Despite plummeting municipal revenues and pinched city budgets, more and more counties are calling off their tax lien and tax deed sales until 2021. The move comes as the country enters the holiday season, which is always a time when this type of event may be postponed simply to avoid adding stress to households during the holidays. However, this year, thanks to COVID-19, health policy is playing a role in the decision as well.
For example, in Madison County, New York, state regulations restricting foreclosures have caused the local government to push its annual tax foreclosure real estate auction for nearly a year, with the 2021 auction scheduled for mid-September. The Madison County deputy treasurer and director of real property said, “Unfortunately, we have to postpone any land auctions until 2021.”
New York governor Andrew Cuomo signed an executive order at the end of October extending his state’s moratorium on COVID-related commercial evictions and foreclosures through January 1, 2021. He had already extended residential foreclosure moratoriums and declared landlords could accept security deposit funds in lieu of rent.
Since most counties in most states have suspended late fees on delinquent property taxes and extended the deadline for payment until December 31, 2020, it is unlikely that there will be many, if any, tax lien or tax deed sales or auctions to attend in the final month of this year. However, that does not mean that tax lien and tax deed investors cannot access other types of real estate deals that also have great margins and low risk! Although the competition for residential properties, in particular, is sky-high in most suburban and rural areas of the country at the moment, working with an investment firm with established lead networks to gain access to off-market deals and with the ability to buy properties in bulk can give you a leg up.
For example, at PIP Group, we allow our investors to review our inventory of existing properties and even help match investors with deals in the PIP Group community when two parties’ goals are compatible. This is a great way to continue working toward your real estate investing goals even when tax sales are not operating, whether you need liquid capital, you want to acquire more assets, or even if you are looking to lend capital.
Most experts agree that 2021 is going to be a year filled with opportunities for real estate investors, but with the market changing constantly in new and unpredictable ways, you need experts on your side. PIP Group has been filling that role for real estate investors for decades, and we would love to discuss your goals and see how we can help.