What happens if the delinquent taxpayer does not pay the back taxes owed on the certificate I hold, and a year goes by and more taxes are due?
You can purchase another tax lien certificate on the same property the next year if you can pay the back taxes due. Otherwise, another bidder can purchase a tax lien certificate on that property. In some states, your tax lien would then be redeemed by the new tax lien investor. In other states, two tax liens can be held by separate investors. The best idea is usually to pay for the subsequent taxes owed. In certain states like New Jersey, you even receive the full the interest for subsequent taxes even if you bid the interest rate down on the primary taxes.
Related Questions
- What happens if the taxpayer dies before the start of the tax year when the charge to income tax on pre-owned assets comes into force?
- What happens if the delinquent taxes are paid after my bid is submitted but before the batch closes?
- What happens if delinquent taxes are not paid before the redemption period expires?
