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Judgment Enforcement – The Step-by-Step Course

Step 1: Buying Local Tax Liens & Real Estate Notes

As you research JD’s, you’ll come across tax liens on their properties. Only recently
have I thought about buying these liens. A piece of paper can become our lien on, and even
an ownership, in the real estate.

IN SHORT: MOM AND POP BUYING TAX LIENS

1. JD’s and others who have real estate sometimes haven’t paid their local real
taxes

2. So, a tax lien was placed on their property.

3. These liens are often listed with the town, city, or county, maybe not databases.

4. These liens are often auctioned to the public so that the
town, city, or county can get at least partially paid.

5. After we buy a tax lien at auction, we now have an interest

in that property. It might even be in first place ahead of the
mortgage.

6. Although we bought the lien at a discount, we are owed the full amount, with
interest accruing every day.

7. We can contact the homeowner and request reasonable payments over time from
the person.

8. Or we can force a sale of the property.

9. Or, in some instances, if the owner wants “out”, we can buy the property from
them at a big discount.

Example:

I looked at a property in the small town of Stamford New York. Three-story Victorian,
at one time a two-apartment place, with nice, old touches but needing some work. The
owner had paid it off, but owed 16K in tax liens. And, she wanted to move to Florida
(doesn’t everyone). She was offering it for sale for 59K. Zillow (yes, just an

approximation) listed it at 90K.

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