County Tax Lien Sale - A Secured Investment

County governments impose various taxes to fund a number of services like public schools, hospitals, parks, road construction and law enforcement. The county tax lien arises when taxpayer fails to repay due taxes even after a notice has been issued by IRS for payment. The county tax lien becomes effective from assessment date. It remains in force till assessment is met out as per the norms.

To recover lost income from faulty taxpayers, most of the county governments do tax lien sales through auction. During county tax lien sales, a person purchases the debt of another person with certain rights over his property or assets. After purchasing the right, the buyer loans money to property owner in order to pay his County taxes.

A county tax lien is a public sale that is held by various county governments once a year. Different states follow different laws regarding tax lien. Depending upon the county where tax lien is being sold, it can either be purchased at face value or can be had by participating in auction.

After the sale of tax lien, debts are to be paid within specified time; otherwise the rights of tax lien purchaser are dissolved or forgiven. The biggest benefit in investing in county tax lien is that it doesn't depend upon the economy. Most of the lien certificates significantly rise in face value. By paying subsequent taxes on schedule time, you can further increase your gain ratio significantly.

Before participating in a county tax lien, it is important to understand the type of sale. County tax lien sale may be a certificate sale or tax deed. Before participating in county tax lien, you should be aware of mode and time limit to repay the debt and transfer of property. It is better to get basic knowledge about property tax by consulting either a legal attorney or a government agency dealing in tax liens.

Annual county tax lien bills are mailed in early October of each year. These bills can be paid in two installments. Generally, 1st installment becomes due on 1 November. If the bills are not paid till last date, which is generally in December, a penalty of 10% is imposed. 2nd installment of County taxes becomes due on 1 February. If this installment is not paid till last date, which is generally in April, 10% of bill amount plus $10.00 is charged as penalty. Both of the installments can also be paid at one time.

There are some taxes that are known as "Unsecured". These taxes have no security of real assets like land. These property taxes are also as personal taxes. Unsecured taxes are levied on the current value of property. You can request to Tax and Treasurer Collector to convert your unsecured county tax lien into secured tax lien. You can also use online tax lien manager to do so.

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