Friday, October 15, 2004
Okay, here's the deal. When you buy a property in a tax auction, here's what happens. Let us say you bought the property at the auction on a January first.
You have to pay for the property in five business days. This is when you start to collect interest. You get an unsigned copy of the final decree confirming sale.
February 13: There will be a court date in which the chancellor approves the sale. This begins your countdown of the year. You now own the property.
February: 20: You pay ten dollars for a copy of the final decree confirming sale. You take that to the register of deeds (cause it IS your deed) and register it in your name.
February 14 (the next year): You own the property free and clear. Time to get the place ready for what you plan to do with it.
Now let's imagine that some one comes in and decides to redeem it. There are several people who can do this. Descendents and lien holders are the main two. You have to give it to them, but they have to pay you back plus interest. In Tennessee that's ten percent per annum.
After I was informed of the this I said, "Per what?"
Per annum means over the course of the year. Now lets say that your property gets redeemed on August 13. That's six months and five percent interest. It's probably not right, but let's not get bogged down with math.
August 13: The bank turns in the same amount of money you paid plus five percent interest. Interest accumulation stops. You have thirty days to turn in additional receipts.
September 12: You have turned in your receipt for the ten dollar final decree, your receipt for registering it at the register of deeds, and any other receipts you have. These might include additional property taxes, things you had to fix for code violations, code violations, or many other things. These things you collect no interest on. They have thirty days to pay you.
October 12: Hopefully you've been paid and then you've got your money waiting to be spent again. And you've gotten an additional five percent on your initial amount.
If any of this goes wrong, then you may be in for a big head ache. You may also be in for additional interest. Either way, you're still getting better money than what the bank would pay you.
Now that you know, good luck. I'll tell you tomorrow what stupid thing I did that I realized last Tuesday. (Well, except that everything was closed Monday because it was Columbus Day.)
You have to pay for the property in five business days. This is when you start to collect interest. You get an unsigned copy of the final decree confirming sale.
February 13: There will be a court date in which the chancellor approves the sale. This begins your countdown of the year. You now own the property.
February: 20: You pay ten dollars for a copy of the final decree confirming sale. You take that to the register of deeds (cause it IS your deed) and register it in your name.
February 14 (the next year): You own the property free and clear. Time to get the place ready for what you plan to do with it.
Now let's imagine that some one comes in and decides to redeem it. There are several people who can do this. Descendents and lien holders are the main two. You have to give it to them, but they have to pay you back plus interest. In Tennessee that's ten percent per annum.
After I was informed of the this I said, "Per what?"
Per annum means over the course of the year. Now lets say that your property gets redeemed on August 13. That's six months and five percent interest. It's probably not right, but let's not get bogged down with math.
August 13: The bank turns in the same amount of money you paid plus five percent interest. Interest accumulation stops. You have thirty days to turn in additional receipts.
September 12: You have turned in your receipt for the ten dollar final decree, your receipt for registering it at the register of deeds, and any other receipts you have. These might include additional property taxes, things you had to fix for code violations, code violations, or many other things. These things you collect no interest on. They have thirty days to pay you.
October 12: Hopefully you've been paid and then you've got your money waiting to be spent again. And you've gotten an additional five percent on your initial amount.
If any of this goes wrong, then you may be in for a big head ache. You may also be in for additional interest. Either way, you're still getting better money than what the bank would pay you.
Now that you know, good luck. I'll tell you tomorrow what stupid thing I did that I realized last Tuesday. (Well, except that everything was closed Monday because it was Columbus Day.)
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