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Tax Auctions

 
Sauceress
(@Sauceress)
Advanced Member

Did anyone actually read the article in the Daily News about the possibvel Tax Auctions.

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Topic starter Posted : May 28, 2011 7:00 pm
sloop jones
(@sloop_jones)
Advanced Member

it is online at the daily news website. I couildn't find the list of properties online at the DN site.
sloop

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Posted : May 28, 2011 10:13 pm
Ronnie
(@ronnie)
Trusted Member

The list was for folks who owed taxes. If they don't pay them within a certain time of that publication they will be taken to court and relieved of their property. Then the sale will happen and they will then have 6 months right of redemption I believe, just like a foreclosure.

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Posted : May 28, 2011 10:30 pm
sloop jones
(@sloop_jones)
Advanced Member

the list will be published here.

lt. gv office website
sloop

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Posted : May 28, 2011 10:43 pm
Molly
(@Molly)
Advanced Member

Ok, now I'm a little worried. I've been to the assessors office several times over the past 18 months in regards to a property tax bill. I've owned my property for over 3 years now and have yet to get a tax bill. I did check the delinquint list and thank God I'm not on the list to be auctioned. I've mentioned this before on this forum but it's been a while, how far back are they on assessing taxes?

Thanks,

Molly

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Posted : May 28, 2011 11:16 pm
Jumbie
(@ohiojumbie-2)
Trusted Member

Only those who are 10 yrs or more deliquent are listed.. Since the last RE tax bills sent out this year were for 2007, I assume that means property taxes that haven't been paid since 1997 got put on this list.:You have 30 days to pay up or property will go up for auction. But just like anything this gov't does, there probably are names (commercial & private) on the list of deliquents that are "bogus". For example in today's AVIS a person is quoted that his company that is listed doesn't owe the $75K . He said he his business leases the property. Since he is current on his lease, the "owner" who was not mentioned is on the hook to prove taxes are paid or not paid.

Jumbie -STX

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Posted : May 29, 2011 12:02 am
billd
(@billd)
Trusted Member

Something is wrong Molly.

You have the lot and block number. Go down and tell them that you want to pay the bill. The tax bill is probably going to the previous owners.

Billd

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Posted : May 29, 2011 1:48 am
Molly
(@Molly)
Advanced Member

Thanks for the responses, didn't mean to take over the thread but had a moment of panic when reading this and knowing that I haven't paid any property taxes for 3 years even though I've tried and have the best intentions to.

Jumbie, 10 or more years delinquent is amazing! To think of how much better funded the local schools would be with these assets that are all due. Sad, just very sad.

billd, as wise as always. I think that I will contact the title insurance company that did our real estate closing to re-research the title to be certian that all is well.

Thanks again all!

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Posted : May 29, 2011 3:20 am
East End Doug
(@east_end_doug)
Advanced Member

If the properties do go for sale at the tax sale what would be the" buyers" rights to ownership of the property.

Doug

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Posted : May 29, 2011 10:02 pm
Lizard
(@Lizard)
Trusted Member

The Holder of the tax lien certificate, had bid with the lowest interest rate to win the certificate . the owner of the property has to pay the tax lien certificate holder within 2 years of the award (back tax's plus interest). After the 2 years are up the holder can start a foreclosure proceeding. If there is a mortgage on the property the mortgage holder will bid on the property and wipe out the tax lien holder. Very risky business.

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Posted : May 29, 2011 10:51 pm
stcmike
(@stcmike)
Advanced Member

Lizard,

Investing in tax certificates is not a very risky business, it happens every day in the states. I have both owned and been subject to owing tax liens. It really is a simple process, HOWEVER one should not buy a tax certificate unless they are willing to owning the property. I have friends who buy certificates sight unseen just to get the interest rate payoff and that strategy has worked out well for them. I am a little more conservative I rather see what I am bidding on. But all in all not a difficult process. Of course anything dealing with the VI govt tends to be more difficult than need be.

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Posted : May 30, 2011 12:35 pm
Lizard
(@Lizard)
Trusted Member

stcmike,
One does not buy a Tax Lien Certificate for the benefit of interest, You can do better with a US Savings Bond. You bid on the certificate via a Govt Auction. Auctions do not happen every day in the states only once a year in a municipality, County, Parish or State. I think you are talking about Notes secured by a mortgage against Real Estate.

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Posted : May 30, 2011 1:51 pm
stcmike
(@stcmike)
Advanced Member

Lizard,

With all due respect you are incorrect in regards to the reasons people buy certificates especially these days when the banks and the federal gov't CDs and treasury bills are paying less than 1%. The vast majority (especially the low dollar amounts) of the taxes will be paid back by the property owner. When the property owner pays off the lien (which includes interests) that money goes to the tax certificate lien holder. Dependent on the municipality (I don't know the VI regulations) the interests could be over 20%, which is way over the current CD/Treasury bond rate. Auctions do happen regularly, one of the municipalities I deal with has qtrly auctions. I am on various municipalities mailing list and they typically are quarterly. When you stop and realize how many municipalities are now very aggressive in their tax collection efforts you realize how big the market is for this type of investment. There are private hedge funds that specialize in this sort of transactions however any regular citizen can participate in this market. I currently own tax certificates for several municipalities in California, Florida and New Jersey. I have been investing in tax sale certificates since the early 90's, there are plenty of books and Internet sites where one could do research in tax sale certificates. Like any other investment one should do their homework first. Its not a get rich vehicle but something people should consider in diversifying their investment portfolio.

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Posted : May 31, 2011 12:11 am
Lizard
(@Lizard)
Trusted Member

The State of Florida has Tax Lien Certificate sales in May and June each year not quarterly, The State of NJ Has has Tax Lien Certificate sales in June once a year. Most of the properties in these states have a1st and 2ND mortgage on these properties.Lenders have taken a beating on these properties via short sales. They will foreclose on the properties and wipe the tax lien certificate out. Your principle interest and penalties will be tied up for two years at least and you may never recover your time and investment.

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Posted : May 31, 2011 1:25 am
stcmike
(@stcmike)
Advanced Member

Tax sale certificates only done by the states but also by county and city municipalities. Not all tax liens are for 2 years. Most liens are paid by the homeowners, you get paid the principal owed plus interest. If its not paid the lien holder can start the foreclosure process. This is really not a rocket science investment. I am not a rocket scientist, I currently own several tax certificates paying me over 15%. Where in this day and age can you get a 15% return plus the possibility of the getting the property (which I don't want). I and several of my co workers have been in and out of tax liens for many years now. I can honestly say I and they have never lost 1 cent on these investments, I only wish I could say the same for my other investments like stocks and real estate.

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Posted : June 1, 2011 11:27 pm
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