Why Wall Street wants your Property Tax Lien?

           Nearly a dozen major banks and hedge funds, anticipating quick profits from homeowners who fall behind on property taxes, are quietly plowing hundreds of millions of dollars into businesses that collect the debts, tack on escalating fees and threaten to foreclose on the homes of those who fail to pay.

           In my home state of Kentucky, government allows private parties to purchase property tax liens and make a 12% yearly interest income from such investment. It is a ultra safe investment protected by the government. But it defeats the common sense.
 How buying a 300$ property tax lien on a mobile home in a small Kentucky town will benefit a investment banker? Answer is very simple, They actually make much more than 12%.
       There are provisions in the existing law that allows lien holders to charge "actual" and "reasonable" attorney fees for the collection efforts. But existing laws failed to identify that "reasonale" is. Formula was simple, sign a deal witha local real estate lawyer and keep most of the attorney fees as profit. This arrangement is a game changer since it allows banks to charge almost thousands of dollars for a small 300$ tax lien.
        Middle America is facing a brand new challange today. Invesments bank that were bailed out by taxpayers money are now coming after your tax liens with vengence. I believe if any of the attorney costs comes back to the original investor, it defeats the primary intention of the law. Charging tax payes above the "actual" attorney fees are against the law. Try to charge a property owner thousands of dollars for a 300$ lien is unacceptable. If you get any letters from these tax collectors, please let me know. We are uniting to fight against these vultures all over Kentucky.