A delinquent tax auction sale provides ample opportunity to profit, but what is it?
Local governments (county, city, township, town, parish) receive most of their operating funds from property taxes.
When property owners default and fail to pay property taxes, the local government’s method to enforce payment of those taxes is to place a tax lien on the property or seize the property and sell it for the back taxes which are due.
If the property taxes remain unpaid the government in about half the states in the United States sell tax lien certificates and the others sell tax deeds at a tax defaulted auction.
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WHAT IS A DELINQUENT TAX AUCTION SALE? – TAX LIENS AND TAX DEEDS
There are two basic systems used in the United States for local governments to recover unpaid taxes at a delinquent tax auction:
• In states that sell tax lien certificates, the buyer of a tax lien certificate pays the government the amount of the past due taxes. When property taxes are paid, the tax lien certificate holder gets back all of the original investment plus a high interest rate from the government. In the occasional situation, where the tax lien certificate is not paid, it’s possible for the investor to get possession of the property, after a foreclosure process, for just the back taxes and fees owed to the government.
• In states that sell tax deeds, the investor is buying the property, usually at a significant discount from the full market value.
Delinquent tax deed sales are most often held at a public auction, where anyone can buy, including foreign investors.
Those who invest in tax lien certificates are often seeking a passive high interest return on their investment, while those, who invest in tax deeds are willing to buy and sell property and earn a much greater return on their investment at a delinquent tax auction.
Ted Thomas has helped many investors understand the answer to: “What is a tax defaulted property auction (delinquent tax auction) like?” and the secrets to avoid costly mistakes.
Ted Thomas specializes in tax deed and tax lien investing, and Ted’s the only one who provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops & web classes, and personal one-on-one coaching.
If you’d like to learn more about how to profit from delinquent tax auctions, where you can get properties for 10, 20, or cents on the dollar, or invest in tax liens to earn interest rates of 16%, 18%, 24%, even up to 36%, then get started today with the FREE Master Class.