Purchasing Tax In Liens In NYS, NJ, CT
Hello, I have a couple of questions about Tax liens in these certain states NJ, NY and CT.
1)What is the forclosure period for each of these sates
2) When i purchase a Tax lien am i still responsible for the mortgage?
3) How fast do i get my profit from these tax liens.
I would truly apreciate your help and if you know any info burea where these questions could be answered it would mean a lot. Thank you.[ Edited by Investmoney on Date 10/18/2004 ]
Every state is different, every state and municipality has its own rules. For a example, NYC only sells the tax liens to a several municipal trusts created especially for this purpose. An individual investor cannot by the tax liens.
In NJ every township has its own municipality and conduct tax sales on regular basis. However rules are also varying.
Rate of return may be anywhere from 8 % to 18 % a year. Foreclosure state laws are greatly control how fast the process is going. In NJ tax certificate must be paid + interest and fees off within 2 years or the property goes to a sale.
I recommend you study foreclosure laws and procedures for every state you want to invest in, familiarize yourself with process and then decide what is good for you.
Dmitry.
Tax liens in New Jersey are now yielding 1 to 2%. Yes, there are six companies in NJ that go to almost all the tax sales and bid down the yield to these crazy yields.
Several of them are using pension fund monies and have the trustees of the pension funds buffaloed.
Normally, a lien goes for zero interest and between 50% to 100% "premium" to buy a certificate. That's what using other peoples money to bid for the certificates gets you. It takes awhile by paying the subsequent taxes (at 18%) in order to squeek out a very small profit.
Just go sit thru any tax sale in NJ and you'll be shaking your head. Makes no sense at all.
What is the best site to find more info?
The other site that I use to find tax lien and deed information is www.taxsale.com. They have a section that sells different state manuals with the state/county rules about tax deed/lien sales and so on and so forth that you may look into, but I haven't ordered one, so I'm not sure the depth that they go into. It also has forums like these...
The forecloser periods:
NJ - 2 years
CT - 1 year
I'm not sure about NY (sorry!)
Quote:
On 2004-10-20 10:16, jhayden wrote:
What is the best site to find more info?