Is it worth betting on utilities in tax sales?

Crimes other than property taxes can be sold at a tax sale. This includes unpaid utilities, sewerage, water or garbage bills or any special estimates. In principle, all unpaid bills that are due to the local government (municipality, municipality, county or tax district) and remain unpaid can be sold at the tax sale as a tax lien. Just as with unpaid taxes, the holder of the lien is in the first place and can seize the property if the lien is not redeemed within the redemption period. The holder of the right to pledge also has the opportunity to pay the subsequent utility fees (and even the subsequent taxes) if the property owner does not pay them on time.

Many states allow you to pay subsequent taxes and collect maximum interest or default interest on your subscriptions. The exception to this is Florida: Florida counties do not allow you to pay subsequent taxes, and they will sell the lien each year when taxes are sold. So you don’t get that opportunity there, you just have to try to buy a lien every year.

Utility bets can be a good investment for several reasons. First, the arrears on these arrests are usually less than those on taxes, so you need less money to buy a utility pledge than you do to buy a tax lien. And because these seizures are smaller, institutional investors rarely bid for them, so they are a little less competitive than larger tax bets. Second, when you have a utility bill, you can pay subsequent taxes as well as subsequent sewer fees if the owner does not pay them. I had several liens, which I initially bought as small sewers, and later, when the property owner stopped paying taxes, I was able to pay the overdue taxes as well as the amounts of the sewers. This added thousands of dollars to my original bet. Since this was a bet in New Jersey, I was able to get 18% of all my subsequent tax payments!

Buying utility rights is one of the strategies I use to keep my wallet of double-digit taxes !!