HOW DO PROPERTY TAX AUCTIONS WORK?

How do property tax auctions work for serious bargain hunters? The bargain hunter’s dream comes true at the property tax auction. 

Everyone wants a deal on real estate property.  It’s not always possible unless you have some special skills or maybe even multiple skills.

My name is Ted Thomas, and I’ve been involved in bargain basement real estate for decades.  I’m about to show you a little-known but highly lucrative market.

Some people rave about real estate foreclosures. Others are excited about bank-owned properties.  And for sure, there is a market in probate properties, which are announced from time to time. 

I have a free gift for you, a special Master Class that will show you how to profit with tax lien certificates and reveal the secrets of tax defaulted properties and auctions. Get your FREE gift today.

HOW DO PROPERTY TAX AUCTIONS WORK? – A ROUTINE PROCESS

How does a tax foreclosure work?

From my perspective, tax deed properties are the best bargains because the local government has standardized and made the process down to earth and relatively easy to understand. 

The whole process is routine, and it is always conducted in a public arena.  Sometimes, it may be on the courthouse steps.  All the tax deed sales that result are made public, and the process is controlled and maintained by a local government. 

HOW DO PROPERTY TAX AUCTIONS WORK? – A 200-YEAR-OLD BUSINESS

Today, I’m answering your question, how do property tax auctions work?  

I’m about to give you all the details on how to buy property with delinquent taxes, and I’m qualified to do so because I’ve been involved with tax liens and tax deeds for the past 30 years. 

This business was created over 200-years ago when the states discovered that people don’t like to pay property tax.  The state legislature and the county administrators created an effective collection process.  

All states authorize counties to levy taxes and follow up by collecting property taxes that are assessed by the tax collector who works for the county treasurer.

HOW DO PROPERTY TAX AUCTIONS WORK? – THE COUNTY’S ROLE

Unfortunately, not all property owners are able to make the property tax payments.  This causes big problems at the local county.  

The county government will give the property owner multiple due process notices of default, and the county treasurer will explain in detail the consequences of default and nonpayment of taxes. 

Notices may be delivered by the deputy sheriff for the treasurer.  At any rate, the property owner will be served with a notice.

The state legislature has given the county, usually the treasurer, the mandate that they must levy and collect property taxes.

If the owner is unable to pay property taxes, the county treasurer will seize, that is, the treasurer will confiscate the property and evict the owner or tenant.  

That eviction process will be followed by the county treasurer auctioning the property to the highest bidder at a public auction. 

HOW DO PROPERTY TAX AUCTIONS WORK? – BARGAIN REAL ESTATE

The public auction and tax sale properties list are announced in the local newspaper and on the county website. 

Anyone can bid at the auction.  However, a person should study the rules prior to attending. 

Nationwide, this is a big business for bargain hunters who know how to research and evaluate and sell discounted distressed properties.  

About 30-years ago, I discovered this almost unknown lucrative business.  It’s perfectly legal and ethical and has been in continuous use by local counties for 200 years.  

Once I discovered I could buy real estate for pennies, 5 cents, 10 cents, 20 cents on the dollar, I changed my whole strategy and investing became easy.  

HOW DO PROPERTY TAX AUCTIONS WORK? – ONLINE AUCTIONS

As the years have passed, the business has become easier and easier because during that 30 years, local counties, which are a little behind the times and old fashioned, have changed, and many now are prepared to do this business online.  

How does a delinquent tax sale work nowadays? Imagine sitting at your kitchen table buying and selling. That’s now possible. 

Suddenly, we are getting invitations from other countries of the world asking if they can purchase in the USA online. 

We currently have bargain hunters from Singapore, Australia, Bangkok, Thailand, and most of the provinces of Canada investing in the USA purchasing, reselling, and earning $25,000, $50,000, and some have made over $100,000 on one property.  

HOW DO PROPERTY TAX AUCTIONS WORK?  – A BUSINESS OF ABUNDANCE

Small population counties will have small auctions, meaning a dozen or maybe 50 properties to auction compared to large population counties like Miami-Dade or Los Angeles where they could have hundreds.

I have attended in Los Angeles where there have been more than 1,500 properties available.

My point is, this is a business of abundance.

HOW DO PROPERTY TAX AUCTIONS WORK? – A MORTGAGE-FREE PROPERTY

What surprises most auction buyers and all of the general public is this one fact…

Tax defaulted properties have low starting bids, and the county treasurer has the power to delete, clean off, extinguish the mortgage, and in some states, the deed of trust.  

Clearly, investors are motivated to purchase property at tax defaulted auctions that are clear of any mortgage. 

The winning bidder will receive title to the property free of loans and many other liens.  

Additionally, there are a number of states which are called redeemable deed states.  You can read more about redeemable deeds here.

TAKEAWAY

How do property tax auctions work? The process is simple and straightforward.

All state governments authorize and mandate that local counties levy and collect taxes.

In the event property owners refuse to pay, the county will confiscate and auction the property at a public auction.

Anyone may attend the auction.

In many instances, a county employee will be acting as the auctioneer. In some states, they may call that person, or give that person the title of ex-officio sheriff.

The highest bidder will receive a deed to the property.  It’s all very clear and step by step. 

The winning bidder will receive the property free and clear of mortgage.  

If you’d like to know more, I provide full support and complete training with home study courses, Q&A webinars, live tutorials, workshops, web classes, and personal coaching with certified coaches.

Learn how to mitigate the risks of buying tax deed properties and reap the huge rewards.

In fact, you can get started today by taking advantage of my Free Master Class to learn how you can make amazing real estate profits safely. Act now. It costs you nothing and will give you a big head start.


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