Tax Lien Certificates and Subsequent Tax Procedures
Tax lien auctions have gotten more and more competitive in recent years. Some factors that have led to this trend include: more awareness among small investors because of new courses on the market, more Wall Street money entering the market and the new trend of internet tax sales.
If you have been to the tax lien sale lately you may have noticed something interesting. The big dog investors are bidding the properties down to next to nothing. In Florida, it's very common to see properties bid down to one quarter of one percent. Has your banker gone insane? Or do they know something that you don't?
It's probably a little of both, or they are probably playing the sub tax game.
What's the sub tax game? It's very simple, really. In many states, the regulations allow tax lien investors to pay the taxes for the following years, also called subsequent taxes. In other states, the investor is actually even required to pay the sub taxes. Even more interesting, many states also have minimum penalty statues on the books that make investing there very attractive.
For example, in Florida, it is very common for the tax liens to be bid down all the way to one quarter of one percent. However, Florida also has a 5% penalty clause and an 18% normal interest rate.
So, in Florida, the investor will often buy the lien at the quarter percent bid. If the lien redeems in three months, then he has made a 20% return. Worst case, the lien does not get paid for the whole year and the investor still makes 5%, which is a lot better than bank cd's.
Then, the investor has the sub tax rule to make up the difference. He simply pays the following year's taxes and is at the full 18% for the sub lien without any competition. Not only that, he is secured by high quality real estate.
The two liens together will average well over 10%. So, the investor either gets a nice high rate of return, or he gets a nice Florida house.
Of course, that's assuming that a hurricane doesn't blow the house down. Heck, he is even covered there, because the tax lien investor gets first dibs on the insurance money, ahead of the homeowner and even the mortgage company. What a deal!
So, as you can see, subsequent taxes are an area of tax lien investing where you need to know the rules and learn to play the game. If you do it properly, then you can make some huge profits!.
Visit his tax lien and deed blog at http://www.scarpero.com/real_estate.
Save Big On Your Mortgage
(NC)-Did you know that when you take out a fixed-rate mortgage, you're paying a big "safety premium"? That's because banks usually set their fixed rates at considerably higher levels than their variable rates. They do so to ensure that a fixed-rate mortgage will still be profitable for them if interest rates rise.If you're a potential homeowner, you should ask yourself if that premium is worth paying. It may protect you if interest rates spike up suddenly. But if they don't, you may end up paying thousands of dollars in extra interest. That's an expensive insurance policy.Historically, variable-rate mortgages have proven to be cheaper than those with fixed rates over the long term.
Even if you feel that interest rates will rise in the near future, you should take a long-term perspective. With a variable rate mortgage, you are usually starting out at a lower rate to begin with, and you will benefit from any decreases in interest rates that occur in the future.Banks and other financial...
Save Big On Your Mortgage
Mortgage > Save Big On Your Mortgage
home
Welcome to Kentuckymortgageloans.com ? Premier Kentucky mortgage broker site connecting you with best mortgage plans in the state.Have you spotted your dream home, or are you looking to receive improved terms on your existing mortgage - We will serve as your complete mortgage broker in Kentucky to help you realize all your financial needs in few easy steps. We offer all these and more??Hassle-free way to shop for mortgage loan ?Few simple safe steps to find the perfect mortgage you require ?Less paperwork ?Top mortgage lender in Kentucky ?Guaranteed lowest rates ?No Kentucky mortgage broker fee or hidden charges ?Extensive guidance and Expert one-on-one service Are you looking to save tens of thousands of dollars on your loan? - You have come to the right place. We will serve as your complete financial brokerage and help you find reduced interest rate mortgage programs, while at the same time shaving several years off your mortgage term. Not sure which real estate broker or lender to...
home
Mortgage > home
Realtor calls developer's decision to build new homes "smart move"
PINELLAS PARK, FL (ContentDesk) Sept. 6, 2003 --
Realtor John Mudd knows that new apartment complexes in the area have been struggling to get new tenants to fill vacancies throughout the year, but he also knows that sales of new homes and previously owned homes have been red-hot, driving prices up, making them a smart investment for both buyers and builders."According to the National Association of Realtors, home prices have steadily increased throughout all of 2003 throughout the Tampa Bay area, due to high consumer demand, however, NAR has also said that renting apartments has been more of a challenge, with apartment complexes having to give away the first month to the first two months away, rent free. Apartment complexes have also had to give away TVs, VCRs and other goodies, to entice renters to rent instead of buying. This should continue, even though rates have edged up to around six percent. Lower priced rentals, targeted toward lower income tenants, however, haven't...
Mortgage > Realtor calls developer's decision to build new homes "smart move"
Apply For A Mortgage ? Keys When Applying For A Mortgage Online
Applying online for a mortgage is very fast and easy. Just make sure of a few things before you start to look for places to apply to. Here are some tips to keep in mind when searching for a mortgage company to help you online:
- Apply with many different brokers, but make sure the online application or inquiry that you fill out will not allow them to pull your credit - If they ask you to describe your credit, it is likely that the broker is not going to pull it. If you enter your social security number, it is likely that they will pull your credit. If you do not enter your social security number, usually, that makes it so that they cannot pull your credit.
They eventually will need to pull your credit, but you want to make sure you have narrowed down the broker that you want to work with before they pull your credit.
- Enter the information on your application accurately ? If you are not accurate on your application, this will slow down the approval process. State your...
Mortgage > Apply For A Mortgage ? Keys When Applying For A Mortgage Online
Credit Card Debt Consolidation Home Loans Now Available With the "Payment Buster" Refinance Program
Winter Park, Florida (ContentDesk) March 6, 2006 -- Credit card debt consolidation mortgage refinance loans - http://www.fgmnet.com/debt_consolidation_mortgage_loan.php - can help consumers take control of their credit card debt load by paying off their credit card balances with a home refinance loan. First Guarantee Mortgage (http://www.fgmnet.com) a home mortgage refinance expert resource and multi-state mortgage broker located in Winter Park, Florida is now offering a Payment Buster debt consolidation home loan program to help homeowners with high credit card debt to refinance and gain tax benefits as well as lower monthly mortgage payments.With the Payment Buster debt consolidation refinance program homeowners now have the opportunity to consolidate all their high interest credit cards payments into one low tax-deductible payment.See more...
Credit Card Debt Consolidation Home Loans Now Available With the "Payment Buster" Refinance Program
Mortgage > Credit Card Debt Consolidation Home Loans Now Available With the "Payment Buster" Refinance Program
Is Your Adjustable Rate Mortgage About To Destroy Your Financial Future?
Winder, GA (ContentDesk) June 26, 2006 - With the economy moving strongly forward, inflation is on the rise which also means that home loan rates are on the rise. With over two trillion dollars in Adjustable Rate Mortgage (ARM) loans set to start adjusting in the next two years, many homeowners are going to be shocked when their payment adjusts.Most consumers are unaware of the fact their rate and their payments are getting ready to increase dramatically. And unfortunately, there are also cases where the consumer may be unaware they even have an ARM, let alone that it is getting ready to adjust very soon. Many economists are concerned that when the payments start to increase, it will have a massive impact on consumer spending&which in turn, will impact the US economy as a whole.Homeowners need to be made aware of the facts surrounding these issues as soon as possible, so that they can evaluate their options and make good decisions for their future. This is especially important if they...
Is Your Adjustable Rate Mortgage About To Destroy Your Financial Future?
Mortgage > Is Your Adjustable Rate Mortgage About To Destroy Your Financial Future?
Non Exclusive Mortgage Leads
When borrowers supply their forms of request for a mortgage loan, lead providers generate leads from the data supplied by borrowers and mail them to several brokers or lenders.
Very often these leads get recycled, as they move from one broker or loan officer to the other. Such leads are known as Non Exclusive Mortgage Leads.
Though Non Exclusive Mortgage Leads have a downside related to confidentiality and speed of transfer, they are less expensive than Exclusive Mortgage Leads.
More importantly, they can offer the best deal to the borrower.
Let's take an example.
Maggie applies for a Non-Exclusive Mortgage Loan at a mortgage lead providing company.
As hers is a Non Exclusive Mortgage Lead, the lead provider sends her lead to several loan officers and these people get in touch with her. As the loan officers increase, competition becomes stiffer.
It is much like the difference between one person spending ...
Mortgage > Non Exclusive Mortgage Leads
Mortgage
This page loaded in 0.63255 seconds.