Investing in tax deeds in Monroe County can be a great way to acquire property at a low cost. Tax deed purchases can sometimes allow you to buy properties for as little as $500. These opportunities arise when property owners fail to pay their taxes, and the county auctions off the tax lien or the property itself to recover the unpaid taxes.
Understanding Tax Lien Certificates and Tax Deeds
Tax Lien Certificates: When you buy a tax lien certificate, you are essentially paying off the property owner’s tax debt. In return, you receive interest on your investment, which the property owner must pay along with the delinquent taxes to redeem their property.
Tax Deeds: In a tax deed sale, the county sells the actual property to recover the unpaid taxes. If you win the bid, you receive the deed to the property, subject to any existing liens or encumbrances.
Start Investing in Monroe County, NY
In Monroe County, New York, you’ll find tax deed and lien auctions happening at both city and county levels. Take Rochester, for example, where they host yearly auctions for tax-delinquent properties. But it’s not just Rochester – Monroe County runs similar auctions for its other towns and villages. Start with the county’s website for the broad picture, then zoom in on specific cities for more details.
For example, in Rochester, the auction typically takes place in November. The tax deed sale, also known as “In Rem Tax Foreclosure auctions,” are for properties where their respective owners have delinquent taxes. The starting bid is the total receivables balance due to the City. Properties can be residential, vacant lots, parking lots, mixed-use, and commercial buildings.
There are no pre-qualification requirements, but you must pay a deposit of $5,000 for each property where you have the winning bid at the auction and pay the remaining balance by the following week. The preliminary list of properties is published in a local newspaper for four consecutive weeks leading up to the auction.
The City has no obligation to send notices. If bidders miss the payment deadline, they forfeit their deposit, leading to cancellation and a sale offer to the second-highest bidder. To finalize the purchase, the bidder must sign a Purchase Commitment and meet specific conditions, including current city tax payments, no open code violations, and valid certificates of occupancy for other owned properties. If you need information about the In Rem Foreclosure, aka tax deed sale process in the County, please contact Boylan Code LLP, as they now handle these matters. From there, visit the county website and the city in the county you are interested to learn about the process.
Lien Sales Annually Oct – Nov. Deed Sales Are Held on a Needed Basis and Only on Properties That Were Not Sold at Lien Sale and Were Held by the County for 18 Months
10% Penalty if Redeemed in 1st 6 Months, 15% Penalty if Redeemed in Months 6-12, but Only on the Taxes and Fees Not the Overbid. Overbid Amount Receives 5% Interest.
Redemption Period:
1 Year if Sold at County Sale, Liens Not Sold at County Sale Are Certified to Commissioner and Sold in “Commissioner’s Certificate Sale” With 120 Day Redemption Period
Online Auction:
Yes
Over the Counter:
No but There Is a Second Auction Called a Commissioners Certificate Auction With a Shorter Redemption Period of 120 Days
25% Penalty Per 6 Months for Non Homestead or Special Land Use Properties. If 2 Yr Redemption Period Applies 25% for 1st Year and 50% Penalty for 2nd Year
Redemption Period:
6 Months for Most Properties. 2 Years for Homestead and Special Land Use Properties
Online Auction:
The Vast Majority No, but in 2019, Two Counties (Victoria & Orange)
“Upset Sale” First With Premium Bidding Which Does Not Extinguish Other Liens, Followed by “Judicial Sale” Where All Liens With the Exception of Irs Liens Are Extinguished
Frequency:
Annually Throughout the Year. Upset Sales Typically Held in the Fall. Judicial Sale Typically in the Spring but Could Be Anytime After the Upset Sale.
Interest Rate / Penalty:
N/A
Redemption Period:
N/A
Online Auction:
Very Few
Over the Counter:
Yes Through “Repository” List With County Acceptance
Monroe County
Tax Sale Investing in Monroe County, New York
Investing in tax deeds in Monroe County can be a great way to acquire property at a low cost. Tax deed purchases can sometimes allow you to buy properties for as little as $500. These opportunities arise when property owners fail to pay their taxes, and the county auctions off the tax lien or the property itself to recover the unpaid taxes.
Understanding Tax Lien Certificates and Tax Deeds
Tax Lien Certificates: When you buy a tax lien certificate, you are essentially paying off the property owner’s tax debt. In return, you receive interest on your investment, which the property owner must pay along with the delinquent taxes to redeem their property.
Tax Deeds: In a tax deed sale, the county sells the actual property to recover the unpaid taxes. If you win the bid, you receive the deed to the property, subject to any existing liens or encumbrances.
Start Investing in Monroe County, NY
In Monroe County, New York, you’ll find tax deed and lien auctions happening at both city and county levels. Take Rochester, for example, where they host yearly auctions for tax-delinquent properties. But it’s not just Rochester – Monroe County runs similar auctions for its other towns and villages. Start with the county’s website for the broad picture, then zoom in on specific cities for more details.
For example, in Rochester, the auction typically takes place in November. The tax deed sale, also known as “In Rem Tax Foreclosure auctions,” are for properties where their respective owners have delinquent taxes. The starting bid is the total receivables balance due to the City. Properties can be residential, vacant lots, parking lots, mixed-use, and commercial buildings.
There are no pre-qualification requirements, but you must pay a deposit of $5,000 for each property where you have the winning bid at the auction and pay the remaining balance by the following week. The preliminary list of properties is published in a local newspaper for four consecutive weeks leading up to the auction.
The City has no obligation to send notices. If bidders miss the payment deadline, they forfeit their deposit, leading to cancellation and a sale offer to the second-highest bidder. To finalize the purchase, the bidder must sign a Purchase Commitment and meet specific conditions, including current city tax payments, no open code violations, and valid certificates of occupancy for other owned properties. If you need information about the In Rem Foreclosure, aka tax deed sale process in the County, please contact Boylan Code LLP, as they now handle these matters. From there, visit the county website and the city in the county you are interested to learn about the process.
Important Details for Monroe County Tax Sales
Pro Tips for Success
FAQs
Q: What happens if a property owner redeems their property?
A: If the owner redeems their property by paying the delinquent taxes and interest, you will receive your investment back along with the interest.
Q: Are there any risks involved?
A: Yes, always perform thorough due diligence. Properties are sold “as-is,” and there might be other liens or encumbrances.
Q: How do I find out about upcoming auctions?
A: Visit the Monroe County Real Property Portal and check the Auctions International site regularly.
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