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Different methods used to sell tax liens

Tax lien is generally sold through tax lien auction. For selling tax liens so many methods are used. Some of the methods used in the auction are bidding on the interest rate, Random selection, Rotational selection, choosing investors based on highest premium and bid down the ownership method. If the auction is based on highest premium, then the tax lien investors should specify the excess of amount which he is willing to pay for the property. For more information, visit https://sproutfund.co

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Different methods used to sell tax liens

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  1. Differentmethods used to sell tax liens

  2. CONTENTS Introduction Biddingdowntheinterest Highest premium Random selection method Rotational selection method Biddowntheownershipmethod

  3. Introduction All the states in USA attach tax lien on a delinquent property to collect the unpaid propertytax. Tax lien is generally sold through tax lien auction. For selling tax liens so many methods areused. Some of the methods used in the auction are bidding on the interest rate, Random selection, Rotational selection, choosing investors based on highest premium and bid down the ownershipmethod.

  4. Bidding down theinterest If the auction is based on the bidding down the interest, then the tax lien investors should bid for the lowest interest rate to get the tax lien of the delinquent property. The investors who bid for the lowest interest rate than his competitor will be announced as winner in tax lienauction.

  5. HIGHESTPREMIUM If the auction is based onhighest premium, then the tax lien investors should specify the excess of amount whichheiswillingtopayforthe property. Taxlienisgiventoinvestorsifhe pays the highest amount of extra money in the auction.

  6. Random selectionmethod In random selection method, the tax lien isgiventothetaxlieninvestorbasedon computer selection or by lottery. In this method it is difficult to rememberwhichinvestorshouldbid first on the property.

  7. ROTATIONAL SELECTIONMETHOD In rotational selection method the tax lien is given according to the bidder number of the investor. In this rotational method an investor can also refuse the tax lien offer. The investors who get his offer will not be given second chance to bid first again in theauction.

  8. Bid down theownership method In bid down the ownership method, the tax lienof a property will be given to an investor who purchases the security interest of theproperty. If full encumbrance is asked by so many investors then random selection method is used.

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