Property Tax Auction FAQ – Should an at-risk home fall behind in taxes, or the owner is unable to pay, the county tax collector will foreclose on the home. In order to pay off the debt in question, the home is auctioned off to the highest bidder. This, in a nutshell, is the basic concept behind why you need the right tax sale list. Because depending on the amount that is owed, you could find a home that’s up for sale well below the market value. Like any source of information, tax sale lists can be highly profitable. If you are reading this list, chances are you are highly interested in tax sale information. Armed with the information relevant to your area, you could discover multiple chances to generate real income from tax sale auctions. Whether you are interested in tax sale lists or considering investment probabilities, this tax sale lists FAQ guides you through some of the more common questions.
What are property tax auctions?
At risk properties that have outstanding tax bills are auctioned for a minimum bid. Properties with due taxes against them are the more typical at-risk homes in most counties. Should this outstanding tax bill remain unpaid for a period of greater than the specific time allotted in your county, it will be offered for sale at a public auction. Tax sale lists can help you identify these homes in your area or even beyond. Because of the high demand for tax sale auction lists, however, you will want the most information possible. This enables you to make the right choice on a property or decide to pass.
What is the sale price for the average tax sale?
This amount can vary depending on the situation and the county. Although there can be some variance, this amount is always going to be sold with a minimum requirement. This amount is typically the amount of taxes owed plus all penalties and costs that have been applied to the property. It’s important to remember that when you are bidding on a tax lien sale, you are not bidding on the deed but rather the debt. Because these homes are auctioned at a minimum bid, you need all the information you can get. Tax sale lists can help you gain the edge over the competition and get the information you need.
Where do I bid or can I bid in person?
This can vary but typical auctions are held online in most cases. Internet auctions are easy to interact with as long as you have the information you need to make an informed decision. If you want to get started using one of our comprehensive tax sale lists, you can register here.
What equipment or software do I need to be able to participate?
If you have a tax sale list and want to bid, you will need internet access and a web browser for most online auctions. There are many auction websites that host internal applications capable of handling secure transactions.
What if I win a tax auction?
Should you happen to be the winning bidder, the documentary transfer tax will be added to and collected with, the final sales price. This tax is can vary depending on your county or region. Many cases may even require the sales price to exceed a certain dollar amount. With the right tax sale list, you can find the next chance to buy a home with an under market price tag.
Does a property tax auction eliminate all other liens on a property?
This too can vary on your county and location. Unfortunately, some liens may be dischargeable and others may not. If you happen to own one of our tax lists and want to invest you should thoroughly research outstanding or potential liens, mortgages, or encumbrances.
What happens if I fail to pay the balance within the period indicated?
The properties offered at most auctions are sold to the highest bidder. In the event the highest bidder on an auction fails to comply with said requirements, then that bidder's deposit shall be forfeited to the County in question. Winning bidders who do not submit timely payment on any auction item won will forfeit their deposit as well.
Information about tax liens
The sale of tax-defaulted property by the county tax collector is free and clear of all encumbrances existing before the sale, with the following exceptions:
- Any lien for installments of taxes and special assessments, which installments will become payable on the secured roll after the time of the sale.
- A lien for taxes or assessments or other rights of any taxing agency that does not consent to the sale.
- Liens for special assessments levied on the property that were, at the time of the sale, not included in the amount necessary to redeem the tax-defaulted property, and where a tax agency that collects its own taxes has consented to the sale.
How Do I Find a Tax Sale?
Locating a tax sale auction is not difficult at all. However, there's a huge difference between locating an auction and being prepared for the auction. If you are interested in participating in a tax lien or tax deed sale, the fastest way to find a sale is to contact your county government's office for specific information and details. For information on potential sales and the properties involved, you'll want one of our comprehensive tax sale lists. Have any questions about our tax sale lists or our auction list program? Leave us a comment below and let us know!