Today I’m answering your questions about Escambia County tax deed sales, and the topics I’m going to cover are:
- Step 1: Florida Holds a Tax Certificate Sale
- Step 2: Florida Will Sell the Tax Lien Delinquent Property at a Tax Deed Auction
- Florida Holds 2 Types of Auctions for Real Estate Delinquent on Property Taxes
- Buying Property for Back Taxes at an Escambia County Tax Sale
Most people don’t realize this county is the home of the Florida legislature, and the capital of Florida is Pensacola (Tallahassee).
I’m Ted Thomas. I’ve been involved in the tax lien certificate and tax defaulted business. These are properties that the owners have failed to pay property taxes on. Not paying property taxes has major consequences in Florida.
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Step 1: Florida Holds a Tax Certificate Sale
Florida, in my opinion, is a benevolent state. The legislature allows all 67 counties to first auction tax lien certificates to the public. The issuance of a tax lien certificate makes life a lot simpler for the property owner which I will explain.
Investors purchase tax lien certificates at public auctions, and the property owner is allowed to remain on the property. There is no immediate eviction of the property owner. However the property owner now has a lien, an encumbrance, in the amount of the defaulted taxes attached to the property. This lien is due within two years’ time.
95% to 97% of property owners will come forward and pay the delinquent amount of the tax lien to the county. This is referred to as redeeming the tax lien certificate. In other words, they pay the taxes.
The property owner pays the amount of the tax lien certificate to the treasurer for a minimum of 100% plus a designated interest rate which was established at the tax lien certificate auction. This could be as high as 18% in Florida.
Step 2: Florida Will Sell the Tax Lien Delinquent Property at a Tax Deed Auction
Now let’s talk about Escambia County tax deed sales. The Escambia County tax deed sale is really an auction which will take place shortly after the tax lien certificate two-year period expires.
The certificate owner will request that the county conduct a tax defaulted property auction. Properties at the auction will be sold to the highest bidder, and the county treasurer will delete the mortgage or deed of trust loan prior to the delivery of the county deed.
Florida Holds 2 Types of Auctions for Real Estate Delinquent on Property Taxes
For clarity, Florida will have two auctions, the first of which is a tax lien certificate auction that allows the property owner up to 2 years to redeem the tax lien certificate.
If the property owner fails to come forward and redeem the certificate by paying the delinquent taxes and the interest that has accrued, then the certificate holder may request a tax deed auction.
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Buying Property for Back Taxes at an Escambia County Tax Sale
Escambia County is a small population county which translates to dozens of properties offered up for auction at Escambia county tax deed sales.
The county sells single family homes, small farms, small apartments, and many types of land. I would estimate that 25% of the properties listed on the auction site are vacant land of different types.
Rural counties, as well as large population counties, will produce auction lists which are obtainable at the county website or from the local newspaper.
Properties are sold at Escambia County tax deed sales with starting bids of very close to the back taxes, and the treasurer will have deleted the mortgage or deed of trust loan.
Much of this tax defaulted real estate is going to be sold with starting bids of 10 to 20 cents on the dollar. Anyone with the funds may buy at tax defaulted auctions. The challenge usually is figuring out how you’re going to sell the property.
You could sell them using eBay, Craigslist, the multiple listing service (MLS), Zillow, and Trulia, sitting at home on your computer.
We hope you enjoyed Ted’s lesson, “How Escambia County Tax Deed Sales Work”
Escambia has a smaller population, and at Escambia County tax deed sales, you can expect to find dozens of properties up for auction.
Florida does things a bit differently. First Florida will hold a tax lien certificate auction. If the certificate is not redeemed within the 2-year redemption period, then the certificate holder can request a tax deed auction.
At the tax deed auction, the bidding begins at the back taxes, and the property is sold to the highest bidder. If the certificate holder is not the highest bidder, the certificate holder will still receive all of his or her money back plus the interest.
If you’d like to know more about tax delinquent property investing, Ted Thomas provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops, web classes, and personal coaching with certified coaches.
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Ted Thomas is America’s Leading Authority on Tax Lien Certificates and Tax Deed Auctions, as well as a publisher and author of more than 30 books. His guidebooks on Real Estate have sold in four corners of the world. He has been teaching people just like you for over 30 years how to buy houses in good neighborhoods for pennies on the dollar. He teaches how to create wealth with minimum risk and easy-to-learn methods.