What To Expect During A Tax Deed Auction

Posted by | Tax Deeds | Wednesday 13 October 2010 11:18 pm

A lot of people who are interested in buying tax deeds may wonder how do tax deed sales function. Here is a short but detailed walkthrough:

Before a scheduled tax deed auction takes place, the state or the county posts a list of all the properties that will be auctioned. Usually you can find it in newspapers but these days, posting a list in the internet has also become rampant. So if you are resourceful enough, you will be able to get a copy of  the list online (commonly in the county’s webpage). If you want the easy way, you can just contact the county and ask for a list that may come in CDs,  however, this usually comes with fee.

After posting, the public gets at least four weeks to decide and research about the the properties to be auctioned.

During bidding, the interested person will fill out a required form and will  have to claim a bidder number. There may be counties that will allocate these requirements few days before the auction while other counties prefer them during the actual auction day.

Some cases also require a proof of funds while there are also others that require bidders to have at least $2500 cash on hand or a cashier’s check that are to be submitted to the county. The money will then be refunded by the county if somehow the bidder does not win.

There are also some counties which are a less strict wherein they require you to have cash on hand during the auction. Note that counties have specific requirements so it’s always best to contact them and ask about these vital information.

During the auction, the bidding often begins at the amount that is being owed in taxes and goes higher from there. The highest bidder wins and will then receive a Treasurer’s Deed or a Sheriff’s Deed within a couple of weeks from the county.

It is then that the winning bidder becomes the official owner of that property and has the right to take possession of it or sell it.

Tags: , ,

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.