Property Tax Liens In Vermont
The interest rate is 12% per annum (actually 1% per month) and the redemption period is 1 year. The highest premium bid wins the lien. The lien may be redeemed within 1 year of the sale by the delinquent taxpayer or mortgagee of the property by paying the sale price plus interest of 1% per month.
This amount is reduced by the premium paid and interest earned on that amount. What happens is that the purchaser of the lien receives the lien amount plus interest and the taxpayer may use the premium amount plus the interest on that to pay off the lien.
Therefore, if you purchase a tax lien in Vermont at premium and it is redeemed, you only receive interest on the lien amount and you do not get your premium back.
Tax collection is handled by municipalities, but they typically do NOT have a great deal of delinquent property sold pursuant to a tax sale. It’s just fairly rare in Vermont to actually make it to a tax sale.
Because delinquency is uncommon in Vermont to begin with, and property owners who are delinquent usually pay up before the sale.
However, you may be lucky enough to find a tax sale in Vermont. Should you purchase a tax lien, then the tax collector will execute you a tax collector’s deed to the property. If, the lien has not been redeemed within the 1-year redemption period. This will convey title from the delinquent taxpayer to the purchaser.
All other liens and claims against the delinquent taxpayer will be extinguished. The purchaser will have to pay any current taxes due. Then you must file the deed with the county clerk and pay a realty transfer fee.
There is not much tax data or tax sale information available online for Vermont. In order to find out if there are any tax sales you will have to call the tax collector. The phone numbers for most of the tax collectors can be found on the municipality’s website.