Servicing The Tax Sale Certificate
i currently hold some tax sale certificates and am confused about the servicing of them (paying subsq taxes). even though i purchased the certificates at zero % i was told that if i pay any subseq taxes on that property as they come due i would automaticly get 18% on the subseq taxes paid. (i am in nj). if that is true then why do some people wait until the following year when the property taxes go up again and then go to the auction and bid 18% as a prior? why not just pay the subsq taxes every quarter as they come due (i know you have to wait 10 days after they are due as the property owner can pay them) also, on some prior tax liens i have had in the past, i was paid a 2% one time "penalty" for the amount of the lien, do i get that with every subseq taxes i will pay also? any help would be greatly appreciated.
also, do the certificates have a certain amount of "life" to them? i had read somware that after 7 years they become null and void. is that true? i am in nj
quidam,
thank you for your reply, but i am still baffeled buy the explanation on the % for the subseq taxes that could be paid by the certificate holder. if you are saying that whatever the % is on the winning bid for the origional certificate, all subseq taxes are paid at that rate, then how does one who not only bids down to zero, but pays a huge premium benifit?
lgncom
in NJ, interest paid on subsequent taxes paid by the certificate lienholder begin at 18%... plus any applicable surcharges.
ShortSalePro--Is this true even if the interest bid on the original certificate was less than 18%?
ok, that is not necessaraly true (18% on subsq). you get 8% on the subseq. up until you lay out a total of $1500. then you get 18%, no matter what your % is on the certificate
Thanks... I stand corrected. The threshold is $1500. In other words if the cert sold was for $700 at 0%, the next $800 paid in subs would earn 8%, after that subs paid would earn 18%.
[ Edited by TheShortSalePro on Date 04/16/2005 ]