Why it Works
by Ken Marshall
Investing in tax lien certificates in the State of Montana is successful because the State Legislature has passed a series of laws that are very effective at either compelling taxpayers to make paying property taxes a priority, or enticing investors to pay those same taxes. If a taxpayer allows the taxes on a piece of property in Montana to fall into delinquency, the Treasurer of the County in which the property is located is required by law to hold a Tax Sale and issue a lien against the property. Unless that lien is completely satisfied (including all delinquent taxes, penalties, interest, and costs) within three years of the date of the tax sale, a tax deed can be issued and the taxpayer loses the property. Additionally, an investor can have the County assign its interest in the property by paying all delinquent taxes, penalties, interest, and costs that have accrued. All interest that accrues after the investor purchases the assignment will be paid to the investor. If the property is not redeemed before the final redemption date, the investor is entitled to receive a tax deed. If the investor incurs any allowable costs in the process of acquiring the tax deed (e.g. assignment fee, publishing costs, title search, etc.) and notifies the County Treasurer about those costs, they will be reimbursed if the property is redeemed. TaxLien Pro software makes the entire process of notification and timing simple in the tax deed acquisition business!
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