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New Tax Deed Investor

As a new tax deed investor your first step is to locate and visit the county courthouse. There are many gurus who will sell you information, but nearly all you need to know can be found for free.

In respect to all 50 states, there are 2 distinctive types of auctions pertaining to tax delinquency property, tax deeds commonly called tax foreclosures and tax certificates commonly called tax liens or tax sale certificates (depending on the guru who sold you the information). And, there are inconsistencies even among those states that are deemed lien states or deed states.

One such state showing inconsistency is Wisconsin. The counties may purchase the tax liens from the cities. This is indeed the case in Milwaukee County. If the tax lien is not redeemed a tax deed is issued to the county where it is quieted and property is conveyed to non profits or listed through realtors. Other counties in Wisconsin do auction their tax deeds and Wisconsin is a deed state in which some counties do not partake.

These are lien states, which offer purchasing opportunities for tax certificates and tax deeds.

AL, AZ, CO, CT, DC, FL, IL, IN, IA, KY, LA, MD, MI, MS, MO, MT, NC, ND, NE, NH, NJ, NY, PR, RI, SC, SD, TN, VT, WV

In most states a description of the auction process and requirements can be found at either the Clerk of Courts Office or Registrar of Deeds Office, at the County level. I always start with a search of the county websites to locate information. Here is an example of the types of information that can be found and where to find it. The linked page contains tax deed investing information on Oklahoma and Hawaii.

How it works in most Lien States and the municipalities within them:
Tax certificate is issued for non payment of taxes, if unredeemed tax deed application is made. After application and redemption of all other outstanding certificates by investor making application, tax deed auction occurs. If no bidder comes forward you will be issued the tax deed.

Another example of inconsistency among the states is Mississippi. There are thousands of tax forfeited lands that can be found by searchable database maintained by the Secretary of State (Google Mississippi 16th section lands to locate the site), which is quite different from Florida, also a deed state. In Florida those properties unsold at the tax deed auction are issued to the certificate holder. If the certificate holder is the county, the property resides on the List of Lands Available For Taxes which is maintained at the county level.

In Florida, all procedural requirements are mandated by statute and there is little difference between investing in and among different counties. It is due to this that Florida Counties have been able to conduct tax certificate auctions online in the past few years with only 3 hosting companies among the 67 counties. (Statute mandates procedure not contractual interests) So, Grant Street Group, Bid4Assets and Realty Bid are the three top dogs for hosting different county auctions.

Only in 2008 has the statute allowed for judicial sales (mortgage foreclosures, tax deed auctions) to be conducted online and the big three are again at each others heals to get the business. As of now, the Counties are still conducting their judicial sales at the court houses across the states. This I believe will be the main stay for a few more years as many smaller counties do not have the funding for site development and online auctions.

As you can see there are stones to find and overturn, but with the right information your tax deed investing stones can lead a path to success.

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