus property offered for auction is staggering. You can buy jewelery, collectibles, art, houses, planes, cheap used cars… the list goes on and on. Anything you can imagine can probably be bought at a government auction or police auction, usually for pennies on the dollar.

A good source of information about Government Auctions and Police Auctions for seized property and surplus property web sites, which rates them from the best to the worst, can be found at http://www.governmentauctionsitereviews.com

Government Auction Site Reviews

Government Auction Site Reviews, reviews government and police auctions membership sites. You can find cheap used cars, seized and surplus property, unclaimed freight, and more.

Government Auction sites listing foreclosures and preforeclosures, as well as sites for seized and surplus property, seized vehicles, and unclaimed property uave been updated with all new reviews.

There is also an article section on buying at government and police auctions.