Hi-
I have been getting into this tax lien investing scene and went down to the State Capitol here in Little Rock. I don’t really understand what Arkansas has to offer an investor but if someone is interested in deciphering the situation with me … I’d love to share some information … I can even send you a schedule of their sales and listed properties.
Apparently, overdue taxes do not go up for auction as a tax lien certificate. The state merely holds on to the delinquency and the property goes up for auction after a set period of delinquency. When you go to the auction, you are bidding on the assessed value of the property PLUS the taxes (including fees, I guess). At least this is what appears to be true from their literature. When I asked the girl at the courthouse what the interest rate/return was … she said there was none! So … in essence you go to auction, bid…and pay. The owner legally has 30 days to redeem. If they don’t, then you get title to the property, you don’t even have to go through foreclosure (or so she intimated… but I wasn’t sold on the fact). If the owner does redeem , then the state just gives you your money back … NO INTEREST EARNED! What’s the incentive? Is what I asked her! The hope that the owner doesn’t redeem in 30 days? How’s that for an interest-free loan to the debtor?
Arkansas is a very beautiful, but poor state. I must say it can thank its legislators for that. And I have also found that things here are a bit suspicious … all you have to do is read the papers, and then … between the lines!
Anyway … here’s the website for the State Land Commissioners’ Office, the office responsible for conducting the auctions. They seemed very helpful in person … but I had the feeling that very pertinent information was not revealed during my first visit to the Capitol. Like how difficult it is to get title, etc…
www.state.ar.us/land/land.html
Maybe I’m missing something because I haven’t done any official investing yet in other states. But it seems to me the obvious in Arkansas … you’re just bidding on the property and not seeing anything in profits or returns.
Thanks for your interest …
Mary Kathryn :-\