TAX LIENS & DEEDS
When property taxes are unpaid in many states and counties throughout the United States, the county sells the tax certificate lien on the property. These liens are sold either in a public auction or through negotiated transactions. The property owner then has a specified period of time in which he/she has the right to redeem the lien by paying the unpaid taxes plus statutory penalties and/or interest to that county. The county then reimburses the lien holder the amount he/she invested (ie., the amount paid to purchase the lien) plus the penalty and/or interest. The Company intends to maximize these high rates of return paid to the tax lien holders by the issuing municipalities and mandated by state laws by purchasing the tax liens sold by the municipalities.
Whereas many states sell tax lien certificates, others sell the actual deed to the property at auction. In some cases, you can buy the actual property at auction free and clear of any encumbrances at discounts to the value of the property. SLI Ventures, INC. Intends to purchase such liens and deeds.
Tax Liens and Real Estate.
While no one likes paying taxes, for some, the word "tax" is synonymous with "opportunity."
In fact, a whole new industry has boomed from people that scour local auctions for real estate sales, caused by delinquent taxes. These forced sales, or tax lien sales, are becoming more and more mainstream and popular with the general public.
What is a Tax Lien? In most jurisdictions, when a property owner is late on paying real property taxes, the county or municipality will issue a tax lien on that person's property. Certain states allow the tax lien to become a first lien on the property, which is then turned around and sold at auction as a tax lien certificate.
After placing a successful bid, buyers of a government-issued tax lien certificate will then get one of two things:
1. A state-mandated yield from the lien, which the delinquent taxpayer must pay in order to release the lien, OR
2. Title to the property (after a certain amount of time, set by the jurisdiction) if the delinquent taxpayer fails to pay up.
Tax deeds are sold in almost every state throughout the United States. Every homeowner must pay some sort of real estate tax to the government. If a homeowner fails to pay the required taxes on his or her property, the county (over 3,000 counties in the US) will offer the property up for sale at an auction to help generate the lost tax income.
Individuals have been snapping up tax liens more and more because of the two benefits mentioned above. A fixed percentage rate, mandated by a government agency, or the title to property at a substantial discount are incredible benefits rarely seen with other real estate transactions.