New Jersey Tax Lien Certificates

Written by Genevieve Hawkins
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For many, there is a popular joke that New Jersey has nothing to offer, but those people have probably never looked into New Jersey tax lien certificates. The state best known for its hard-nosed accents and not-so-friendly people has one of the best interest rates in the country on tax lien certificates. With a little investigation, there is a sound return to be had here.

Laws with Tax Lien Certificates

New Jersey is an interesting state with regard to investing in these certificates, in part because the interest rate is government mandated. In most other states, there is an auction for the tax lien certificates, in which the bidder who accepts the lowest interest rate takes home the tax burden. This means that although higher interest rates may be offered, it might not be possible to get them at auction. In New Jersey, however, an 18 percent interest rate is not optional or maximum--it is in place for all certificates.

This alone makes New Jersey a great state to invest in, as 18 percent is one of the highest rates in the country on these certificates. Beyond that, there is a redemption period on homes of two years, meaning you can apply for a deed with non-payment in just two years.

Overall, New Jersey is one of the best states to invest in tax lien certificates, and the laws are similar in each county. With a little luck and a call to the courthouse, it is easy to get into the game. Be sure to investigate any property carefully before bidding on a tax burden.


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