Invest in unpaid taxes with a state guaranteed interest. Keep on reading about this exciting asset class, fairly unknown in Europe.
Find Out MoreYes, it is. As we all know different countries have different rules and regulations. In the USA, the vast majority of states are dealing with unpaid property taxes in a very special way. They simply sell them to the public and to make it appealing to buy, by state law, there is an interest attached to each unpaid tax debt sold.
The taxes collected are used to pay for the service that the city provides. Property tax is a local tax. Services like Police, Fire department, Schools, libraries, etc are all paid for with paid property taxes. Naturally, if some taxes are not paid there will be a shortage of money. So to avoid having a loss in revenue, the city sells off the unpaid taxes and can provide good service to its citizens.
It's very simple. The local tax office will send out reminders to the taxpayer informing them that if not paid the debt will be sold and interest added to the debt. After several reminders and after a certain time the tax office will sell all unpaid debts to the public. Anyone can buy them so this is not restricted only to Americans.
Once sold the tax office gets paid and the debt now belongs to someone else. The tax office also attaches the interest, which varies from state to state. In New Jersey, the interest is 18% per year. This means that the property owner now not only has to pay back the money owed but also the interest. And to secure the buyer's investment, the city will issue a lien on the property making it impossible for the property owner to sell, or mortgage the property unless the tax debt is paid off first.
The priority for the tax lien is higher than for example a mortgage. Such liens are known to have a super-priority.
No, not at all. With tax liens, there are only two outcomes. The first and obvious one is the interest that is legally attached to the debt. If a debt for some reason is not to be paid for two years, then the holder of the debt can start procedures for taking over the property. Yes, that's right, the owner of the debt has a legal right to initiate legal action and take over the property. Remember that the lien is a super priority and the property will be taken over free of any mortgages.
With tax liens, there are only two ways. Either you get paid the interest or you end up with the property.
Compared to traditional property investments, tax-liens offer a hassle free way of investment. No dealing with tenants. No maintenance. No worries about the ups and downs on property prices. Note that owning a tax-lien DO NOT give you ownership of a property (at least not initially).
BARTLETT INTERNATIONAL LLC was established 2017 with the purpose of providing taxliens as an alternative investment for the regular investor. The persons involved in the company all have extensive experience from the taxlien business but also from buying and selling real estate. We also work together with some of the leading companies in the taxlien service business. Our company is registered in Delaware and we have a representative office in New York, NY. Our mission is to introduce taxliens to the European market during 2024.
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