What Is A Tax Lien Sale?

It’s a sale held annual by many counties/government bureaus to meet delinquent property taxes owed by landowners. At a Lien Sale, overdue taxes combined with accrued interest or penalties related to the sale is supplied by public auctions to potential investors.

Winning Bidder will have what’s known as a “tax-lien certification” which only says that you as the Realtors own the “first place lien” from the property that’s bought in the lien purchase. County Tax Sale App (CTSA) deals with all the matters related to foreclosure and auction of the property.

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In case that more than 1 investor seeks the exact same lien, determined by state law that the winner will be determined by one of five approaches:

  1. Interest Bid Down Method-The investor who bids the bottom interest rate drops.
  2. Premium Bid-The person/investor that’s prepared to bid the greatest wins.
  3. Random Choice- A random choice is made by means of a computer to pick from interested or registered lien buyers.
  4. Rotation Method-A bidding amount in the shareholders will be selected. The initial bidder will decide to take the offer or decrease. In the event the initial one declines then the next selected bidding amount is likely to produce a determination whether to take or not.
  5. Bid Down Ownership-a bidder may consent to have a lien on just 85 percent of their property. If the lien isn’t redeemed, then the investor could just receive 85% ownership of their property together with all the rest 15% owned by the original owner.

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