Tax Penalty Liens
Recently, I looked at a deal for a house that had a couple thousand in back taxes owed (no big deal) but a whopping 40K plus in homestead penalties.
Here in Florida, on our primary residence we can get a 25-50K homestead exemption. In this case, the owner had (presumably) lived in the house for many years, her husband died and several years later it appeared that she went to live elsewhere. The home was vacant but the homestead exemption was not removed and was later realized by the tax department, and penalties, late charges and interest were levied and a lien was filed. Title was acquired via tax deed but of course the tax penalty lien survived.
Even paying off the liens, there still may have been room for profit but it was more than I was willing to take on at the time. However, I wondered if anyone has had luck negotiating down penalties like this before.
These don't get sold in the regular tax sales. They just stick around and continue to charge interest. Any guidance for next time?
Thanks!