SPOOZ Inc (SPZI)

[dukeb]

Half credit, KAM.

The bottom of the screen shot shows that the last payment was made on July 29, 2024. What I failed to notice previously is that there is still an unpaid balance for the 4th quarter of 2023 which is why is still shows as "OPEN."

When a payment is made, the tax payer cannot designate how they want that payment to be applied. It automatically gets applied to any unpaid interest first. NJ municipalities have the option to charge an additional 6% penalty on tax amounts that have accrued interest due of $ 10,000 or more as of year end. That may be why there is an amount in the Adj Billed column for that 4th quarter, although I'm not certain.

The July 29 payment was applied against interest due as of that date for ALL of the past due tax amounts (through the 2nd quarter of 2024.) More of the payment was applied against the year end penalty.

And then the remaining amount of the payment went against the 4th quarter 2023 taxes. The $ 42,120.68 past due amount for that period continues to accumulate interest daily at the rates I cited (18% on the bulk).

There is a process by which the municipality sells its interest (no pun intended) in the open balance in a tax sale. The process is a bit complicated. More info here: https://www.njlm.org/DocumentCenter/View/8541/Tax-Sale-101

Essentially the debt to the municipality is sold to a third party bidder who then makes payment to the town to clear up the debt. The debt purchaser then can file a lien against the property. If that lien remains for two years they can foreclose.

The owners of 510 Hamilton are probably trying to make payments sufficient to prevent their property from being included in a tax sale. It's like the old spinning plates act, though. Eventually a plate may hit the floor and the act comes to an end.

IMO, anyone with options is not going to let a debt accrue interest at an 18% interest rate.

Doesn't the word "PAID" have to appear in the ''status'' column on the right? The last payment they made was on August 1st of last year, correct?