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Levy Lien Investing - Factors NOT to Buy a good Tax Lien

Recently someone approached me personally with a quite "valuable" lien that they had for sale. They didn't have the money to be able to foreclose on the lien together with wanted possibly to sell that as well as partner with someone about foreclosing it. (Have somebody else hire a lawyer to foreclose on the lien and share inside the profits). Whenever I checked into the home, I found out that will it was some sort of nonincome producing piece of land with small value, and the lien case had currently invested much more than $16, 1000. 00 in this attache. They had paid subsequent taxes over a good small amount of years and when they ended paying the taxes the note against it was hit off for the municipality.

Because this was not a fantastic real estate the municipality by no means property foreclosures the lien at the same time. The original lien has been ordered back in 93. The municipality picked upwards the lien within 1997 and the back taxation owed on this real estate now are probably extra than the property is worth. I had to offer her the bad news that will her attache is not really worth foreclosing on and your woman won't be able in order to market it. If she solely recognized when NOT for you to buy a tax mortgage, this bad investment could have been avoided.

So here is often a list for you of a new few causes not to invest in a income tax attache. Be sure plus look into the items on this particular list to get tax great deals properties when you purchase some sort of tax lien certificate in the property and you will still prevent taking a great unwanted chance with your cash.

o There are NJ Parcels for the property or home (lower than usual to the area)
o You cannot look for the property on often the tax guide
to A person can't locate the house to look from it
a The property or home has the unknown operator
o The property will be land based with no best suited associated with way
um The exact property is definitely not large enough as well as not really the right design to create on (check zoning)
um There are before liens around the house plus the prior attache case is at the duty sale
o The home is definitely or has been recently contaminated (check the state environmental web site)
a The property is condemned or about to turn out to be ruined (eye-ball the home or check with the municipality)
o The grade of the home is too high in order to build on
o The property is in some sort of flood area

These are just some reasons not to help buy a tax document. My partner and i don't want to help give you the drastically wrong idea. Investing in liens are often very profitable. I think that it's a very good way to be able to invest your money carefully if it's done appropriately. You could find out all this reasons why I like within tax lien investing in my article Why Must i Invest In Tax Lien Records.

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