Premium On Tax Liens
where is the profit for people who are bidding on high premium like in the state of NJ they are bidding on a 10k lien over 10k in prmium they have to pay 20k and if the owner will redeem before two years they have no profit at all why are they doing this please advise [ Edited by joeny on Date 03/24/2005 ]
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If anyone can explain that, they could also explain why someone would bid on a $5500 tax lien where the underlying property value was $800. Or bid zero percent on an online auction where the auctioneer charged 1% for its services.
Quote:premium on tax lien help
On 2005-03-23 17:32, joeny wrote:
where is the profit for people who are bidding on high premium like in the state of NJ they are bidding on a 10k lien over 10k in prmium they have to pay 20k and if the owner will redeem before two years they have no profit at all why are they doing this
please advise
<font size=-1>[ Edited by joeny on Date 03/24/2005 ]</font>
I was making a rhetorical statement.
If the property is any good it will be redeemed and they would make nothing, if the property is bad then they overpaid. I agree it makes no sense.
further information:.....the house was built and the the acreage sold off around it....the situation was not malitious but i do find myself at the brunt of it all.
what might happen if i allow forclusure....surely the bank could not sell it without aquiring my other half of the land
The bank could try to sell it. After all, you managed to buy the house only to find out what happened, so somebody out there somewhere would probably do the same.