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

Detail	Information
Tax Sale Type	Tax Lien Certificates and Tax Deeds
Typical Sale Date	Varies; check the County Website for current schedules
Redemption Period	Varies; typically up to 2 years for tax liens
Interest Rate	12-18% for tax liens
Bid Procedure	Competitive bidding: The highest bidder wins
Deposit	Typically, $5,000 per property for winning bids
Auction Site	Auctions International
County Office	Monroe County Real Property Tax Services, 39 W. Main St., Rochester, NY 14614; Phone: 585-753-1157

Pro Tips for Success

• Know the Process: Familiarize yourself with the county’s sales process by visiting the official websites and reading all available resources.

• Due Diligence: Always inspect properties and research their background before bidding.

• Network: Connect with local investors to gain insights and tips.

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.

Useful Links

• Monroe County Real Property Portal
• Monroe County Finance Department
• Auctions International

Need a Hand?

If you need personalized guidance or a tailored investment plan, book a call with us and get a free customized Tax Lien & Deed investing plan to save you years of trial and error.

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