Steps
- Visit your favorite county website to get more information on the process. It varies per county. Some counties don't sell tax lien certificates; instead they sell tax deeds. Visit http://www.naco.org/ to find the county website.
- Preregister for the tax lien sale of your choice.
- Find out the available method of payment for the liens.
- Attend the tax lien sale, and double check the accuracy of the county lists.
- Be sure to find out the laws and timing of tax lien redemption.
Tips
- Sales are usually once a year. Usually you must attend in person.
- Some states are now holding their tax lien auctions online, such as Arizona.
- Either you bid down the interest rate, bid up the amount, or have a round robin or lottery type of sale. Find out ahead of time what type of sale the county is holding.
- Don't be shy. Speak to as many of the other bidders as you can at the sale to learn more.
Warnings
- Your investment is not liquid.
- Many people buy tax liens and mortgage notes expecting to get a house if the tax is never paid. Rarely does the property go into foreclosure, which doesn t mean the lien is a bad investment, just don t go in thinking you ll get a house from it.
Sources and Citations
- You can view a list of auctions and tax liens free at http://www.lienexchange.com/
- Register for a free account at http://www.taxsalelists.com/
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