In Georgia, you can earn 20 per- cent and in Texas you can earn 25 percent on your money. However, most people investing in tax liens want the property, which is typically sold for pennies on the actual dollar value. The banks prefer the inter- est but are also fine with acquiring property. I’ll give you one guess on how banks finance these high yield tax lien investments. Yes, with your hard-earned deposits. How much of the yield do they share with you? So, what are the banks investing in and what is a tax lien? And how can you take advantage of the Secret Billion Dollar Industry? Tax liens are basically a debt owed to a local taxing authority, such as a county, for unpaid property taxes. In Georgia, per state law, on January 1 of every
year, the county is automatically awarded a default judgment for any property taxes owed and not paid in the previous year. The county can then take that judgment and file it with the Clerk of Court where it becomes a FiFa, a legal instrument allowing for the collection or en- forcement of the judgment through garnishment or levy. The FiFa is then filed in the County Deed Records where it officially becomes a tax lien. And since the county needs money to function, it can now sell the record- ed tax lien at public auction to the highest bidder who receives either a tax lien certificate, a tax deed, or a redeemable tax deed depending on the state in which they purchased. Property taxes keep these local governments functioning, and play
a significant role in the upkeep of schools, salaries (teachers, police officers, firefighters, judges, law - yers, doctors, sanitation workers, etc.), public utilities, roads, parks, public health facilities, libraries, etc. Without property taxes, most counties would be crippled. For this reason, states have given counties the right to sell their tax liens at public auction. After a parcel is sold at auction, the homeowner is eligible to collect proceeds over the amount owed to the county. The county gets the money it is owed so it can continue to function, as well as continued tax revenue, and the community in which the property is located is saved from a house that could easily become dilapidated, cause blight, and lower
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