A forfeiture occurs when a property tax is delinquent and goes to a tax sale, but a tax lien certificate is not purchased. Therefore, a forfeiture is still an unpaid tax bill accruing interest and penalties and may be vulnerable to a future tax sale at any time. A forfeiture is still a danger to any real estate collateral or investment.
Q: What happens if a tax sale is not redeemed?
If a tax sale is not redeemed, the tax lien certificate holder has the right to petition for the deed on the property. A tax lien trumps all other liens and poses a critical danger to any asset or collateral.
Q: When is a good time to terminate a parcel or loan from my portfolio?
If you’re considering terminating a property or loan from your portfolio on Client Exchange, the best times to do so are when it has been paid off, sold, or charged off. You can terminate these properties via the Termination Requests tab in Client Exchange. A good tip to remember is to terminate these parcel or loans as you go, which expedites the tax payment process.
Q: What is PACE and what are these loans for?
PACE stands for “Property Assessed Clean Energy.” These types of loans are often used to implement energy efficient improvements, such as solar panels, windmills, and other products that help reduce utility bills and promote energy efficiency for property owners. Loans are often financed to help pay for the installation and cost of the new products and are paid back through property taxes. NRTT is the only servicer to provide a standardized solution to manager and report on PACE loan across all states and property types.
Q: What is the difference between Tax Lien states & Tax Deed states?
Tax Lien states hold lien auctions for third-party investors to buy delinquent tax amounts. Tax Deed states have local governments that foreclose on the delinquent property directly. Knowing the difference between these two states, and how the statutes impact your portfolio, makes it easier for our tax experts to track, identify, and redeem delinquent parcels that are threatened by encroaching liens.