How Does Interest Accrue On A Tax Cert?
Hi all,
Quick question regarding Tax Certs in NJ. Let's say I buy an outstanding tax certificate in my town for 10%. How does this Tax Cert accrue its interest (daily, monthly, yearly). Correct me if I am wrong but there is a 2 year redemption period for Tax Certs in NJ after which I am able to call a foreclosure on the propert. Thanks in advance!
divide the 10% by 12 - in Florida it is done that way.
So you divide 10 by 12 which is .84 and this is the acruel rate per month?
So if you hold a note you for 20 months then you would of made 16.8%?
Is this the way every state does this but with different interest rates?
Thanks
In New Jersey the holder of a tax certificate receives 18% interest per year or until redeemed and the owner of record or other interested parties in the property may redeem within a two-year period following the tax sale. In addition there can be penalties added to the interest depending on the amount paid for the tax certificate.
As the owner of the tax lien certificate you have the ability to foreclose on the property. This means that the holder of the tax lien certificates take possession of the property.
Foreclosing on the property means that you are exercising your right to acquire the property that you are entitled to. Foreclosing on tax liens does not happen often.
Go to http://www.thecreativeinvestor.com/modules.php?op=modload&name=FAQ&file=index&myfaq=yes&id_cat=5&categories=Tax+Lien+Questions to learn more at TCI.
And
http://www.thecreativeinvestor.com/ViewTopic30084-16-5.html
Take careful note of each property you find and do as much research as you can either on-line or at the local municipal offices.
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