where do I start?
I'm a Delaware resident looking to
Learn the trade......
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First off I would consider what areas are You interested investing in!
There are 3 main types of Delinquent Real Property Tax Foreclosures.
Deed State - This is where each county in the state will sell the property & You as being the highest bidder gets a Deed to the Property.
Lien State - This is where each county only sells the Delinquent Lien on the property where You get a set interest rate that is set by each state's statutes. If memory serves Me right this interest rate can be 6 to 8% on the low end and as high as 24 to 25%. If the owner does not pay at the end of the redemption period You can apply for a deed at such time.
Hybrid State - There are a few states where they call it a Deed, but in actually the Deed acts like a lien where You get an interest/penalty rate of return. At the end of the redemption time period You can apply for a Deed to the property.
The next question once You decide on what You want to invest in, how far do You want to travel, for most beginners who has a full time job, in my opinion would be as close to home as possible, until such time You can afford to travel.
There are also some states/counties do sell deeds/liens by the mail, but these are usually properties that went through a auction and did not sell. But if You look hard I'm sure You can find some good properties from time to time.
In Delaware I have done some quick checking for You. All 3 Counties conduct each Tax Sales a little different. So You need to read each statutes carefully. Kent & Sussex getting a deed acts much like a certificate of lien where New Castle acts like a certificate that acts like a conveyance. Either way it is all 3 counties have a 1 year statutory right of redemption.
Here is some links that might be of reference to start with:
http://www.nccde.org/DocumentCenter/Home/View/7655 specifically look at page 14
http://www.sussexcountyde.gov/property-tax-informa... There was not much information that I could find so You may have to give them a call.
I hope all this helps in Your endeavors Jerome.
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