New Jersey Tax Lien
I am looking for information on Tax Liens in Northern New Jersey. I am a real estate broker looking to invest some money into tax liens. I do not know much about the subject although I heard you can get a fabulous return on your dollar. Any advice would be appreciated as to where to start.
[addsig]
You have a lien against a home someone is usually living in and is short of money, although it could be a business, raw land, etc. So, you have an interest higher on the list to pay back than the bank or mortgage company. Typically, 95% or higher chance the owner will pay you back with interest within the two years. If it burns down, you have interest in the land still, so take a tax deed, sell and get your money back and a profit if it goes that long. Here is an example, a piece of land here went beyond the two years, wrote the neighbors, took offers, settled at 3k for a $250 lien, took tax deed and immediately sold to collect a huge profit.
I am going to tax accessors office to find out about these liens. They seem like a sure bet on one hand and risky on the other.. If the home owner pays you back then you make a much higher profit than at a bank but what you are saying is make some money and sell the lien before the time is up, if I get worried that a problem is coming? Is this correct? Because if a home owner is in trouble and they have say a "fire" they would be reimbursed the money from an insurance policy verses would I still get the money for the tax lien I bought? It seems like thewre is alot of ways this could go wrong. I am cynical because with foreclosures when homeowners leave they tale the toilets, cabinets , sinks and whatever else they can.
[addsig]
Sounds like you are nervous about something that I have not heard about happening. You pay the back taxes, get a lien, and here you would get 3%-37.5% in 2 to 25 months or else at the 26th month you can get a tax deed. I have had 2 not pay in 5 years and called owner to work out payment. Of the ones that are due before 5 pm on 8-24-12, one is 2.9 acres that I can get the deed for about $125. I would say, do your research and try it with a little spare cash. That was me 5 years ago, bought 7 liens for a little over $3k and made about 11% in 14 months. The second year it was 18, third 35, forth 94, and in two weeks we will see...