Tax Liens Sales

Has anyone ever purchased property in a county tax lien sale?

I will be attending our county's tax sale in October, and I was wondering if anyone has any experience buying property at such a sale. Was it a good or bad experience? Did the defaulting owner ever redeem the property? Or did you end up with a quitclaim deed, and if so, how long did it take? Thanks!

Public Comments

1. Yes, but I do not purchase to end up with the property only the 24% interest I am currently making. In the past redemption has been almost 100% with the ocassional exception of an elder person and I have a coupe of those I have let go on for years. You need immediate capital and you need to first attend this upcoming auction and see how it works. Large companies come in and buy out huge blocks anymore so it is getting harder for the individual to win the auction. In my area the individual has from 2 - 3 years to redeem. To protect ones interest you buy up the subsequent years tax bills and can do so by simply paying the overdue bill on the property and it never goes back to auction. Hope this helps just a little. But do go to the first one and leave your money home. I also suspect that for the next few years we will see nothing but defaults and few redemptions and the reason I probably will not participate in the auctions this year.
2. I am not so familiar with the subject, but google it also... There must be some forum or messageboards about the subject! Check out also this blog for some interesting news articles about real estate, refinance and mortgages: http://www.lendadvisors.com/
3. Yes, I have been to many auctions. I have taken deeds (after 2-3 year redemption periods), I have received interest returns from tax liens that were paid off (usually in 3-4 months). It is a very good investment vehicle. As for your questions, there's so many rules that you have to give some more info on what particular state or county you are looking at. Also if you want more info on how to invest the right way, you should look into buying a book called the Complete Guide to Real Estate Tax Liens and Foreclosure Deeds: Learn in 7 Days by Don Sausa [isbn 0978834682]. Amazon has the cheapest price on it, but it is by far the best tax lien book I have ever read.