Second-hand Tax Lien Purchase

3 Replies

Good morning BP members:

I have been investing in NJ tax liens for two years now - I have never had to go through the foreclosure process nor have I purchased any tax liens second hand.  I now turn to you all in the BP community. 

I currently have an offer to purchase a tax lien that the lien holder has since 2010.  The investor needs to liquidate and is not looking to foreclose since they do not know how to go through the foreclosure process.

That said, I am seeing you can help me with some answers to a couple of questions:

I know that a notice (30 days before foreclosure)has to be sent to interested parties (lien holders, homeowners, etc...) in order for them to be held responsible for legal fees.  Would it be best that I send that notice out myself before I pay an attorney to send that letter out?  If so, how do I go about getting a list of interested parties?

1.  Has anyone on here participated in the foreclosure process involving the tax lien?  If so, do you have an attorney in the Central NJ area that you can recommend? 

I am looking for an attorney that is familiar with the Tax Lien foreclosure process. 

2. How do I go about purchasing a second-hand lien from an investor and ensuring the tax lien is changed with both the municipality and the court clerk? Do I have to get a new TLC issued to reflect my LLC's name and re-record the lien with the county clerk?

I appreciate any information you all can provide.

you can get the list of interested parties by doing a title search at you county register of Deeds office. Then make sure the lien is recorded in your name through the delinquent tax office that issues the liens.

Not sure about the for closure process I would contact an attorney.

In SC there is no foreclosure process. If the lien doesn't get redeemed in 12 months the county automatically mails you the deed.

John

@Joe Martella

Joe-

The best attorney in NJ that specializes in NJ tax liens is Mike Pelligrino. Email him at [email protected] He's very responsive. Don't so anything yourself b/c you could mess up the process and cause yourself a problem. He will be able to answer all of your questions. One of the main points to research is if there are subsequent lien holders after the senior lien that you're buying b/c those will also need to be cleared after you take ownership of the property.

@Jamie Bush

Thank you very much.  I knew of Mik and read the book that he published.   I wish that there was a comprehensive book like that for each state.  I will touch base with him.  Thank again.