NJ Tax Lients
Folks, can any one get me started with started investing in tax liens in NJ - specificaly union county? Where would I go to find out info on the process? Thanks Much
Folks, can any one get me started with started investing in tax liens in NJ - specificaly union county? Where would I go to find out info on the process? Thanks Much
You can start by reading about NJ tax lien sales, then by attending a few tax sales to see how thet work. Get there early. Watch the pros conspire to gobble up all the available, 'product' leaving crumbs for the locals...
In my opinion? Don't waste your time. You are 15 years too late.
Tax lien investing in New Jersey has been very unprofitable for the past 18 months.
There are 531 municipalities in NJ and they all have annual tax sales. There are six to eight companies that show up at all the NJ tax lien sales, with money from pension funds and wall street. They bid everything down to zero and than pile on premiums to get the liens. These companies are not working with their own funds. They are servicing companies, who have convinced pension funds and wall street money that buying tax liens is a good investment. The result of all the competition is that the very low bids and the premiums being paid, allow these people to yield one to two percent on the liens.
At some point the money behind these companies will wake up and realize that they have been taken for a ride. Until that day, I just go to a tax lien sale every few months to see if the 'crazies" are still there. As of last week they still were.
On rare occasions, a tax lien is not redeemed and the certificate holder (after 2 years) can start forecloure proceedings. If they get the property, they can make out well due to rising property values. Again, this happens on rare occasions. If you go to these tax sales, you'll be bidding against companies who have no real vested interest in making a good return. Their interest is in servicing the liens, profitable or not.
Be patient, eventually this sorry situation will turn around.