Today I’m answering your questions about Volusia County tax deed sales, and the topics I’m going to cover are:
- Volusia County Auction Rules
- What Happens When County Property Tax Is Not Paid
- Buying Tax Liens in Florida
- Redemption Period of Tax Lien Certificates in Florida
- Buying Tax Deeds in Florida
- A Costly Mistake at a Volusia County Tax Deed Auction
I’m Ted Thomas, and I’ve been involved in tax liens and tax deeds for more than 30 years as an investor, a teacher, and a guide.
Want to learn how to purchase bargain real estate? Would you like to buy mortgage-free property for pennies on the dollar? Or earn double-digit interest rates secured by real estate? Then take advantage of this FREE Gift.
Volusia County Auction Rules
It sure helps if you know the rules at the tax auction. Later, I’m going to give you an example which is all too common where an uneducated buyer discovers the auction, shows up and misses out on a lot of money. I call the example the lady in the red dress.
Her face ended up being red because she lost out on a six-figure profit because she didn’t know the rules, and the other bidders knew what to do.
Everyone is treated equally at the auction, however, not everyone will read the auction rules. You’ll see how painful this can be in just a few minutes. Before I go further, Volusia County tax deed sales are really an auction which is usually held online or on the county courthouse steps.
What Happens When County Property Tax Is Not Paid
In over 3,000 counties across the United States, local county governments pay county employees, and they’ll contribute to hospitals and libraries with the money they collect from property tax revenue.
If the property owner fails to pay property tax, and millions actually do fail to pay, the county will take action. They’ll put the property in a default situation, and many due-process notices are sent to the delinquent property owner.
The county is authorized by the state legislature to seize the property for nonpayment of property taxes, and then the treasurer will place the property on a list of tax auction properties which will be sold to the highest bidder.
The auctions are posted on the county website and announced in the local newspaper. Anyone can attend the auction.
Volusia County is a small population county, and their auctions usually have dozens of properties available.
Buying Tax Liens in Florida
Florida law requires two auctions for tax delinquent property owners. The first auction is a tax lien auction, and the treasurer will issue a tax lien certificate in the amount of the property taxes and other penalties.
Anyone with money can purchase the tax lien certificate at auction, and it can be purchased online or offline.
The purchaser of a Florida tax lien certificate has no right to the property and will be granted a piece of paper that represents the property tax debt that is owed to Volusia County. The certificate can pay up to 18% to the certificate holder.
Many safety-conscious investors prefer tax lien certificates because they are considered safe and secure. The security for the investment is the delinquent property.
Redemption Period of Tax Lien Certificates in Florida
The property owner that defaulted will remain on the property. Meanwhile, the tax certificate will mature and must be paid in no later than 2 years.
At any time during the 2-year period, the defaulting property owner may come forward and pay the taxes, interest, and any penalties to redeem the certificate. A small amount of tax lien certificate buyers will not redeem the certificate. In other words, they will not pay the taxes, interest, or penalties.
The buyer of that certificate has security in that the county has promised that if they don’t get paid, they can take the property to a second auction. They must request the county auction the property at a second auction, a tax deed auction.
Buying Tax Deeds in Florida
If the property is purchased at the second auction by a sum more than the taxes, accrued interest, and penalties, that new buyer will get the property.
However, the original tax lien certificate buyer will receive from the proceeds 100% of capital plus the interest accrued, earning a generous return if the certificate pays a high interest rate.
This is a point where many student investors become confused and discouraged. This is why I say your best investment money is in education. Why? Because you don’t know what you don’t know. If you are not talking to a coach, you are missing the boat.
I have a free gift for you that will show you how to profit with tax lien certificates and reveal the secrets of tax deed investing. Be sure to get your FREE gift today.
A Costly Mistake at a Volusia County Tax Deed Auction
It’s not unusual to observe auction buyers that do not know the rules and for the auctioneer to stop the auction when people do not understand the rules.
For example, I call this the lady in the red dress. It took place at the Volusia County tax deed sale . The property involved was a condominium in a high rise on the beach with the Atlantic Ocean on one side and the Indian River on the other side.
I was standing on the steps planning to bid up to $60,000 which would have been 20% of the value. The auction started. The first bid was $13,000. It immediately went to $25,000, and shortly after, it went to $65,000. Obviously, that was over my planned bid.
The winner was a woman in a red dress. The auctioneer, who was a county employee, asked the woman to come forward and make a small deposit, which at that time was only a few hundred dollars. Then the woman in the red dress answered, “I don’t have any money.”
The auctioneer said that she would give the lady 5 minutes to find the money or they would reauction the property. This is normal. The woman in the red dress turned to each of the other bidders and asked to borrow the money. They all said no.
The auction restarted, and I had my hopes up. The first bid was $13,000, the second bid was $40,000 and the third bid was $64,000. Going once, going twice, on a property that was worth $250,000-$300,000.
We hope you enjoyed Ted’s lesson, “Volusia County Tax Deed Sales”
You can make big profits from investing in real estate purchased at Volusia County tax deed sales, but it’s important to know and follow the rules to avoid making costly mistakes.
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.