Glossary of tax lien and tax deed investing terms used on this siteThere are 150 entries in this glossary.
The reduction, decrease, or elimination of a tax previously assessed.
A process by which a bid may be submitted without the presence of the person submitting it, such as by mail, phone, an assistant, etc.
(a.k.a. Abstract of Title) 1. A condensed history of the chain of title to land, including, but not limited to, a statement of all liens, charges, encumbrances, and liabilities the land is subject to. May also include maps and plats. 2. In Texas, the book or volume of plat maps is sometimes known as an Abstract.
Tax lien sale in which the municipality is selling the current year’s taxes, and not the previous year’s taxes. There are no open taxes that can be paid on liens bought at an accelerated sale.
A measurement of land in any shape equivalent to 43,560 square feet (160 sq. rods). 640 acres make up a section, 36 sections make up a township.
Taxes imposed at a rate set by law or as a percentage of value.
A sworn statement in writing. Whenever you have any recording, search, or foreclosure fees you need to give the tax collector an affidavit. You should also provide the tax collector with an affidavit for any subsequent taxes that you pay. This is the only way to ensure that you get interest on your subsequent tax payments and that you receive the payments when the lien is redeemed. Some tax collectors also require affidavits to be notarized.
Evaluation or estimation of value of property by disinterested persons of suitable qualifications.
Increase in the market value of real estate over its value since purchase.
The value placed on a piece of property for tax purposes by a tax assessor, used for imposing annual real estate taxes
Transfer of a tax lien certificate or tax deed from one individual or entity to another. For the transfer to be effective it must be registered with the county. Usually there is a fee involved to record the assignment of a lien/deed. If the assignment is not recorded, the taxing authority will pay the original owner of the tax lien certificate or tax deed when it is redeemed.
After a home is sold the seller may be able to transfer the mortgage to the person who has just purchased it. The buyer must have approved credit to be able to assume the mortgage; the loan will still retain the same terms and conditions.
There are different types of bankruptcy, however, each one is a legal action that either functions to protect the debtor from having to pay more money to creditors than he or she could possibly pay (in the case of a voluntary bankruptcy), or, in the case of involuntary bankruptcy, to insure that creditors are paid. When a person or entity files for bankruptcy, their property is turned over by the court to a trustee to insure payment to creditors. Once bankruptcy is filed, a federal judge will order a “stay” or freeze on any actions by creditors. Depending on what type of bankruptcy is filed, if you hold a lien on the property involved, you may have to file a claim with the bankruptcy court. In any case, you will be unable to foreclose on the property on which you have a lien until the stay is lifted.
Survey line used to establish township lines on a map grid. The base- line runs east and west on the grid in order to establish north and south halves of the grid.
(a.k.a. Bid Off) A phrase used to describe the process when liens or properties are not sold at auction and they are written off to the county for disposition.