Fortune writes: Hedge
fund executives who descended on Miami
last month for a conference on unpaid property taxes were treated to waterfront
cruises of estates owned by Madonna, Shaquille O'Neill and Elizabeth Taylor.
But unlike those celebrity residences, the houses the profit-chasing investors
were hunting at the gathering have a prosaic facade: tax liens.
Here's how it works: Several times each year, municipalities
in 28 states, plus Washington , D.C. ,
Puerto Rico and the U.S. Virgin Islands,
auction off scores of property tax liens, also called certificates, to
investors. The rules and rates vary, but homeowners typically have from six
months to two years to pay back the notes, plus interest, or lose their homes
to the investors. Less than 1% of sales go that foreclosure route, said Brad
Westover, executive director of the National Tax Lien Association, which
sponsored the Miami conference. Investors immediately pay the municipalities
the taxes owed, then over time collect that amount plus interest from the
homeowner….
Read all about it at http://finance.fortune.cnn.com/2013/05/01/tax-liens-hedge-funds/?iid=SF_F_River
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