When faced with non-payment of property tax, county governments sometimes offer sales of taxes to the public at auction as a step toward lost revenue. In the case of a tax lien sales auction, it is really just a certificate that is sold and bought and not the actual land or property.
A buyer of such a tax lien is essentially lending money to the property owner to pay his taxes. In return, the property owner must reimburse the buyer, all increased taxes and the sum of all fines and administrative costs. Failure to do so, the buyer will be able to access the ownership of the deed and the property in question.
A tax lien sale is a public sale set up as an auction, contrary to the County’s right to collect on a delinquent taxpayer’s debt. The county organizes such auctions, generally once a year. The term of sale differs from state to state, in fact, county to county as well. Basically, if such debt is not paid with the interest rate of the agreed amount that is determined at the time of sale within a particular period of time, the buyer of the tax lien can foreclose on the property.
Unlike a tax lien certificate sale, if you purchase a tax deed sale, you are not responsible for any other bond, mortgage, or deed of trust issued on the land. You buy the title deed, which is completely free and free of any other obligations.
You can contact the county for specific information and details about the sale and the properties. It would be wise to gather information on the type of sale you are attending, a tax deed or a tax lien / certificate sale, because these two sales differ in terms of specific rules and guidelines. You may want to know the details about the method and timeliness required for the payment and delivery of a property. Getting the guidance of a legal attorney and government agency would be an advantage.
