Have an immediate question? Please feel free to browse the answers below to our most frequently asked questions.
What is a Tax Lien?
When a property owner fails to pay federal, state or property taxes, the local governing entity, which could be the city or county, can place a lien against a delinquent taxpayer’s property. With a lien tax sale, the investor does not have total ownership rights in the property until the redemption period is over. Only then can an investor apply for the deed to the property. If the owner pays the taxes before the redemption period is up, the money the bidder invested in the lien is returned with interest, and the lien is released.
What is a Tax Deed?
When a property owner does not pay their taxes due on the property. The public auction that is overseen by the governing body is given the authority to sell the property to collect the delinquent taxes. Thus, transferring proprietorship and interest of the deed to the winning bidder. The successful bidder takes claim of the property and the prior owner loses all interest in the property. Most debt or encumbrance, such as a mortgage is wiped away.
Do I need a college degree or a real estate license to purchase Tax Lien Certificates or Tax Deeds?
No. You need to be able to research the property you would like to bid on at the tax default actions.
Do I need to have good credit to purchase tax default properties?
No. There are no credit checks involved in bidding and purchasing properties at a tax default auction.
How many tax default properties can I purchase at an auction?
You can purchase as many as you can afford. You must abide by the county rules when bidding on properties.
Can I lose money investing in Tax Lien Certificates or Tax Deeds?
All investments come with risk. It’s important to research thoroughly to make good investment decisions.
Can I purchase Tax default properties in my business name?
Yes you can. Always check with the county for what they require.
What is the minimum bid amount I must pay at a tax default auction?
Minimum bids vary from county to county and property to property.
Can I just show up to the auctions and bid on properties?
In most counties, you must register to bid on tax default properties. Each county has their own rules and regulations.
Can I bid on a property that I did not research?
Yes you can bid on a property that you did not research but it is not advised.