What if the municipality forecloses
What happens to the lein I have if the municipality forecloses on the property, and I don't buy it? Who pays off my lein? Does the payoff include interest and/or penalties to me?
Where can I find information on the state of PA, as well as possibly Delaware and New Jersey?
Thanks in advance for any help you can give me.
[addsig]
Hi, I don't quite follow your question. The County has to bring suit against the delinquent home owner Before you can purchase the lien.
Once you have bought the lien, the property owner has a redemption period of various length, depending on the State.
If the owner does not redeem, You have the right to pursue the property, not the municipality.
The process of getting title to the property varies greatly from State to State. In New Jersey, for instance, you have to bring a full fledged foreclosure proceeding against the owner.
In Oklahoma, you merely have to give the owner a 60 day notice or grace period, after which if he still does not redeem, you can pick up a deed from the County office.
In Texas, which is actually a deed state but operates like a lien state; the property title is purchased at the auction with a 6 month right of redemption.
If there is no redemption, the right to redeem expires and you don't have to do anything else, the property is yours!
If the person does redeem, he must pay you your investment back, plus a 25% penalty!
Hope this helps!
Bill Young
[addsig]
Thanks for the reply. As you can tell, I don't know anything about this subject. Let's assume that an owner gets behind on his taxes, say $5000. I am assuming that the municipality whom he owes, will forclose on the property (sheriff sale???), in an attempt to get their money. If the owner doesn't come up with the money, it is my (mis)understanding that I would then "buy" the lein from the municipality, and the owner would owe ME the money, and I would file a lein on his house.
Here, then is my question... if the owner owes a bank money (his mortgage), and he doesn't redeem the property, does the bank just walk away??? Or, do I get the property and have to pay off the bank, or does the bank forclose, and then the bank pays off my lein?
Sorry for the stupid questions, but I am trying to educate myself. Is there a book or website where I could find more information?
Thanks for any help you can give.
I believe you could save yourself a lot of trouble and confusion by starting your research in this area at your local county tax collector's office.
If you are polite and conduct yourself professionally you will be amazed at the amount of useful information you will recieve.
Remember, you catch more flies with honey than you do with vinegar.