Monday, January 30, 2006

The Nassau County Tax Sale

New York is a mixed state where most counties have deed sales. Very few Counties have lien sales. The five boroughs of NYC do sell liens, but not to individual investors. Their lien sales are only open to a couple of fund companies. Nassau County has a huge tax lien sale once a year. This year’s sale will start on Tuesday February 21, 2006 and will run through Friday February 24th. You can find information on the tax sale on the county treasurer’s web site at

There are some important things to keep in mind if you intend to bid at the Nassau County sale. First of all you have to register in advance and there is a $100.00 fee for each day that you intend to bid. You can register at 9:00am before the sale, or you can pre-register online or by calling the tax sale department at 516-571-5023. You can purchase the updated sale list from Nassau County for $150.00. This list does not give the address of the properties only the tax ID numbers, you will have to cross-reference this list with county assessment information, which is
available on the county assessor’s web site at If you don’t have time for this part of your due diligence, you can buy a detailed property list from LienSource for $500.00 at

Here are some other important tidbits of information that I have gleaned from the County web site and from subscribers in the NY area:

  • You have to pay 10% of the amount due at the sale and the balance is due in 30 days.
  • Even though the interest is bid down (it can be bid down to zero). The maximum interest rate (10% for each 6 month period up to 24 months) is still collected by the county. The difference between the interest bid and the maximum interest is known as the “differential lien” and must be paid to the county by the property owner upon redemption
    or by the lien-holder upon application for a deed.
  • The lien holder may pay subsequent taxes, and will get interest on the subs, but only at the rate that was bid at auction.
  • Liens are sold for school or county taxes but the individual municipalities
    may have their own tax sales, so check with them to make sure that no
    municipal taxes are due on a property that you bid on.

Note: Every effort is made to give you accurate and useful information regarding tax sales.
This information, however, is constantly changing and is only intended to be a guide
for educational purposes. It is no substitute for legal or financial advice, and no
guarantees are implied.

Happy and Prosperous Investing,
Joanne M. Musa,
The Tax Lien Lady
Answering your questions about tax lien investing
Tax Lien Consulting, LLC

Friday, January 13, 2006

Update for Subscribers to Tax Lien Tips Newsletter

Hi, Joanne Musa, The Tax Lien Lady here with an update for subscribers to my Tax Lien Tips newsletter. I have recently changed my newsletter delivery service from Relevant Tools to 1ShoppingCart. As a result of this change you have been asked to confirm your subscription to my Tax Lien Tips newsletter. All you need to do to continue receiving Tax Lien Tips along with other news from about how to invest in tax lien certificates and tax deeds, is click on the link in the confirmation e-mail that was sent to you. You do not need to reply to the e-mail or fill in the form on the confirmation page that you are sent to when you click on the link. I apologize; I didn’t realize that the confirmation page had this form on it. Don’t worry if you did fill out the form, you won’t get duplicates of my newsletter. You will, however, receive my 5-week tax lien investing e-course over again. If you do not want the course again you can simply unsubscribe to it. There is a place to unsubscribe at the bottom of each lesson and it will not affect the delivery of your newsletters.

Keep your eyes open for the next issue of Tax Lien Tips. In the next issue I will feature an article by Texas attorney Darius Barazandeh about tax deed investing in Texas. His article will soon be available on the article page of His course in Texas tax deed investing, Texas Houses for Pennies, is the only deed program that I use to help me with my deed investing. Texas Houses for Pennies is a complete course on how to invest in tax deeds. Although the program is written for Texas tax deeds (which are redeemable deeds) it can be applied to most tax deed states. I have found the information in this course to be very helpful for buying deeds in Pennsylvania. If you are interested in investing in tax deeds or redeemable tax deeds, this program is a must have along with my State Guide.

In my e-book, Tax Lien Lady’s State Guide to Tax Lien and Tax Deed Investing, you’ll find out which states sell liens, deeds, and redeemable tax deeds, and you’ll learn about the differences between them. You’ll learn about the bidding process in each state and who to contact for information about tax sales. You’ll also get valuable links to state and county web sites that will save you a lot time in your due diligence and in searching for tax sale information.

Joanne Musa is a Tax Lien Investing Coach and Consultant who works with investors who want to learn how to buy profitable tax lien certificates and tax deeds. She is the president of Tax Lien Consulting LLC, a consulting firm for tax lien investors.

For more information about Texas Houses for Pennies go to

For more information about Tax Lien Lady’s E-books go to

Thursday, January 05, 2006

Who's On Your Team?

By Joanne Musa,
The Tax Lien Lady

Have you been wanted to start investing in tax lien certificates or tax deeds but don't know where to start? Every successful endeavor requires a support team. Tax lien investing gurus make it sound so easy, you just go to the tax sales and buy a lien or a deed. But it's a lot more complex than what you hear about in those tax lien seminars. In fact, it takes a TEAM to be successful at tax lien or tax deed investing. So who is on your tax lien investing team?

You, the investor, are an important part of your investment team. You are the person who does the due diligence and purchases the tax lien certificates or tax deeds. You may be doing this all by yourself or you may hire someone to do the due diligence and bid at the tax sales for you. But you are making the decisions of what tax lien certificates or tax deeds to buy.

Your Title Searcher. This can be a title search company or an individual who does your title searches for you. Their job, in the case of tax lien certificates is to check on the title of the property before you start foreclosure proceedings. In the case of tax deeds, since you are actually buying the property, you may want to have a title search done before you bid on a property at the tax sale. You definitely need someone who can research property titles for you regardless of whether you are investing in tax lien certificates or tax deeds.

If you are using a title search company, there are different levels of title searches that you can get. For tax liens, you may only need the simplest and cheapest search. If more detailed searches are needed during the foreclosure process, your lawyer can order them from the same title company. Sometimes you may want to use different title companies to do different types of searches on the same property.

Your Lawyer. Most tax deed states do not issue a "warranty deed." This means that you will have to clear the title of the property before you can sell it to someone else. I recommend that you have a lawyer for this purpose. Although it can be done without a lawyer, if you miss any deadline or notification, you could lose your right to the property. The same goes for the foreclosure process on tax deeds. Although there are a few states that make this process easy for you, in most states this is something that you'll want to have a lawyer take care of for you. It's best to get a lawyer that specializes in tax lien foreclosures, otherwise the process could take longer and cost you more money that it should.

Your Rehabber. Properties bought at tax sales are often neglected. Typically if a property owner is not paying the taxes on their property they are not keeping up any maintenance on the property either and it may be in bad condition. If you acquire a property through a tax lien it could have been neglected for a long time since you have to wait out the redemption period before you can foreclose. Unless you know how to do the fix up yourself, and you have the time to do it, you'll need to have someone who can do this for you.

Your Realtor. Once you've acquired a property, whether it be from a lien or a deed, and you've done the rehab, you'll need to sell it or rent it to make a profit on your investment. If you don't have many properties and you have the time, you may want to do this yourself. However, if you are busy buying more tax liens and/or deeds, you may want to hire a realtor to do this for you. This will free up your time to spend on buying more profitable investments.

Other members of your successful tax lien/deed investing team may be your office manager - someone who can take care of all of your paperwork, such as recording liens or deeds with the county and paying subsequent taxes, your bookkeeper, and your accountant. These are things that you may want to do yourself or hire a professional to do, depending on how many liens or deeds you purchase each year.

Regardless of whether or not you've ever outlined all of the activities that are involved in creating and maintaining a profitable tax lien or tax deed portfolio, they do all exist. And if you've been wondering why your investments are not as profitable as you'd like them to be - it could be you've left out an important function and/or member of your tax lien investing team.


Joanne Musa is a tax lien investing coach who works with independent investors who want to learn how to make profitable investments in tax lien certificates and tax deeds. Ms. Musa is the author of Tax Lien Lady's e-books.