Tax Lien face value vs. purchase price

[Joshua Terral]

I am using the site LienHub to purchase Tax Liens in Florida and I noticed that on a couple of certificates, the face amount of a lien is lower than the purchase price. I'm scared that if I purchase the lien for $70 and the face amount is only $30, I will only get the 18% interest on the $30 instead of the $70 I purchased it for.

Can someone help me understand this?

[Wayne Brooks]

@Joshua Terral The 18% is on the original/face amount. No one bought it, or wanted to buy it, since it’s only $36…how much time is it worth to collect $7/yr, assuming you do ever collect it?

FYI, most Tax Certificates of this value expire worthless….since to send the property to an auction to collect (if the owner doesn’t redeem, which on such low value lots they probably won’t) you have to pay off all the other Certificates, including the 18%/yr interest, plus a few hundred bucks for the sale, and Hope someone bids enough to cover all your outlays.

Tax Certificates in FL really don’t make a lot of sense for this reason…as the Certificate gives you No claim or preference to acquire ownership.