So you are a tax lien holder! Congratulations! Now what?

There are many reasons why tax liens are bought. The most obvious reason is to hopefully gain ownership of the property. But there can be other reasons. Tax liens can often be a place where money can be parked in the form of a lien and grow.

Large investment companies may have an entire department of lawyers and clerks set up to handle the paperwork for notices and processes. Often individual property attorneys themselves know the laws well enough to navigate the process of tax lien ownership.

Individuals who purchase tax liens (especially in Louisiana) are in a unique situation. The laws of Louisiana have very strict steps for notice. This at the very least requires record keeping of research taken to locate the owner, the registered letters sent, standard letters, and all returned mail receipts.

As the redemption timeline moves along, in order to keep your claim on the property, you should also be keeping up with new taxes as they come due. This will add more capital at risk for the tax lien buyer.

For some, these burdens will add up to a point where it is time to “cash out”. What is then needed is finding a place where willing buyers can evaluate the lien and determine the best plan for the lien holder to exit.

When to sell a tax lien?

The timeline to sell your tax lien can vary. For 1st-time tax lien buyers it can sometimes be like a puppy that chases a car, what do you do when you catch it? The realization that you have suddenly tied up hundreds or thousands of dollars for what can be a multi-year process with the chance of real property ownership being slim is motivation to get out now. Others may realize that working with property owners to resolve the lien is not their cup of tea.

The point is this: When it is time to sell? Hopefully, before you need to. The best time to sell your lien is when an experienced buyer can see a return on their investment. If a lien is a past redemption, or the taxes have not been kept up the buyer market at the Tax Sale Market can become slim.

Contact the Tax Sale Market with your lien details, and let’s see what can be done to get cashback in your hands.