Buying a Tax Lien Certificate

[Susan Bearce]

Hi Everyone,

I am looking for any guidance on purchasing a Tax Lien. My husband and I were leaving a Barbeque yesterday and saw a "For Sale" sign on a property that looked like a good investment so we took pictures and when I got home I checked on the property on the registry of deeds. I saw that there is a Municiple Tax Lien Certificate filed and I have heard that you can purchase these. Is it as simple as just calling that Town that put the Lien on the house and offer to buy the Lien Certificate for the face value? I believe there is a 90 day grace period and that will be coming up on May 1st. If the house doesn't sell and the Lien is not paid (if I am able to purchase it) would the house become my property????

[Tom Yung]

@Susan Bearce

I have never been to your part of town or MA nor I have participated in your county tax sale.

This limited info below may help you. I will suggest  calling  the tax commissioner office( may have a different name for your county). Asking them when will be the next auction. Is the parcel that you have interest coming up for auction or someone bought the TLC already.

MA is a redeemable tax deed state.

 Massachusetts tax deed auctions are held on a local municipality level at various times.The municipalities take ownership of the delinquent property prior to the auction and then sell the property at auction. Selling process of the tax delinquent properties varies depending on the taxing municipality .Some municipalities will hold some type of public sale while others may retain the property for municipality use. After the sale, the successful winning bidder receives a tax deed, which is subject to a six-month redemption period. If the property owner redeems the property during the six-month redemption period they must repay the purchase price of the tax deed plus 16% interest.Otherwise the purchaser of the tax deed will receive the full deed to the property at the end of the redemption period. 

Also MA is a premium BID state. I do not know whether the statue allows interest on premium; spent few minutes & ask for the person/department that looks after tax delinquent sales. Also ask if they have a OTC(over the counter) lists. The property that you are interested may be on those lists.

While you are calling the county office, ask them if you need to clear title after you receive the tax deed.

Hope this helps.