Today I’m answering your questions about Orange County tax deed sales. I’m Ted Thomas, and I’ve been investing in tax defaulted real estate and tax lien certificates for over 30 years.
The topics I’m going to cover in “Orange County Tax Deed Sales: What You Need to Know Before You Buy” are:
- Orange County Starts the Process With Tax Lien Sales
- How Orange County Tax Lien Sales Work
- The Next Step Is the Orange County Tax Deed Auction
- What You Need to Know About County Auction Rules
- Getting Educated on Tax Deed Investing
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Orange County Starts the Process With Tax Lien Sales
In Florida, two auctions are required before the property owner actually loses the property for nonpayment of property taxes.
Orange County starts the process with a tax lien certificate auction. The property owner that defaulted on the property taxes in Orange County will find that the county is authorized by the state legislature to ultimately seize the property and resell it at a tax deed auction, but the tax lien auction must happen first.
The first action by the county will be to use due process, put the property in a default situation, and begin notifying the property owner that the county will be selling a tax lien certificate to anyone who is willing to come forward and pay the defaulted property taxes.
How Orange County Tax Lien Sales Work
The tax lien certificate auction properties will be listed on the county website, and the auction will be advertised in the local newspapers. Anyone can attend and purchase.
This is a reverse auction, which means bid down. The highest bid in Florida is an interest rate of 18%. The bid down starts at that point.
The tax lien certificate bidder must pay the full amount of the delinquent property taxes, however, the winner of the tax lien certificate will be the party who will accept the lowest interest rate.
By law the defaulted property owner may remain on the property for a 2-year period. At the end of 2 years, if the property owner has not paid the defaulted taxes and the accrued interest, the tax lien certificate holder may request that the county conduct another auction, a tax deed sale.
The Next Step Is the Orange County Tax Deed Auction
Orange County tax deed sales are tax defaulted auctions, where the property itself is sold. Anyone may attend Orange County tax deed sales and observe the auctions.
The delinquent taxes are the starting point, however, the accrued interest and fees are added to the minimum bid. The highest bidder will be the winner.
If the property sells at the tax deed auction for a higher price than the minimum bid, there will be a new owner.
The previous tax lien certificate purchaser will be paid a 100% return on capital plus the accrued interest for the past 2 years and any fees required by the county.
Orange County tax deed sales also cancel, that is delete, the mortgage or deed of trust loan on the property, and the new owner will receive a property free of loans and encumbrances.
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What You Need to Know About County Auction Rules
I’m not an attorney and not giving legal advice. I’m giving you information which is typical of the business, but not meant to be legal guidance. Just because you haven’t seen the legal notices doesn’t mean they won’t apply to you.
Auction rules and processes are clearly displayed on the county website and on county tax deed sale announcements.
Buying tax lien certificates and tax deeds is a serious business. Bidders should be prepared to fund their purchases. Those who fail to pay on time will lose their privilege to attend and purchase in the future.
Buying real estate has consequences, good and bad. Local counties will take great effort to advise and educate newcomers and tax auction buyers.
I’m pointing out a few highlights, but you can and should read the local statutes and auction rules where you plan to buy tax defaulted properties. The Statue number in Florida is 197, and understanding the statute might link you to other important information.
The county clerk presents information on the county website about their particular auction, and disclosures seem to be much the same from counties and municipalities.
For example, your county makes no warranty or guarantee concerning the accuracy of the content of their website. The assessment of the data is up to you, and it’s your responsibility to understand it and seek out clarification.
Getting Educated on Tax Deed Investing
This is a point where many student investors become confused and discouraged. Successful coaches and mentors are almost a miracle, and this is why I say your best investment money is in education.
Why? Because you don’t know what you don’t know. In my own experience, when I started asking successful people for guidance and they shared their answers, I took time and made notes.
Starting out in real estate investing can be intimidating. There are many tough decisions, and the answers have already been worked out by other successful investors. If you’re not talking to a coach, you are missing the boat.
Conclusion
We hope you enjoyed Ted’s lesson, “Orange County Tax Deed Sales”
Orange County tax deed sales only occur after a tax lien certificate, purchased at an Orange County tax lien sale, matures without being redeemed. Then the certificate holder must request a reauction, which is a tax deed sale.
At Orange County tax deed sales, the bidding begins at the amount of the delinquent property taxes plus interest and fees. The highest bidder wins and receives the property mortgage-free.
If the winning bid is higher than the minimum bid, then the tax lien certificate holder will be paid back all their money plus the interest. If the winning bid is the minimum bid, then the certificate holder receives the property without a mortgage.
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.
Learn how to reap huge rewards from tax lien and tax deed investing! Get started today by taking advantage of this Free Gift from Ted. Act now, it costs you nothing and will give you a big head start!
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.
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