It is my understanding that if you buy a lien in FL (maybe specific counties) you will never be able to apply for the property.
After 2 years you get to request that the property be sold to satisfy the lien. You have no priority in the auction that is run. You are just another bidder. Hence you do not get the property for the value of the lien.
The winner of the tax deed auction get the property and the lien is paid off with interest, etc.
So, the property is generally sold for something much closer to its value then the lien represents. It still might be a great deal (the tax deed purchase) but we could be talking 60% of FMV vs. 3%-5% FMV.
FL is the only state that I have heard requires an auction to satisfy the lien. The lien can also expire if no auction is requested.
I was researching a number of different states and the above comes from a lady that likes to buy liens but has no interest in the property.
Real estate taxes become delinquent on April 1st each year. Florida Statutes require the Tax Collector to advertise the delinquent parcels in a local newspaper once a week for three consecutive weeks following the payment deadline. Advertising and collection fees are added to the delinquent taxpayer's bill.
Beginning on or before June 1st, the Tax Collector is required by law to hold a Tax Certificate Sale. The certificates represent liens on all unpaid real estate properties. The sale allows citizens to buy certificates by paying off the owed tax debt. The sale is conducted in reverse auction style with participants bidding downward on interest rates starting at 18%. The certificate is awarded to the lowest bidder.
A tax certificate, when purchased, becomes an enforceable first lien against the real estate. The certificate holder is actually paying the taxes for a property owner in exchange for a competitive bid rate of return on his investment. In order to remove the lien, the property owner must pay the Tax Collector all delinquent taxes plus accrued interest, penalties and advertising fees. The Tax Collector then notifies the certificate holder of any certificates redeemed and a refund check is then issued to the certificate holder.
A tax certificate is valid for seven years from the date of issuance. The holder may apply for a tax deed when two or more years have elapsed since the date of delinquency. If the property owner fails to pay the tax debt, the property tax deed is sold at public auction.
ActiveREI
You are right in Fl if no one out bid your lien amount you will own the property, but the lien amounts are low. A lot of people don't understand that florida is a better state for receiving interest payments upon redemption because it can pay 18%. At the last Dade County auction people were bidding .25%. 100% of those liens will probably get paid or bought by someone else at the foreclosure. What a waste.
I am not certain but I think I heard 2 years. Good Luck
You need to check this one out carefully.
It is my understanding that if you buy a lien in FL (maybe specific counties) you will never be able to apply for the property.
After 2 years you get to request that the property be sold to satisfy the lien. You have no priority in the auction that is run. You are just another bidder. Hence you do not get the property for the value of the lien.
The winner of the tax deed auction get the property and the lien is paid off with interest, etc.
So, the property is generally sold for something much closer to its value then the lien represents. It still might be a great deal (the tax deed purchase) but we could be talking 60% of FMV vs. 3%-5% FMV.
FL is the only state that I have heard requires an auction to satisfy the lien. The lien can also expire if no auction is requested.
I was researching a number of different states and the above comes from a lady that likes to buy liens but has no interest in the property.
John
[addsig]
Thanks for the help! :-D
here is so helpful in i hope for you..
Delinquent Real Estate Taxes
Real estate taxes become delinquent on April 1st each year. Florida Statutes require the Tax Collector to advertise the delinquent parcels in a local newspaper once a week for three consecutive weeks following the payment deadline. Advertising and collection fees are added to the delinquent taxpayer's bill.
Beginning on or before June 1st, the Tax Collector is required by law to hold a Tax Certificate Sale. The certificates represent liens on all unpaid real estate properties. The sale allows citizens to buy certificates by paying off the owed tax debt. The sale is conducted in reverse auction style with participants bidding downward on interest rates starting at 18%. The certificate is awarded to the lowest bidder.
A tax certificate, when purchased, becomes an enforceable first lien against the real estate. The certificate holder is actually paying the taxes for a property owner in exchange for a competitive bid rate of return on his investment. In order to remove the lien, the property owner must pay the Tax Collector all delinquent taxes plus accrued interest, penalties and advertising fees. The Tax Collector then notifies the certificate holder of any certificates redeemed and a refund check is then issued to the certificate holder.
A tax certificate is valid for seven years from the date of issuance. The holder may apply for a tax deed when two or more years have elapsed since the date of delinquency. If the property owner fails to pay the tax debt, the property tax deed is sold at public auction.
from www.coj.net
ActiveREI
You are right in Fl if no one out bid your lien amount you will own the property, but the lien amounts are low. A lot of people don't understand that florida is a better state for receiving interest payments upon redemption because it can pay 18%. At the last Dade County auction people were bidding .25%. 100% of those liens will probably get paid or bought by someone else at the foreclosure. What a waste.