Tax Lien Investing - Just Another Scam



Posted: Monday, April 17, 2006

by
M.D. Wholesale

We've seen and heard about the latest investing method on TV informercials, in newspapers and everywhere. Its even said to be so easy its like taking cendy from a baby. They're talking about tax liens and you should be vary wary.

Tax liens are liens placed against ones property by local counties and similar municipalities for non-payment of assessed property taxes. According to a website I just looked at its states that every county of every state sells these late or derogatory property tax bills for immediate funds after placing a tax lien against the property in question. This did use to be true in the past, but most states don not allow the public sale of property tax liens under any circumstance. One os these states is North Carolina. You cannot legally buy or profit from these sales in North Carolina. Yet these websites state you can - they just want your money for their kit $49 or more. They will take your money and run.

Upon further review over 37 states do not allow the public sale of these tax liens. Furthermore, even if they did the homestead laws in many states would suprecede any supposed foreclosing rights and make it so you could not evict these people from their homes for non-payment. Yet their advertisements state the opposite- good in any state. 5-25% guaranteed returns on every lien and most pay within 1 year, etc... These are all lies. The rule is this - if it sounds too good to be true than it is. If tax liens were such a great business than why isn't everybody else in it? By the numbers propsed by these shows, infomercials, websites and similar and the fact that this idea has been around for over 5 years there should be many, many millionaires. Where are they?

This scam is similar to ISC (Invention Submission Corporation). They promise new inventors a patent and big royalties. Finally after thousands of coomplaints the FTC looked into many submission companies and found that most just lied, took money and didn't deliver anything. It was a pure ripoff. This is the same. Keep your money. There is no money to be made by the property tax lien scam.

David Maillie is an alumni of Cornell University and specializes in biochemical synthesis for public, private, and governmental interests. He holds numerous patents and awards for his research. For more helpful information please visit:
http://www.mdwholesale.com

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Top-level comments on this article: (1 total)
» left by AD from NY, NY 4 years 164 days ago.
There are pros and cons about all forms of investment. Has the author of this article read "Rich Dad, Poor Dad" by R. Kiyosaki? Although each person is allowed their own appetite for investment, one can never fully comment on the risk of a particular vehicle until they have invested in it themselves.
» left by 4 years 164 days ago.
Yes, I have read Rich Dad Poor Dad and many other similar works, and the problem is he states his investments were during the 70's and 80's when all states okayed the public purchase of tax liens. Not today. Now 39 states do not allow the public purchase of tax liens. 5 more are in various steps of making permanent legislation on the matter. So soon that will 44 states that one cannot sell tax liens. Yes, if you happen to live in one of the few states that allows it for the time being you can make some money, but don't count on it for long as it won't be long before all states have it outlawed for public purchase. The point of this article was to address the infomercial idiots that are selling these ideas stating that anyone, anywhere can do it. This is a lie. In many states it is illegal and you will not be able to do it. If your state allows it, by all means have at it, but don't count on it to last forever.
» left by riley from new rochelle 3 years 121 days ago.
If this is true, which states allow tax leins to  continue.
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