Glossary of tax lien and tax deed investing terms used on this siteThere are 150 entries in this glossary.
A sum of money attached to a debt as a punishment for non-payment.
By the year; annually; yearly.
Parcel Identification Number, (a.k.a. Parcel number), (a.k.a. Property number), (a.k.a. Account number), (a.k.a. Abstract number), (a.k.a. Folio number), etc.
(a.k.a. Subdivision Map) A map outlining individual lots within a block or tract of a land.
|POWER OF ATTORNEY||
written documentation authorizing another person, an attorney to act the behalf of another, a legal document that can be limited or grant complete authority
An amount paid to the county/municipality in addition to the lien amount. After bidding down the interest rate, bidders will frequently bid premium in order to win a tax lien or tax deed. In New Jersey, the premium is kept by the municipality and returned to the investor upon redemption of the lien, if the lien is redeemed within 5 years. If the lien is not redeemed within 5 years, the premium is forfeited. In some states, you receive the premium or “over bid” as it is sometimes referred to, with interest or penalties when the lien or deed is redeemed. In other states, you do not get your premium back when the lien or deed is redeemed. The term premium is also used to refer to an amount over the face value paid for a tax lien when purchasing it by assignment from another investor.
Opening bid equals the sum of taxes, interest, and penalties due. Bidding continues in set dollar amount increments, increasing with each new bid.
|PRIOR LIEN HOLDER||
A person or entity that holds a previous tax lien on a property.
|PROPERTY ID NUMBER||
See PIN (a.k.a. Parcel Identification Number).
A report formulated by Title Companies identifying basic statistics of a particular property. Some companies may charge a small fee, but quite often they are free.