Hello All,


I'm looking to start investing in delinquent property tax sales and delinquent property tax deed sales. I've done some research and found Michigan to be a very lucrative state as far as the amount of interest one would be able to collect from a tax sale. Upon further research I found out that as of 2006 Michigan no longer does tax sales but now does tax deed sales. Some of the research I found stated that the tax deed however might come with some encumbrances. What are these encumbrances if any and what is the difference between a tax deed sale Vs. a regular tax sale? Does it mean that I would not be able to charge interest on a tax deed sale as I would a regular tax sale? Where would I be able to get the amount of interest I would be able to charge in accordance with Michigan law?

Thank you all in advance.

http://www.michigan.gov/documents/Auction_FAQs_105827_7.pdf

TREASURY - State-Foreclosed Real Property (http://www.michigan.gov/treasury/0,1607,7-121-1751_3437-118951--,00.html)

In states that issue a tax certificate, in those states the preious owners have a right to reclaim their property by paying the amount of the auction plus a set percentage. This time frame varies from 1 to 3 years by state.
But this seldom happens since the amount of the bid plus interest is very large and had they wanted to keep the property they would have.
Also in most states the interest you can get is set at 10 percent.

Mich currently does not issue tax certificates but gives you a quitclaim deed at the time of the sale.
So after you buy the property you can take possession of the property and just sell it.

So you will not be charging interest to anyone since you will just own the house to sell.

The home may still have liens on it from other government agencies, "such as IRS" but other liens are cleared at the sale.

Also "charging" the interest is only of value if the old owner is willing to pay it, to get it back. But the mail issue will be selling it, after you buy it,