Investing in tax deed sales in Michigan can be an additional income-generating activity for people already investing in home foreclosures in the state.
Carrying out the two activities as investment endeavors is viable as both involve foreclosure of property. Tax deeds result from failure to pay residential property taxes while home foreclosures result from failure to make the monthly mortgage payments. Tax deeds are issued and sold by local governments such as counties while home foreclosures are undertaken and resold by lenders.
Additionally, tax deeds are oftentimes better investments than tax liens, particularly for investors already involved in handling and reselling properties. Buying a tax deed means obtaining full ownership right to the tax-delinquent property while buying a tax lien means getting the right to obtain the payment of the unpaid property tax plus interests and penalties.
There are cases when a tax lien becomes essentially a tax deed when the tax lien is not redeemed within a certain period and the tax lien buyer files a foreclosure case to take title to the property. Specifics on this however vary from state to state.
Tax deed sales and real estate foreclosures have been rising in Michigan and in other states because of extreme financial difficulties experienced by homeowners. Unemployment and loss of additional income sources are forcing property owners to miss their payments. Typically, food, health and young children’s education take precedence over all others when there is only little to spare.
Michigan foreclosed homes jumped up in number in May to 8,009 units, higher by 28 percent than the 6,252 homes that reverted to lenders in April. A big percentage of these numbers are foreclosed homes for sale in Warren, MI as the area is the largest city in Macomb County and the biggest suburb of Detroit.
With the relatively high number of tax deed sales in Michigan, investors can increase their opportunities for investment returns from distressed properties.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
Notice: In accordance with FTC guidelines, we state that RealEstateProArticles.com has financial relationships with some companies and may be compensated if consumers choose to buy, subscribe or take any action to a product or service via the links on our website. Occasionally, we receive free access to review a product or service. We do not accept compensation in exchange for a positive review. These reviews are strictly the opinions of the author.
![[Valid RSS feed]](http://www.realestateproarticles.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites