How To Find Tax Lien Lists

When a homeowner fails to pay property taxes on a home for a substantial period of time, the local government can claim the home with a tax lien. Another enterprising businessperson can step in, pay the back taxes and penalties, and end up with the new home for only a portion of the cost. Obviously, this process is very lucrative, but tracking down these homes is difficult, unless you have access to a tax lien list.

Paying for a list

Many companies offer tax lien lists for a fee, sometimes a substantial one. Although some realtors swear by these, many scammers use this as a way to turn an easy profit. Since you pay for the list sight unseen, there is no money back. Also, by the time the list is compiled, printed, marketed and sold, many of the homes are gone.

Do your own research

If you have the time, there is a far better and cheaper way of finding tax liens. The first place to look is in newspapers and other classifieds. Depending on your state, sometimes tax lien auctions are announced when multiple homes are put up for sale. Going to a local courthouse allows you to search for tax lien certificates, which are publicly available. Finally, calling the state government or checking the website might help get a look at the list, depending on the state.

Realtors do better to put together a tax lien list themselves using government methods, rather than purchasing one. Doing it yourself makes a better, more accurate list.

Finding a tax lien home is difficult but getting just one or two homes per year can make for a successful career. The time, effort and anxiety are definitely worth it to an enterprising risk-taker.

End up with the new home for only a portion of the cost