Pennsylvania Tax Liens

At a glance, this may seem like a poor investment opportunity, but there is more to the Keystone State than meets the eye. Pennsylvania does not allow tax lien certificates in any of its 67 counties; however, they have a form of tax deed sale that may be worth looking into. There is no interest rate to report on the return, although there is a bargain to be had.

Pennsylvania Back Taxes Sale

When a property owner defaults on his or her property taxes, the county has a right to try to get the money back. In Pennsylvania, this usually involves the government foreclosing on the home for right to the property, then selling it at auction. Although deals are possible at this juncture, they are not as likely as they will be later.

If the property remains unsold for three months, the court is allowed to determine whether to free the property of all liens against it. Because the back taxes and penalties may be for a substantial amount, as is the value of the home initially, this is the best stage at which to get involved. With some careful research, it is possible to get a gem for almost nothing, and previous homeowners are long out of the picture.

Pennsylvania is an abnormal state relating to this investment opportunity--there is no interest rate to report, and there is no redemption period. However, with some careful investigation, the options may be better. Just take some time to learn the laws in this sate, and be sure to consult an advisor so you can get all of the facts.