Ok I need some help here from the tax lien pro’s…My wife and I were house hunting today in LI NY…I couldnt help but think about business while we were checking out these homes…After doing a little research on the Nassau County website I found out that investors are allowed to purchase tax liens at the Feb 15-18th,2011 tax sale…My questions are many so I will post them and anyone that can help I appreciate it…
- How long can a person NOT pay their taxes until the house goes into foreclosure?
- It says that every 6 months there is an allowable %10 interest penalty allowed to be added to each lien…So is it fair to say that over 6 months is %20?
3.Anyone have references of LI attorneys working with investors buying tax liens in Nassau County
The area Im concentrating on is Mill Neck,Matinecock,Upper Brookville,Muttontown,Brookville…The reason why, these areas are considered Gold Coast and extremely affluent areas…Yet they have been hit pretty hard from the downturn on Wall Street’s job market and Hedge Fund industry…In this relatively small geographic area there are something like 600 homes for sale…And the median tax bill per home is like $25,000-$30,000 per home per year…The homes are typically around 1.2-4.0 range…I just figured there has to be a good portion or atleast a small portion of the 600 homes on the market in arrears with these high property taxes…I’m assuming that most investors would be more interested in the free and clear homes tax liens vs the homes that are upside down or mortgaged up high…Any advice would be helpful and I have the number to call tomorrow but I doubt the tax office will answer all of my questions…ty for any responses…
Notice To Tax Lien Purchasers
The following amendments to the Nassau County Administrative Code have taken affect with the February 2001 tax sale.
Sec. 5-44.0 of the NC Administrative Code requires the charging of a $100.00 per day registration fee for each person who intends to bid at the tax lien sale.
Sec. 5-39.0(b) “For tax liens purchased in 2001 & thereafter, the rate of interest payable by the property owner…shall be the maximum rate as set forth in section 5.40.0.” That section states that the maximum interest & penalties which a tax lien may carry is 10% of the purchase price for each 6 month period starting with the date of tax sale through the end of the 24th month.
The portion of the 10% interest for each lien sold that is owed to Nassau County will be called the “Differential Lien.” The “Differential Lien” will be included in all redemption payments.
The “Differential Lien” must be paid separately to Nassau County 1) by the Tax Sale Buyer as part of his tax deed application or 2) by the property owners when a Tax Sale Buyer surrenders his lien for cancellation.
Purchase of Lien:
The lien you have purchased must be fully paid for within thirty days of the date of the lien sale. You will be notified by the County Treasurer’s Office by regular first class mail within 10 days of the due date. Failure to pay the ninety percent when due will result in automatic loss of the lien plus your total down payment, which consists of the required ten percent down payment (rounded up to the nearest dollar) together with any additional sum provided with that required down payment. Requests for extensions of time to pay the ninety- percent balance will not be considered.
Redemption:
All liens purchased at the 2008 sale may be redeemed by the property owner or interested party at any time prior to either the Treasurer’s issuance of a tax deed or the commencement of a foreclosure action in court. Neither of these events can occur before February 17, 2011 at the earliest. All redemption payments will be charged the total interest rate due at the time of payment. The County Treasurer will pay you the appropriate interest for your lien paid by the property owner or interested party. The interest collected will be in accordance with the provisions of the Nassau County Administrative Code which call for the same rate as bid at sale for the first twenty-four month period calculated at six-month intervals beginning February 17, 2009. In cases of one-year hardship extensions, interest on the lien for the 25th month through the 36th month will be at five percent per six-month period of time.
Notice to Redeem
When serving Notices to Redeem, the Office of the County Treasurer will insist on strict compliance with all applicable sections of the Nassau County Administrative Code. Copies of the Code and the recent amendments thereto, are available at the Office of the Clerk of the County Legislature, located on the first floor of the County Executive Building, One West Street, Mineola, New York.