The amount required to redeem a lien prior to issuance within 10 days is which of the following?

Study for the Tax Collection Exam with flashcards and multiple choice questions, each with hints and explanations. Get ready for your exam!

Multiple Choice

The amount required to redeem a lien prior to issuance within 10 days is which of the following?

Explanation:
When redeeming a tax lien, the amount due is the purchase price the lien bidder paid at sale plus the interest that has accrued up to the redemption date. Even if the original lien amount is smaller, the investor’s return comes from what they paid plus interest, so the redemption payment reflects that base plus interest, not the original lien amount. So within a 10-day window, you’d owe the amount sold plus accrued interest to date of redemption (for example, $2,000 paid at sale plus $100 in interest = $2,100 total). Penalties or extra fees aren’t the primary component of the redemption amount unless specifically charged by the authority.

When redeeming a tax lien, the amount due is the purchase price the lien bidder paid at sale plus the interest that has accrued up to the redemption date. Even if the original lien amount is smaller, the investor’s return comes from what they paid plus interest, so the redemption payment reflects that base plus interest, not the original lien amount. So within a 10-day window, you’d owe the amount sold plus accrued interest to date of redemption (for example, $2,000 paid at sale plus $100 in interest = $2,100 total). Penalties or extra fees aren’t the primary component of the redemption amount unless specifically charged by the authority.

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