Florida Tax Cert Auction Tomorrow!
Hey everyone,
Im going to my first tax sale auction tomorrow and i have a question.
If i buy a cert. this year for a property and next year someone else buys a cert for the same property, who ultimatley gets to forclose on the property. Im in this for the Interest Rates but the more info the better. Thanks for your responses!
Im going in Alachua County, FL. Any advice? Im only going to bid on certs that are around 20-80$ just to get my feet wet, then in the next few months im going to visit the surrounding counties auctions.
BTW, in SC, the County sends me a check automatically, reimbursing bid amount plus interest. In GA, the redeemer has to hunt me down (registered letter/ phone/ personal visit/ etc..)
tbb2 is right, it depends on the locality.
I participate in AZ and FL certs and in both cases the interest is compounded. The interest is credited at the beginning of the month. And, once the cert is redeemed I receive a check in the mail.
AZ it is maximum 16% divided over 12 months or 1.33% monthly. In FL it is maximum 18% divided over 12 months or 1.5% monthly, but in FL you receive a minimum 5% return regardless of the rate bid and how quickly the cert is redeemed.
Thank you all for your answers. Whether or not the interset is compounded is exactly what i was getting at. I have been to the auctions,bought the certs,and some have been redeemed. The interset didnt pay us much as I had figured but still way more than any bank has to offer. Im going to stick with it whether I get a property or not. By the way Im in Jersey and the bankers are ruthless!
Hey thanx. Yeah all the % are on the cert. The city took the recording fee out of my money when the lien was redeemed. I figure why pay to record it when they can just take it out later. Does is really make any difference?
Chumah--It is 25% penalty, but TX is a tax deed state not a tax lien state. You actually buy the property with a right of redemption (2 years for homesteads and agricultural property, 180 days for all others).
IMHO this is a hairy enough thing to consult an atty.
Thank you, talked to my accountant today, she filed the certificate last week, and is in touch with a taxpayer advocate, realtor sent letter saying wouldnt list it without certificates of discharge in both names in hand to protect her company as well as any potential buyer. That should buy me a bit of time as well.
Thanks quidam for dropping these lines. What I want to know,what happens if the property is redeem? you holding the tax lien did you get to recover only what you spent in purchasing the title or there are some interest to make?
If the lien is redeemed you do get your original purchase plus interest.
There is one exception, in AZ they add a non-redeemable fee to the purchase amount (usually $5 or $10), this you DO NOT get back if redeemed (so you need to hope the interest earned covers the fee or you end up losing $$$ as I have).
Thanks quidam for offering these tips.
I very much appreciate.