Tax liens are usually placed on a property by the government, usually for personal or real estate properties. Tax liens prevent a homeowner from selling a property until that persons taxes have been updated. Tax liens also prohibit the sale of a homeowner’s personal items, such as a vehicle. The government usually places tax liens on a person if they do not pay their property taxes on time.
Foreclosures usually sell for lower prices than homes that are put up for sale for the regular market price. To really profit from a property, you need to develop a certain amount of equity or hold it for a long period of time. A lower priced home can fetch a high amount of equity if you spend time fixing it up or adding things on to it.
Usually, a homeowner will receive a foreclosure notice once they have missed a certain number of mortgage payments. Besides a foreclosure notice, another name for it is a default notice. People usually receive this notice in the mail and it is filed by the bank or lender. It usually states that the bank will initiate proceedings to take the property from the homeowner.
It’s hard for anyone when their house goes into foreclosure. They lose a major part of themselves and have to face strenuous legal proceedings. Usually, a lender will go file a lawsuit against a borrower to procure the money owed to them. A house goes into foreclosure when the homeowner misses too many mortgage payments.
