Calculating repayment for delinquent tax lien

5 Replies

Hi, I purchased my very first tax lien and trying to calculate the repayment amount to send to the original owner, and I'm so stuck. If anyone has some insight I would greatly appreciate it.

@JK Samuel I see this is your first post so welcome to BP

If you purchase the lien then you don't send any payments to the owner the owner sends payment to you. If you mean you want to send a  bill, that is not your job. Normally the city or county will continue to bill the owner and when the owner finally redeems they city or county will send a check to you. 

How he interest is calculated will vary by state so you need to specify where the tax lien is located. You can look up the rate in the states statutes or your counties website.

Thanks for the feedback Ned and David. So to delve a little deeper. I purchased a Fulton County Tax lien in GA.  The documentation states that I should send a letter to the original owner informing them that I purchased the lien and also the amount that will be owed to me, Some of the percentages I understood, some were a little confusing. 

you can buy a tax lien? like buying a 1st position note, but you're buying it from the government?  if they don't pay, do you take their assets, and sell it off to satisfy the lien?

Chris - In GA a lienholder is required to hold the lien that for one year and a day, if the original owner does not satisfy the lien that someone currently holds it then becomes the lien holder's property. I'm currently trying to determine the full payoff amount that will be owed to me since acquiring the lien