Big Banks Taking Over Tax Lien Auctions
While Bank of America and other major lenders are facing serious problems with their foreclosure processes, they are always looking for new ways to expand. Many of the big lenders are in the process of moving into the tax lien collecting business[1]. Just as when private investors purchase property tax liens and property tax certificates, these big corporations are also able to levy fees and interest on the properties and even foreclose if the debt goes unpaid for long enough. In an economy where many real estate investing options are trickier than usual – and where lenders are losing big time as loans go delinquent – tax lien investing could be a bright spot for lenders just as it is for other real estate investors.
Are you buying more tax liens rather than doing other types of investing right now?
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[1] http://www.huffingtonpost.com/2010/10/18/the-new-tax-man-big-banks_n_766169.html