Florida Tax Lien Certificates

Written by Genevieve Hawkins
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With one of the highest interest rates in the country on liens, the Sunshine State provides multiple opportunities for investors. Because of the myriad of laws, there are many chances to make small fortunes, or to land a beautiful property. Be careful not to wind up with swamp land, though. Here's how to navigate between the two.

Tax Lien Certificates in the Sunshine State

Florida's tax code is odd, being that it allows tax sale repayment of back taxes either through tax liens or tax deeds, both of which are a sound investment. If an owner's property comes up on a county tax sale as a lien certificate, there is an 18 percent interest rate on the return--higher than almost any other state. Furthermore, there is a chance to make the property yours quickly through default judgements, although every county varies on the time necessary for this.

All states have a waiting period (called a redemption period) for property, the purpose of which is to allow owners to pay their back taxes, either to the lien holder or the deed holder. In Florida, owners are allowed only a short time, but the exact amount will vary by county. By doing some research, you'll have a prime investment potential at least and a new piece of property at best.

Whether you are interested in diversifying your investment portfolio or hoping to acquire some land, Florida is an excellent state to look into. With loose government laws and high interest rates, either option works wonders. Just be careful to investigate all investment potential, as you would reasonably do with other types of major investments.


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