Strange Comment From County...Tax Liens???
Hi - I've been reading a lot about Tax Lien Certs. and am preparing myself for my first auction. I called the Tax Collector's office in my county in FL and the person told me it was in May and that all of the property's are typically bid down to 1/4 percent by several big investment firms!!!
Does this sound feasible or was this person just trying to get out of work?
Additionally, I am trying to get a feel for what the actual Auction will be like. None of what I've read so far has addressed much about that. Can anyone suggest reading or comment on the atmosphere or onsite tips.
Thanks
viking777--(CA)-------------------
Why do you doubt the person who has given you this information? If you want to check it out, you might be able to read some paperwork on the subject, such as copies of the the actual tax liens. It is possible that the interest rate will be stated on them.
I certainly can believe that the interest rate is so low, as there is a great deal of competition for tax liens these days. Probably any subsequent taxes can be paid by the lien purchaser and yield the 18% interest.
The auctions that I have attended have all been simple public outcry auctions. Different people bid the price the are willing to pay or the interest rate they are willing accept for the lien. The person making the highest price or the lowest interest rate is then the successful bidder. In general the sales are a bit boring, especially if you don't know anything about the properties or liens being bid upon.
There is usually some interesting drama, people making mistaken bids, people asking weird questions, hard-fought bidding contests, perhaps people trying to get other people to partner with them so as to reduce the competition for what is for sale.
Good Investing***********Ron Starr*********
Thanks for the reply. I guess I'm going to have ask a dumb question because I am obviously missing something here...
I thought that the auctions in FL are based on the % rate that you are willing to receive. If they bid it down to 1/4 percent, how are they going to get 18%?
Thanks
viking777--(FL)-------------------
As I said, perhaps they can get 18% on subsequent years taxes if they pay those because they are unpaid also.
I don't know that this is true. The way to find out if it is true is to read the state statutes related to the collection of delinquent property taxes, tax liens, and tax sales.
Good Investing************Ron Starr************