Oklahoma Tax Liens

Written by Genevieve Hawkins
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Oklahoma is abnormal in that it sells both tax deeds and tax lien certificates, but this is only the start. It is, all things considered, only an average state in which to invest, but it may be a great place to get a home. With some investigation, a tax lien can amount to awesome returns--either in the form of a place to live or as property to re-sell for ten times what you paid.

Tax Lien Certificates

Depending on the county, tax lien certificates are sold in conjunction with tax deeds at separate places, but there is no auction. The interest rate, although a relatively modest eight percent return, is government mandated, meaning that it will not be lowered. Having this safety can mean a great deal to investors who shy away from aggressive bidding.

The redemption rate on tax lien certificates is a very short one year, meaning one can apply for an outright deed to the home if the homeowner fails to pay back the money with interest one year later. This also makes it an excellent state in which to try to acquire property, although you can never count on that. Statistically, 95 to 98 percent of delinquent property owners pay their taxes plus interest. Giving them less time to do so, however, makes it more likely to find property.

Beware of investing in houses that are unsound or have environmental problems, as it is not uncommon for property owners to leave property in this way. As always, check out as much as you can beforehand. Overall, this state can be risky with a low return--but it also has a better chance than most of hitting the jackpot on an investment and walking away with a home.


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