What You Should Know About Tax Deeds

Posted by | Tax Deeds | Friday 24 September 2010 11:49 pm

What is a tax deed sale? A tax deed sale is not similar to a foreclosure wherein it is held by a financial institution because of unpaid mortgages. With the tax deed sale, the sale is being held by the government agency as it takes a real estate as a possession due to the non-payment of the owner of his back taxes. So the house will be sold in an auction wherein its minimum bid is calculated based on the amount of tax that is owed to the government, the interest that is accrued on back taxes, and of course, the cost of the sale.

Now a tax deed is nothing like a tax lien since a tax lien certificate is issued for the amount with interest while the owner’s tax refund checks can be garnished so as to collect the back taxes. There are states wherein the owners can get arrested or can get fines for failure of payment of the property’s taxes. If these tactics won’t work, the government will then ask permission to have the property on sale at an auction.

Take note, each state is different as some states are tax lien states while the others are tax deed states. There are even states that are a mix of both. So if you are indeed interested in purchasing properties at auctions, always conduct research into the procedures and rules of the specific state or county.

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