$500,000 in Overdue Property Taxes

property-taxes-on-the-rise

A half million dollars in overdue property taxes are going on the auction block in the Township of Parsippany-Troy Hills, NJ, in mid-June. Ted Thomas, a tax sale investor believes that many of the past due taxes will be paid off before the auction. The remaining ones were available for purchase at a public auction at the Township Hall last week on June 18. New Jersey lets a person buying the tax lien to earn up to 18% interest on the past due amount, meaning that the property owner must pay the buyer for the taxes, penalties and the interest to have the tax debt settled.

“If the owner doesn’t pay the buyer, then the buyer gets to foreclose and take the property. It’s a solid win for the people who go to this auction and have a successful bid,” Mr. Thomas said. “What you should understand is, this is taxes. The government is going to get its money. The government is going to make certain that people who invest in tax sales are protected.” Most of the taxes become redeemed by the property owners and the redemption rate is more than 90% in such auctions. The property that is not redeemed ends up in the hands of the person who bought the taxes.

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