If you want to have a lot of options at a tax lien sale, then Binghamton, New York, is probably not the town for you. According to a recent report put together by Scott Snyder, the city’s tax assessor, total property tax exemptions are equal to 33.8 percent of the $1.8 billion assessed value in city property. As in most areas, churches, hospitals, non-profits, schools and government buildings are exempt from property taxes. Binghamton adds to this veterans, disabled citizens and low-income elderly[1]. This population makes up nearly 5 percent of the assessed value in the area.
The exemption report is raising hackles all over on both sides of the issue, but in reality, these numbers are not that unusual. In fact, Snyder says that Binghamton is “at or below the other levels I’ve seen [for other upstate cities serving as county seats,” while Teri Rennia, a democrat from the district, says that if these exemptions are removed then it will hurt the veterans and the elderly since the other exemptions are constitutionally-mandated.
Do you think that these exemptions are reasonable? Would you invest in tax liens in an area with these types of exemptions?
Thank you for reading! Your comments and questions are welcomed below.
[1] http://www.pressconnects.com/article/20101004/NEWS01/10040350/Report-finds-one-third-of-Binghamton-property-is-tax-exempt
An Iowa man who allowed relatives to live in his Algona, Iowa home in return for paying taxes, insurance and maintenance on the property has successfully reclaimed the deed to his property following a lawsuit in which he claimed that notices that property taxes went unpaid were not effectively delivered[1]. The man, Charles Dearchs, who moved to California in 1991, learned in 2005 that a team of investors had purchased the deed to his property at a tax sale. He petitioned in 2008 to have the tax deed voided on the grounds that he had not been “properly served with his right to redeem.” He was denied, but appealed, and his appeal was granted in September 2010.
If you are a tax lien investor, you must remember that you are not only responsible for your own collections if you buy a lien instead of a tax deed, but you also may end up dealing with the local government’s failures to deliver information appropriately. Have you ever encountered this type of difficulty personally, or are there areas that you avoid because they are not known for effective handling of their liens?
Thank you for reading! Your comments and questions are welcomed below.
[1] http://www.globegazette.com/news/local/article_5adf6f9a-bc82-11df-99e0-001cc4c03286.html
When you first hear that a local Pennsylvania property tax lien sale netted over $400,000 this week, you might be thinking, “Wow, those properties sure were not very cheap.” However, nearly 800 properties were up for auction at the sale, and many bids were actually lone ones starting right at the amount of back taxes and penalties owed on each property[1]. One frequent tax bidder purchased 25 properties for a sum total of $178,744, while a first-timer bought a family cabin back for “sentimental reasons.”
Both residential and commercial properties were for sale, and many investors were there to “clean up the titles” of properties before the resale.
Would you buy a tax lien property for personal reasons, or stick only to business?
Thank you for reading! Your comments and questions are welcomed below.
[1] http://www.timesleader.com/news/Property_tax_sale_nets__400K_09-29-2010.html