Tax lien property in Bankruptcy

[Greg Johnson]

I bought 4 tax certificates on one property in Connecticut. The property just went into bankruptcy.  I learned my money will be tied up for up to 6 months. During that time I will not be accuring any interest. Is this true and what do I do from here?

Sincerely 

Fustrated

[Charlie Vess]

Greg - I had a similar situation with respect to Tax Liens that were purchased in Alabama. This led to conversations with the BK Trustee (representing the former owner). Two questions that the Trustee raised were: 1) how much was the properties worth and 2) what would be the payoff? For the payoff, I packaged the deal with all expenses including the interest that would accrue. They ultimately chose neither. After the BK was finalized I then engaged an attny to obtain releases from all previous lien holders. All said n done it took roughly 3 yrs to finalize. My overall costs are approx $17K. My anticipated return should be around $70K.

Best!
Charlie