HIGH YIELDING GOVERNMENT ISSUED TAX LIEN CERTIFICATES AND TAX FORFEITED REAL ESTATE
The state of Rhode Island is made up of 39 cities and towns each of which has its own administration. The tax collector of each municipality holds a tax sale once a year, but at no set time, and sells the tax liens by issuing a tax deed to the person offering to pay the total amount of taxes, penalties, costs and interest due as of the date of the tax sale.
ONE YEAR REDEMPTION
Property owners have one year following the date of the tax sale in which to redeem their property. After the expiration of one year the holder of a tax deed can petition the superior court to foreclosure the right of redemption. Should the property owner redeem within the one year redemption period the holder of the tax deed receives, in additional to the total amount he paid for the deed, a penalty of 10% if redeemed anytime with six months following the tax sale plus 1% for each month after six months. This can provide an extremely high rate of yield to investors in tax certificates.