Question


IMUS B

A tax lien certificate purchaser is threatening to foreclose, what can I do?

I purchased a property 7 years ago and have never been late on my mortgage, insurance or my city taxes. I have no other liens and this is not an IRS or federal issue at all. An investor bought a tax lien certificate from my county from taxes that I didn't realize I owed. I moved out of state shortly after purchasing the property and never received anything from the county in 7 years. Now I am getting a letter from the investor's attorney that I owe approx 6 times what my normal tax bill amount is (after adding interest and fees). The property is actually in a real bad neighborhood and needs a ton of work and I have not been able to sell it now and I've been trying for 6 years. I still owe about $30,000 but if they were to foreclose and auction it I doubt they would get more than a couple thousand for it. My question is 1st of all, can they foreclose on it and if they do, can I buy it back for let's say $3,000 plus pay off the tax lien, and save myself over $20,000 plus interest in the long run? If they go along with this scenario would it be legal? It has been over 2 years since the tax lien certificatge was sold and I can no longer pay the county because my delinquent taxes were paid off by the 3rd party investor. I don't owe the county anymore and I'm current except for that one year (2002).

5 months ago - 3 answers

Best Answer

Chosen by Asker

Someone has purchased your property for the amount of overdue taxes. You have a certain period of time to pay the taxes and regain title to your property. The time period varies from jurisdiction to jurisdiction and can run anywhere from 15 days to one year. You should have received a notice telling you of all this. It was your duty to advise the county or city of your new address. Contact the state, county or city in which the property is located and find out what your outstanding tax bill is. Don't take the investor's word for it. If you want the property, you'll have to pay the back taxes plus any late fees, etc. You must pay the amount directly to the state, county or city, though. Do NOT pay anything to the investor under any circumstances. If you don't want the property, just let it go. Contact your lender and see what your liability is. Sometimes the "investor" must assume all debts and liens against the property. Otherwise, that will be your responsibility.

by Cheryl G

5 months ago

Asker's Rating: 

Other Answers

Normally, you have one year from the date of the tax sale to rescue your property. To do that, you pay the tax authority (city, county, whatever it is) the accumulated tax, interest, and penalties. Once that year is past, the holder of the tax line owns the house permanently, and you have no more rights.

by quizzard123- 5 months ago

If you have not been able to sell it in 6 years, why would you want it back? Just let it go!

by knowitall- 5 months ago