It Was A Simple Question...nobody Knows This?
Hey yall,
I have a friend whos taxes may be sold this month (Oct), she will be getting the money to pay the taxes plus the penalties but is scared someone will buy them.
I told her not to worry because if they are sold, she has a redemption period with which to redeem them....she will be getting the $ to pay them about a week or two after the deadline.......
Please tell me I was right....
She lives in Cook County, IL
Thanks,
Clif
[addsig]
I dont know about your area, but in Florida they have 2 years to get the taxes paid before the deed would be auctioned. There would probably be alot of extra fees added by the county once it goes to the tax auction. Why not just contact the county tax office and ask them?
In Illinois she has until ~October 24th to remove her property from the "bid list". It varies by county, but some of the counties around Cook have a tax lien auction in early November and December. If she pays before the auction then no-one can "buy a tax lien" on the property.
After the lien is bought, she has ~2 years before someone can acquire a deed to the property. During that time period she can pay all the back taxes, plus penalties to prevent loss of deed.
If possible, she should try to get her taxes current before the auction or it will cost her more.
Thanks to all that responded
I kinda figured that was how it went...
Clif
[addsig]
Hi Pbodys,
Advise your friend to learn about redemption terms. Here is an example. Last monday (5 days ago), I bought a Tax Lien Certificate in Charleston South Carolina. The delinquent amount was about $1800. If the owners made their taxes current BEFORE the auction, they would only had to pay about $2000. If they redeem right now that I have bought the TLC, they would have to pay an EXTRA $2,250 (that will go into my pocket ). From the owner's perspective, they will be losing over 100% of what they owed just for being a week late (that's 5,000% annual rate). Too much of a loss for them in a 12% rate. So tell her not just to look at what the theoretical rate in her county is, but to understand the exact terms (how much exactly does she have to pay the week after). It may be better for your friend to get cash from her credit cards, make the taxes current NOW, then payoff the credit card once she gets the money she is expecting.
[addsig]