Tips for Buying Delinquent Tax Sales
- Finding Your Dream Real Estate
You need to contact your local county courthouse and find the tax collector's office. Contact the tax collector and ask for the date of the annual tax lien sale. Next, ask this person where you can purchase a pamphlet with maps and addresses of all the properties slated for auction that year as well as the opening minimum bid. You can generally purchase these materials at the county courthouse for around $10.00. - Preparing for the Tax Lien Sale
After you review the properties in the pamphlet, decide which prospective parcels interest you. This requires "due diligence", which means that you need to visit in person each piece of real estate that you are considering bidding on. After you determine which parcels you are seriously considering, contact a title company in the same county as the property that you are investigating and have them conduct a "title search". This reveals the status of the property and shows any outstanding debts in conjunction with it that you as the buyer and prospective new owner will assume responsibility for. All auction sales are absolutely final and you cannot get a refund or exchange it after you buy a property. - At the Auction
After you find the tax lien property that you want and perform your due diligence, you must now prepare for the actual sale. The tax lien sale is a cash sale. Bank loans, credit cards and payment plans are not acceptable forms of payment at a tax lien sale auction. You must have the entire amount that you intend to bid in cash prior to the sale. Your funds must be verified at the auction before the sale takes place. Extended lines of credit are accepted but must be verified at least 10 days in advance of the sale. Contact your county's tax collector to find out the details on financing. Usually, the county web page will feature the auction and all the specifics pertaining to it. - Paradise for sale
The day of the auction you should arrive early to sign in and have your funds verified. You then will receive an auction number on a card stock piece of paper. The county tax collector will describe the rules and procedures of the auction. The parcels are auctioned off in the order that they appear in the pamphlet you bought at the courthouse. To bid, you need only to raise the card with your auction number on it each time you want to bid. Bidding usually occurs in increments of $1.00 to $100.00. Never bid more than you possess. It is a felony crime to bid on property if you don't have the money to pay at the end of the auction. If you do this correctly, with due diligence, you can purchase the real estate of your dreams at a fraction of the regular price and take possession of it in a matter of weeks. This is a great way to invest your money!
