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Article Title: Beware Tax Liens For Sale on Ebay
Author: Joanne Musa
Category: Investing, Personal Finance, Real Estate
Word Count: 553
Keywords: tax lien investing, tax deed sales, tax lien investing expert, tax 
sales
Author's Email Address: [email protected]
Article Source: http://www.articlemarketer.com
------------------ ARTICLE START ------------------

Not too long ago I received a question from one of the subscribers to my Tax 
Lien Tips newsletter. He was confused because he saw a tax lien for sale on 
e-bay that sold for over $4,000. The face value of the lien was only 228.28 
with 5% interest on the lien amount. This was a Florida tax lien, so instead of 
having the opportunity to foreclose on the property, you would apply for the 
tax lien to go to a deed sale if the lien was not redeemed during the 2 year 
redemption period.

The e-bay listing said "Residential Home Near Ocean, Tax Lien Certificate." It 
included one aerial photo of the property and a few pictures of the Fort 
Lauderdale, Florida beaches. The item specifics said "Residential Real Estate," 
and made it look as though it was the real estate that was for sale by owner, 
until you read the description. The description clearly said this is a tax lien 
certificate. It had even stated that the seller of said certificate had never 
even looked at the property and recommends that you look at the property before 
bidding on the certificate.

I don't think that the bidders clearly understood what it is they were bidding 
on. Perhaps, even though the listing said otherwise, and so did the 
description, they thought they were actually bidding on the property. Or 
perhaps they thought they would have the opportunity to foreclose on the 
property if they owned the certificate.

They may have misread the description of the item for sale where it said "The 
Winner may have the opportunity to move for a tax deed sale on said property, 
in less than two years, by contacting the county office and following all 
procedures." I've highlighted those little words that the bidders apparently 
missed when they read the description of this item.

The description says that the winner may have the opportunity to move for a tax 
deed sale, not the tax deed. But I believe that whoever won this tax lien 
certificate, to the tune of $4,625.00 plus a 195.00 transfer fee, thought that 
they could move for a tax deed, which is not the way it works in Florida. But 
even if they could, the chances of this tax lien certificate not getting 
redeemed during the redemption period are quite slim. All the property owner 
would need to do in order to redeem this lien would be to pay the face amount 
plus the 5% interest and any outstanding taxes, which the seller lists as being 
only $203.27.

The seller of the certificate understood that this lien could be redeemed at 
any time and made provision for that in his terms of sale. The seller states 
"If the Tax Certificate is redeemed by the delinquent property owner prior to 
transfer to Winning bidder, then seller will substitute a Tax Certificate of 
equal or greater value to Winner. Otherwise, we will refund all fees including 
your final bid amount." So, even if you knew what you were bidding on, and you 
did your due diligence on the property, you could be substituted with a lien on 
a different property and there is nothing that you would be able to do about 
it. My advice is don't buy tax lien certificates on E-bay unless you really 
know what you're doing!

You can find out more about buying tax liens online in my Guide to Buying Tax 
Liens Online. It's a free bonus for you when you try the members area of 
TaxLienLady.  To find out more go to http://www.TaxLienLady.com/Membership.htm.
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