Why Invest in Vermont Tax Liens?

Sale Details

Vermont Tax Lien – Varies Based on Supply

Redemption Period

1 Year

Interest Rate / Penalty

12%

Bid Procedure

Premium Bid

Number of Counties: 14

Useful Links

Agency of Administration Department of Taxes

When people think of tax lien investing, Vermont might not be the first state that comes to mind. But for those in the know, Vermont offers some great opportunities—if you’re patient and know what to look for. In Vermont, tax sales don’t happen every day, but when they do, they can be a smart and profitable investment.

How Do Vermont Tax Lien Auction Sales Work?

In Vermont, when a property owner doesn’t pay their property taxes, the town or city can place a lien on their property. This lien is like a big red flag, saying the owner owes money. If the debt isn’t paid, the town can sell the lien at a tax sale. When you buy a tax lien, you’re basically paying the property owner’s taxes for them, and in return, they owe you that money back—with interest.

Here’s A Simple Rundown of Vermont’s Tax Lien Sales:

Type of Sale: Vermont sells tax lien certificates.

How Bidding Works: The person who bids the most wins. But be careful—if you bid too much, you won’t get the extra money back, and it won’t earn interest.

Interest Rate: You can earn 12% a year on your investment.

Redemption Period: The property owner has 1 year to pay you back.

Auction Type: The town or city holds these auctions in person.

Can You Buy Over the Counter?: No, you have to attend the auction.

Key Points to Keep in Mind Before Investing in Vermont Tax Liens

Key Points to Keep in Mind Before Investing in Vermont Tax Liens

 ⦿ Overbidding Risks: Vermont uses a premium bid auction, where the highest bid wins. However, bidding above the lien value can reduce your effective returns since the excess does not earn interest.

 ⦿ Limited Auction Frequency: Tax lien sales in Vermont are rare. They occur less frequently than in other states, meaning investors must act quickly when opportunities arise.

 ⦿ No Over-the-counter Sales: Vermont does not offer over-the-counter tax lien purchases, so you must attend the auction in person to secure a lien.

Why Vermont Is a Good Choice for Tax Lien Investors

Even though tax sales in Vermont don’t happen very often, when they do, they can be a great way to invest your money.

1. High Interest Rates:
   • Vermont offers a 12% interest rate on tax liens, which means your money can grow pretty well.
2. Easy-to-understand Process:
   • The process for buying tax liens in Vermont is straightforward. Auctions are held in person, which can be less stressful than competing in online auctions.
3. Lower Risk:
   • With a 1-year redemption period, the property owner has some time to pay off the debt, but if they don’t, you could end up owning the property. Remember that sales are rare, so you might have to wait for the right opportunity.

Vermont may not be the most active tax lien market, but it’s an option worth considering for investors looking for reliable returns and a straightforward process. Keep an eye out for opportunities in key counties, and bid carefully to maximize your returns.

Some Vermont Counties to Keep an Eye On

Since each town or city in Vermont handles its own tax sales, it’s helpful to know which counties might be worth watching. Here’s a list of Vermont counties and their websites:

Fun Facts About Vermont

1. Small State, Small Population:
   • Vermont is one of the smallest states in the U.S., with just over 645,000 people.
     
2. No Billboards:
   • Vermont doesn’t allow billboards along its roads, which helps keep the scenery beautiful.
     
3. Green and Clean:
   • Vermont takes its environment seriously, with some of the strictest environmental laws in the country.

Conclusion

Though rare, Vermont’s tax lien auctions offer solid returns with a 12% interest rate and a clear-cut process. With patience and preparation, investors can make the most of these opportunities and even potentially acquire property. If you’re new to tax lien investing or looking for expert guidance, we can help you through the process. Consider Booking a consultation or checking out our FREE resources for more details.

Vermont Tax Lien Investing FAQs

1. Q: How often do tax sales happen in Vermont?
   • A: Not very often. Tax sales in Vermont are rare, so you’ll need to be on the lookout for them.
     
2. Q: Can I buy tax liens online in Vermont?
   • A: No, Vermont only holds in-person auctions for tax liens.
     
3. Q: What if I bid too much at a Vermont tax sale?
   • A: If you bid more than the lien amount, the extra money won’t earn interest, and you won’t get it back if the lien is paid off.
     
4. Q: Can I buy tax liens directly from the town if they don’t sell at auction?
   • A: No, Vermont does not offer over-the-counter tax lien purchases.

Need Some Help?

We can walk you through every step of tax lien investing in Vermont. Whether you’re new or experienced, our team is ready to help you make the best choices. Book a consultation or check out our FREE resources to learn more!