c. Hybrid States - ( a deed state that operates like a lien state) Investor gets title and interest, subject to property owners right to redeem (i.e., pay unpaid taxes plus interest, penalties and costs) within a specified period ( six months to four years). Such states are: Connecticut, Delaware, Georgia, Hawaii, Louisiana, Massachusetts, Pennsylvania, Rhode Island, Tennessee and Texas.
Click here to see an example of a Tax Deed
Click here to see an example of a Certificate of Sale for Taxes
Most people know very little about investing in tax lien certificates because resources on tax lien investing are scarce, and obviously so - because:
This type of investment does not involve brokers, therefore you will not find ads in any financial magazines. Since Banks & Big Wall Street firms do not get any broker?s fees, they really do not have any incentive to get involved. However, these same Banks and Wall Street firms are some of the most active investors at tax sales, purchasing certificates in hundreds of thousands if not millions of dollars. Think about the interest rates some of these certificates earn and you will soon see why this is such a desirable investment for banks and wall street firms.
Auctions are held by the government, either via the county or city and most often does a very poor job of advertising the tax lien auction. Governments are not very good at marketing and most times will not go out of it?s way to advertise. They will announce a notice of the sale, at least twice in local newspapers - but most often the Investor will not know the exact date the list will be included in the local paper, and the government will not give you this information. Think I?m kidding? Just pick up the phone and call your local treasury department and ask. Even when the tax list is published it?s often buried in the back of the newspaper somewhere. Most people will not even recognize the list when they see it and will just dismiss it as a legal notice of some sort.