Iowa Tax Lien Certificates

Written by Genevieve Hawkins
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If you are interested in investing in tax liens, one of the best opportunities for doing so exists in the rolling plains of this state. Iowa may be best known for its corn fields, but in reality there is a great chance for a high interest yield there. With the fast redemption period, it is also possible to get a home out of a tax lien certificate here rather quickly.

Purchasing Tax Liens in Iowa

With regard to buying the tax debt of homeowners, Iowa is a strange state in many ways. If you are willing to sift through the laws, it is an excellent place for investment. The interest rate allowed is up to 24 percent, higher than most other states. Furthermore, the rate is calculated at two percent per month, meaning there is a chance of even greater returns for those who pay quickly.

The redemption period in Iowa varies somewhat by county, but is usually 1.75 years, or one year and nine months. This allows for a faster turnaround of your money than in most other states. Regardless of whether the homeowners pay back the taxes or not, it appears to be a good deal.

Like any other place, there is some red tape to handle in Iowa--beware of being asked to buy the certificate deed as foreclosure, as this immediately raises the price. Overall, however, it is an excellent place to invest. As with any other yield involving your money, just make sure the rules are known before leaping too far.


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