All Forum Posts by: Mike Kalob

Howdy All,

I just purchased a water lien. I understand I can pay "subs" for any future unpaid water bills on the same property to add to my lien and let it grow.

However, can I also pay other types of subsequent taxes (ie unpaid property taxes, unpaid sewer, etc) on the same property?

Or is it that because I purchased only a WATER lien on that property that I can only pay subsequent WATER bills on that property and not subsequent PROPERTY taxes to add to my one lien on that property?

Thanks in advance.

PS I noticed something different with tax lien sales from foreclosure county auctions..

At foreclosure county auctions, prior to the winning bid, the tax collector names the highest bid and says..

"Going once... twice..... sold"

At the tax lien sale, they don't do this and the tax collector usually just says "sold" after about a 2 second pause of silence.

This led to a mini bruhaha, as one bidder stated her name JUST 1 second AFTER her bid, to essentially tell the tax collector she was the last bid...

..As the tax collector said sold and her name (not giving other bidders time to hear, or respond in a split second), 2-3 other people outbid her, but the first bidder said..

.. "Too late, I already said my name, and tax collector recorded it as sold," which she did.

Is this normal?

Thanks!!

So I went to my first ever NJ Tax Lien Sale couple of weeks back...

ALL of the properties sold at pretty insane premiums.. please see below - tax lien amount on left, premium bid on right..

Tax Lien..............Winning Premium Bid
$2,818.55............$14,600
$14,224.22...........$28,110
$5,382.15............$15,200
$3,221.28............$17,200

etc....etc...etc (These homes were in the $200k-350k range)

What gives?

There were about 5-6 "pros" doing all the bidding while the rest watched..

As pros, I assume they already know that 97% of taxes are paid back, and it's very RARE for an actual foreclosure to take place, so I know they're not trying to bid on the property in hopes of getting the actual home..

That said one can assume, they're trying to earn interest, by paying a huge premium?

I understand a small premium, since one can avail of NJ's 4-6% penalty, and subsequent taxes receive the higher rate...

But since the premiums are well above annual tax rates, and there is a small 2 year waiting period for foreclosing, PLUS it's most likely the mortgage company or home owner will pay off the taxes (so no home gained), I don't see the reasoning for paying such high premiums, given that any "gain" on subsequent taxes would have to fall OUTSIDE the 2 year waiting period due to the high premium amount, but homeowner or mortgage company would most likely have paid off by then.

PS this was in a more "rural" area of NJ, as I avoided the congested counties since I heard it was even worse there (in terms of higher winning premiums).

Particularly in NJ?

I believe in NYC, both parties need to sign a contract before anything is binding, but in NJ if I informally email and say I have $XXX,XXX cash if seller accepts, is it binding or do both parties still need to sign the contract? Thanks.

Thank you.. my bank charges me $25 per certified/cashier's check (hello Citi), do credit unions normally offer this for free?

My bank won't create blank certified checks..

Do you guys bring bank/certified checks in several denominations? I don't want to carry thousands in cash.

Thanks.