Importance of Tax Delinquent Properties for Investors


As we all know, every real estate property in the United States owes property tax. Despite that fact, the mortgage has been fully paid because property tax is evoked by that specific area where the property is located. When the property owner does not pay taxes, the country can exercise its right to recoup the taxes owed. Every country and state has its own rules & laws related to tax-delinquent properties. Few states adopt the placement process of lien certificates at the tax-delinquent properties, while other states go towards foreclosure process & sold to any investor through auction. 

Great Opportunity for Real Estate Investor  

Real estate investors have multiple options. Purchasing property directly from the county on tax deed sale is an option, and one can also buy tax lien certificates for a gain on back tax payments. It’s not an easy task for real estate investors. Traditional property auctions will marginalize the chances of an effective deal.  

Being a homeowner, if you sell your house in NJ, you face a delinquent property issue. It is an excellent opportunity for the investor to get the deal that he is looking for because owners of these properties are usually desperate and looking for an ultimate solution to their problem. Investors can avail themselves of this opportunity by resolving this issue and helping them out. If an investor gets a chance to work at an early stage of the process with an owner of the delinquent tax property in New Jersey, then a win-win situation could be created by resolving the issue of the distressed owner. 

How It Works 

DNT Home Buyers is a well-reputed home buying company who fulfilled your demands and requirements related to your house. It is pretty similar to the auction process of foreclosure; the owner of the property will get a warning alert of losing the property. The local county & concerned department started their process of issuing notices to the owner to let him know about his due taxes. An additional tax lien certificate is printed on every delinquency notice against the owner and its property. In this whole process, real estate agents earned money by purchasing directly in the state auction sales. 

Tax Delinquent Property in New Jersey

Following are the specifications of tax-delinquent property in New Jersey. 

 – A tax lien certificate is liable to pay the back taxes to the state. There are different rules and timelines for every state. Still, after passing the specific time window t, the investors must auction tax lien certificate purchases. 

 – There is a financial obligation on the distressed property owner to repay the back taxes, including the interest amount to the investor. 

 – It is a sequence of cash flow & also passive income for the investor. 

 – A tax lien certificate will not provide the ownership right of the property immediately to the investor. 

 – The possession of the property goes to the investor in case of the property owner defaults and can’t pay back to the investor.

Delinquent Tax List 

Every City & county is responsible for making a list of these tax-delinquent properties. It is not a big deal if you sell your house in NJ with DNT Home buyers. This list highlights the addresses of properties where the owner couldn’t pay property taxes. It is a public record & maintained in a file with the local clerk of the state. A warning notice is given to the owner; it becomes a matter of public interest.

Competitive Advantage to Investor 

It is a priority of the investor to keep the focus on tax-delinquent properties during the auction. The investor worked closely with the county to know the date & timing of the pending auctions. It will help to understand the rules and regulations of the county and be prepared for bids. Considering partnership with a seasoned investor is a good approach. 


Being an investor, how could you capitalize on this opportunity and make an informed decision at the right time? It depends on your initiative. We discussed thoroughly the tax-delinquent properties, how real estate investors are cashing this opportunity, and what preemptive measures are required. The role of tax lien certificates and financial obligations of distressed properties are discus. How it works and its role in New Jersey are explicitly discussed.

FAQ Section 

Question. Can I sell a house with property taxes owed?

Answer. You cannot sell a house with property taxes owed. 

Question. What happens if the property owner falls behind on property taxes?

Answer.  If it happens, the county/state has the right to sell the property at auction. 

Question. What is the best resource for locating a delinquent property tax list? 

Answer. The best free resource for delinquent property tax lists is through your county & city. 

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