{"id":10277,"date":"2022-10-13T15:45:33","date_gmt":"2022-10-13T15:45:33","guid":{"rendered":"https:\/\/loans.tiida-nissan.ru\/?p=10277"},"modified":"2022-12-08T18:41:03","modified_gmt":"2022-12-08T18:41:03","slug":"tax-lien-repayment-deadlines","status":"publish","type":"post","link":"https:\/\/loans.tiida-nissan.ru\/tax-lien-repayment-deadlines.html","title":{"rendered":"Tax Lien Repayment Deadlines"},"content":{"rendered":"
Let's revisit tax liens in general.
\nDoes a property owner in the U.S. pay (z.B. If you don't pay your property tax on a property with a single-family house, the county can issue a tax lien on the property, a tax lien. Tax Lien Certificates can then be purchased by investors at auctions. If an investor buys this certificate, he pays the debtor's property tax, so he advances the amount.
\nThis is the beginning of the "Redemption Period" for the property owner. This period varies depending on the state. Example: In Indiana, the redemption period is only 1 year, while in Arizona it amounts to a full 3 years.<\/p>\n
The investor has paid the tax debt for the property owner for the time being. In principle you could compare advancing the amount for property tax with a loan. The debtor, thanks to this "loan", is initially paid the tax debt, but he must repay the amount with interest within a certain period of time, until the "repayment deadline".
\nThe property owner has thereby the possibility nevertheless still to pay its debts and to be able to keep its property. The debtor is given more time to pay the outstanding amount.
\nIn the USA, the property tax is much higher compared to Germany. On average, an ordinary household there has to pay 2.Pay US$200 in property taxes a year. In Germany, on the other hand, we only pay an average of €400 a year in property taxes.<\/p>\n
In the United States, all public facilities are financed with the proceeds from property taxes. These institutions include schools, fire departments, hospitals, police departments and many others. Now, assuming that property owners can't pay their property taxes, that means less money for the county to fund these important facilities. The individual counties are therefore very keen that the tax debt is paid sooner or later. Tax Liens buy debtors more time, allowing them to pay their tax debt 95 to 99% of the time after all.
\nAs the property taxes in the USA are very high, this means a big financial burden for many citizens every year. Accordingly, it's not surprising that many property owners can't always pay this amount on time. As an investor you support the property owners, because you buy them more time to pay the debts.<\/p>\n
From the time the Tax Lien is assessed on the property by the County, the redemption period begins to run.
\nIn each state, the repayment period may vary. In the Distr. Columbia this is only half a year, whereas in Wyoming the period is set at a full 4 years. The owner can then pay off the tax debt in this time period. The sooner he pays, the lower the interest (or penalty). The later he pays, the more interest is added on top of the tax debt. According to this, it's best financially for the property owner to pay off his tax debt as early as possible. For the investor, on the other hand, the return is highest if the debtor does not pay until the end of the term.
\n=> The later you are paid as an investor, the higher your earnings on the Tax Lien investment, because you get more interest on your invested amount. Looking at your bottom line, you'll wish the debtor wouldn't pay until the end of the term.
\nLet's make some examples.<\/p>\n
State of Arizona<\/p>\n
Object type<\/td>\n | Single-family home<\/td>\n<\/tr>\n | ||||||||||||||||||||||||||||||||||||||
Property tax 2020<\/td>\n | Owner does not pay<\/td>\n<\/tr>\n | ||||||||||||||||||||||||||||||||||||||
2021 February, Tax Lien<\/td>\n | 1.800 US$<\/td>\n<\/tr>\n | ||||||||||||||||||||||||||||||||||||||
Redemption period<\/td>\n | 3 years<\/td>\n<\/tr>\n | ||||||||||||||||||||||||||||||||||||||
Annual interest<\/td>\n | 16%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n In the state of Arizona, in February 2021, a tax lien (for 2020 tax liability) worth 1.800 US$ auctioned. The debtor has a redemption period of 3 years. In Arizona the annual interest rate is 16.<\/p>\n In February 2021 you will acquire this Tax Lien certificate. Provided the borrower pays at the end of the repayment period, you will get back your investment amount + interest for 3 years.<\/p>\n Your Tax Lien Investment:<\/p>\n Investment duration 3 years<\/p>\n
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