0%, in NJ a property that looks like it won’t pay back it’s lean will go negative, the guy on TV doesn’t talk about intrest rates of -5% does he?
Alot of dough huh. Most tax liens are for small amounts of money, also there are different types of liens. In NJ they auction water/sewer liens seperately (you cannot loose a property over a water/sewer lien is my understanding).
(2718 properties) x ($500 a property) = $1,359,000.
Is this alot of money? MSFT shares trade about $3 billion a day (not including after hours trading).
Good ole boys. Learn the rules, if you bid on this years tax lien how will next years lien(on same property) be handled. If you buy a lien you may be committing yourself to showing up at the auction for years until the property is yours. If this happens the people there will get to know you and you will get to know them. I hope you like good ole boys and they like you.
Posted by Kim K–AZ on January 21, 2000 at 22:53:34:
I plan to attend my county’s annual tax lien auction in early Feb. I have heard from two different reliable sources in the Treasurer’s office that most of the parcels are bid down from 16%-usually to 0%! It seems that a “good ole boys” network is the majority of bidders and gladly accept 0% on their “investment” on the theory that if they eventually forclose on even one property it makes all the other lost interest worth it. Has anyone else experienced this and does this strategy really make sense? BTW there are 2718 properties scheduled for this sale–alot of dough huh?
Thanks for your thoughts.
Posted by Ray (NJ) on January 22, 2000 at 10:40:31:
2718 deliquent r.e. taxes in one COUNTY?!? Wow! I hope that you have a mighty big county.
I’ve never attended a tax-lein auction for the same reasons George mentioned. Too many “good ol’ boys” bidding down the interest rates to 0%-3%. I wasn’t even aware of NEGATVE interest, until I read his post. Not that it’s a bad investment, per say, just not MY cup of tea.