Zero Risk Real Estate: Creating Wealth Through Tax Liens and Tax Deeds

Real Estate and the Property Tax Process

As I mentioned, real estate and property taxes have been around since the beginning of time, and kings, countries, and governments have been collecting taxes for many different reasons since the dawn of man. Taxes are very much a part of everyday life. In the United States, similar to other parts of the world, owners of real property are required to pay taxes to their local government. The local government in turn uses these taxes to provide its residents with critical public services such as schools, roads, hospitals, transportation, libraries, and fire and police protection. Without these taxes being collected, public services would eventually cease, and mass chaos would ensue.

In more than 3,200 county and local jurisdictions throughout the United States, there are billions of dollars in overdue and unpaid property taxes. In just one county alone in Indiana that I was reviewing the other day, there is more than $55 million worth of overdue property taxes that are delinquent right now.

There are dozens of reasons why people don’t (or can’t) pay their property taxes. Divorce, death, financial problems, job loss, estate or probate issues, emotional distress, or foreclosure, to name just a few. However, if a property owner fails to pay taxes for any reason, the property is then deemed tax delinquent, and the government must take the necessary steps to bring the property back into compliance with the law.

These unpaid taxes take away money ...