What are Redeemable deeds? It is something in between a tax lien and tax deed. This actually purchasing the deed to the property, however, the deed is detained for a period of time known as the redemption period and as an investor it should be the first thing to seek. It is a specified time given to property owners to pay their debt. If the time period is up and property owners werenâ€™t able to pay, then there will be no chance to redeem the property. This will turn out as a good profit for investors since purchasing deeds from a tax auction contains only a small percent of propertyâ€™s market value.
Investors should also understand that redemption period differs in every state. Some states have longer period while others have only months to redeem. It is believed that if you want to earn high profits, then investing into properties that have longer period is recommend. Below are some states that offer redeemable deeds;
-Arkansas. The state only conducts tax deed certificate sales and by that it does not have an interest rate. The redemption period is actually 4 years but owners can also contest the sale to have an additional 2 years.
-California. It is a hybrid state that conducts both tax deed and lien sales which has an interest rate of 18%. This can be redeemed within 2 to 3 years depending on which county.
-Connecticut. Only conducts tax deed sales and there is an 18% interest rate right of redemption for a period of 6 months.
-Georgia. It holds tax deed sales. The interest rate is 20% and the period of redemption is until 1 year.
-Nevada. This state is also a hybrid state. Interest rate is up to 12%. For vacant land, it can be redeem within 120 days while developed land still has 2 years.
-New Hampshire does not conduct tax lien sales but property owners are required to pay the county 18% interest for the tax lien to be waived or may end up losing the property to foreclosure. It can be redeemed within a period of 5 years.
-Texas is considered the best tax deed state because aside from having 25% interest rate for the first 6 months, it also contains a lot of available properties. It has 2 redemption processes, first will be when property undergoes in the tax deed process which may take 2 years and second is after the property is sold at a sale, owner will only have 6 months to redeem the property.
Before investing into tax liens and deeds it is very important to know about its terms especially if it is redeemable. It doesn’t hurt to be well prepared at all time and in return, it will prevent further risk of losing any investment. Read more about this at http://www.taxsalessecrets.com/taxliens.html?orid=10519&opid=1.
Article source: http://goarticles.com/article/States-With-Redeemable-Deeds/7178516/