New York Mayor Holds Lucrative Tax Lien Sale Hostage

Watch this closely. Mayor Bloomberg has put the stops on $25 million worth of tax lien sales. And few people have noticed. What will happen when he opens the sales back up again?

Red Cadillac Fins

There is an interesting [tag-tec]tax lien[/tag-tec] story in the New York Post worth noting.

 

As we all know New York is still one of the hottest areas in the country for real estate investing.  Naturally, that means there will be [tag-self]property tax[/tag-self] delinquencies and a strong [tag-ice]tax lien[/tag-ice] market following that.

 

Tax liens are one of those other, lesser known ways of investing in real estate. Under the right circumstances a real estate investor could do well with money earned from the high interest states. (That’s on the interest.  Forget actually ending up with the property.  That rarely happens).

 

But something strange is going on with Mayor Bloomberg, one of our “all time most fav mayors” and the city’s finance committee.

To make a long story short,  Bloomberg is trying to do a deal.

 

He allowed one of  the most successful property-tax collection programs to  end because he wanted legislators to play ball his way and go after those terrible water and sewage customers who aren’t paying their bills.

 

In other words, you won’t get your tax lien money if I can’t get those water and sewage deadbeats.  

 

Mercy, they collected over $25 million last year alone and this little known tax lien  program.  And it  has brought in over $2 billion since starting up in 1996. 

 

 

Big city politics, don’t you love them?

 

Here’s where some savvy real estate investors should really be paying attention. 

 

Buried down in the story is this tantalizing  tidbit.

 

“But, while few people noticed, there was no such sale this year.”

 

Few people noticed…. Isn’t  that interesting?  Does that mean there won’t be a whole lot of competition?  No info-commercial?

 

Here’s another important point. 

 

“Of course, the unpaid property bills are still on the books, and the city could sell the liens next year.”

 

Does that spell an opportunity? 

 

City Letting Tax $$ Wash Away

 

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