Steps

• 1). Research your local sheriff's sales for homes that will be sold for back taxes. There is often a listing in your local newspaper or a link on your local sheriff's or county auditor's website.
  
  
• 2). Register to bid at auction with your sheriff's office or other designated county authority as noted in the sheriff sale listing.
  
  
• 3). Contact local utility companies to determine if there are any outstanding balances due for water, sewer or electricity on the property. These will be your responsibility if you purchase the home through a sheriff's auction.
  
  
• 4). Have enough cash available or bank financing prearranged to pay the taxes and fees immediately after the auction is completed. Some counties allow a longer grace period-up to 30 days-to complete the transaction after a 10 percent down payment has been made at the auction.
  
  
• 5). Pay the taxes to the sheriff's office or county auditor's office. The department responsible for handling receipt of payments will vary from one county to another.
  
  
• 6). Receive title to the purchase if the previous property owner has not redeemed their property. The time period varies among the states and can even vary from county to county within a state, with some limiting the time allowed for owner redemptions to 12 months, and others extending this time to much longer or shorter periods. If the property you have bought at a tax auction is redeemed, the county may pay you taxable interest on any of your funds that were held.