Massachusetts Tax Liens and Tax Deeds Investing Guide

Navigating tax liens in Massachusetts requires a clear understanding of the state’s distinct processes. As a property investor, you’ll find that Massachusetts presents a combination of tax liens and tax deeds, setting it apart from many other regions. A tax lien grants you the chance to earn interest on owed property taxes, stepping in as a priority financial claim on unpaid property taxes with interest. On the other hand, a tax deed is more direct, where you can acquire actual property ownership because of unpaid property taxes.

In Massachusetts, local towns and cities can handle their own property taxes instead of the counties doing it… This local control leads to diverse approaches—either selling tax liens, allowing you to collect interest and possibly foreclose, or municipalities maintaining tax liens, accruing interest themselves, and later offering the properties as tax deeds. Each municipality may adopt a different strategy in auctioning off tax liens in Massachusetts, and the interest rate attached is 16% with a six-month redemption period. The county’s possession of liens and subsequent tax foreclosure auctions can greatly differ by locality, making direct engagement with local governments essential to grasp their particular operational nuances and auction protocols.


Table of Contents:


Key Takeaways

  • Massachusetts auctions both tax lien certificates and tax deeds, offering unique investment opportunities.
  • Local municipalities determine their property tax collection and auction process, helping investors with due diligence.
  • Direct engagement with local authorities is critical for understanding the diverse tax sale processes in Massachusetts.

Tax liens Masachusetts auction - Crowd of bidders holding up numbered paddles at a live auction event.

Tax Revenue Recovery with Tax Liens in Massachusetts

Tax liens help Massachusetts collect unpaid property taxes. Local control means sale variations exist. We’ll explore methods, tax deeds, and why local knowledge matters.

Insights into the Tax Lien Method

In Massachusetts, local governments auction off tax lien certificates in a manner that best suits their region. These tax liens represent a statutory claim on a property, emerging from unsettled property taxes and enabling the holder to accrue interest on the overdue amount. One approach involves grouping tax liens into bundles, which customarily limits participants to sizeable institutional investors due to the scale. On the other hand, other counties opt to offer tax liens individually, thereby broadening the investor pool. The accompanying terms for these tax liens encompass a 16% interest rate and a redemption window spanning six months.


The Massachusetts Tax Lien Process Explained

When addressing property tax delinquency, some local entities in Massachusetts retain the liens and impose a 16% interest rate directly on property owners. After a six-month duration, these authorities commence their own foreclosure undertakings. This procedure results in a public tax deed auction where properties are sold to the highest bidder. It’s imperative to note the lack of uniformity across jurisdictions concerning the execution of tax foreclosures and auctions. The timeline of sales, the process of getting sale listings, and the guidelines surrounding auctions can significantly differ from one municipality to another. As such, it is important to get in touch with the city or town official to understand how their tax sale systems work.

To familiarize oneself with the foundational legal frameworks governing tax sales within Massachusetts, one could explore the Massachusetts General Laws, specifically Part 1, Title 9, Chapter 60

Autonomy of Municipal Governments in Tax Collection

Unlike some states, individual cities and towns manage tax lien sales. This local control can influence how auctions are conducted, so understanding these variations is key for investors.

Working with Massachusetts Municipal Authorities

In Massachusetts, understanding municipal protocols for tax-related property sales is essential. Local entities possess considerable leeway when opting to auction of tax liens. They may opt to group and sell liens in large batches, which tends to attract substantial institutional investors. They may also sell tax liens individually, which can open the opportunity to a wider range of investors. Massachusetts law decrees a 16% interest rate attached to these tax liens, along with a six-month redemption window.

Yet, it’s more typical for Massachusetts towns to administer the tax deed system where they retain the tax liens, accrue the 16% interest, and later auction the property via a tax deed sale after concluding the foreclosure proceedings. This is a unique investment opportunity that allows investors to buy properties at 20 to 50 cents on the dollar with no mortgage.


Final Thoughts on Massachusetts Tax Foreclosure Process

Massachusetts offers two primary avenues for addressing delinquent property taxes: tax liens and tax deeds. The choice between investing in a lien or pursuing a tax deed depends on the local government’s approach to tax delinquency. Both options require understanding local practices, making direct engagement with municipal offices crucial for accurate and specific information.

The state’s distinct method, where local municipalities lead tax collection efforts, necessitates a thorough due diligence process by investors.

If you’d like to know more about tax-defaulted real estate investing, Ted Thomas provides full support and complete training with home study coursesQ&A webinarslive tutorialsworkshopsweb classespersonal coaching with certified coaches, and an interactive map and auction calendar research tool that allows you to visit each county online to find the details about upcoming auctions.

Start your money-making journey by attending Ted’s 7-Hour foundational training. Book your seat today to attend the Retire Rich From Home Virtual Workshop.

Want to earn massive income from bargain real estate investing? Would you like to buy mortgage-free properties for pennies on the dollar? Or earn double-digit interest rates secured by real estate? Then get started today by clicking the button below and get your FREE Insiders Report.

Ted Thomas

Ted Thomas is America’s Leading Authority on Tax Lien Certificates and Tax Deed Auctions, as well as a publisher and author of more than 30 books. His guidebooks on Real Estate have sold in four corners of the world. He has been teaching people just like you for over 30 years how to buy houses in good neighborhoods for pennies on the dollar. He teaches how to create wealth with minimum risk and easy-to-learn methods.

The Ted Thomas Difference:

  • Ted is recognized as America’s Tax Lien Certificate & Tax Deed Authority and has been helping people with investing in tax defaulted properties for over 30 years.
  • Ted has built a team of certified coaches that have 70 combined years of auction experience and are available to his students by phone to guide and mentor you to avoid getting overwhelmed or worse, losing money
  • Ted has ironclad PROOF that what he is teaching you does work. With hundreds of successful students providing testimonials and a 4.9 Google rating which is unheard of in this industry.
  • Ted and his staff don’t hide behind a website; they can be reached during office hours at 321-449-9940.

Virtual Workshop

Retire Rich From Home

Book your seat today.