Tax Delinquent List

16 Replies

Hey Guys, 

I was able to receive a tax delinquent list and I'm trying to sort through the information. The accounts have certificates on them with interest rates. Can I do anything with this list? If you have any info on what I should look for in this list please let me know. The list contains about 18,000 records so I need filter through it to decide which ones I should mail. 

Thanks In Advance

It sounds as though you may have the information for purchasing tax liens. You should be able to do quite a bit with the list. First step is to figure out how your state works. How many years can a property be delinquent before it is taken by the county... ah screw it; read this article. I was about to go into explaining it but @Ankit Duggal has it well written here.  You really have to understand how your specific state and county work and what you're interest rates mean. 

When I've done tax delinquent homes I haven't gone the tax lien route. Instead, I've gotten the list of properties and its gives information such as how many years delinquent and how much owed. Properties that are 1-2 years delinquent and only owe a few hundred dollars usually are going to pay up. Properties that are 3+ years older and start to owe thousands of dollars are the ones I'll send postcards/letters to. The idea is that I purchase the property as is and pay back the owed taxes before it goes to tax lien sale/auction.

I'm new here and just read your post. Coincidentally for my real job I process data. I do this for direct mail. If you know what data you want to keep I can help you format it or filter it.

@Steven J. I've looked at the site it says that they sell the certificates for delinquent properties every year so I'm not sure that it can get more than 2 years behind without someone purchasing the lien on the property. I could be misinterpreting the info wrong. I'm not sure how I could use this as my plan was to purchase properties before they were sold. This is what the site says

"Tax Certificates

Real estate taxes become delinquent April 1st each year. A list of all real property with delinquent taxes is advertised once a week for three consecutive weeks in a local newspaper during the month of May after which a Tax Certificate Sale will be conducted on the internet.

A tax certificate represents a lien on real property and earns interest at a maximum rate of 18% per year. The cost to purchase a certificate is listed beside each parcel in the delinquent advertisement and includes gross tax, interest, advertising cost and the cost of the tax certificate sale.

On the advertised day and time no later than June 1st, the Tax Collector auctions and sells a tax certificate on each delinquent parcel. Since the taxes on some parcels will have been paid prior to sale, those paid parcels that appeared in the newspaper advertisement will be skipped. Bidding begins at 18% and the certificate is sold to the person bidding the LOWEST annual interest rate.

Tax certificates that are not bid on at the tax sale are “struck to the county” at an interest rate of 18%. These certificates can be purchased from the county for their current redemption amount. At the time of the sale, a certificate will not be sold against property that: a) is known to be included in a litigation or bankruptcy process b) is homesteaded with taxes due in the amount of $100.00 or less, or c) tax deferral application has been approved.

All certificates are sold on a first come, first served basis."

"Real estate taxes become delinquent April 1st each year. A list of all real property with delinquent taxes is advertised once a week for three consecutive weeks in a local newspaper during the month of May after which a Tax Certificate Sale will be conducted on the internet" This period is when you bulk mail these owners. They are at a point where they may owe money and most will pay up(in my area they do) or they are stuck and are going to lose the property. You have the opportunity to come in and buy at a discount their property for cash. You can't really wholesale any of these because the time frame is too short. You have to time it very carefully and get your marketing out the door ASAP. You also need to have the cash to actually purchase if you get anything under contract.

@Steven J. as a new investor with limited funds I'm not sure I'd be able to focus on this niche. I guess I should find a different option.

That was the case for me. I got some decent leads but I'm unable to move quickly. 

Keep in mind, the way I'm doing this may be quite different than others. I've based this off of Seth Williams podcast. He talked about how he markets for land and gets a great price and its a very similar idea. Don't feel discouraged!

How do you get a Real Estate Delinquent tax list?

@Steven J. I actually read Seth's post as well after I had already started pursuing the list. I was going to focus on purchasing land as well but even with that you would still need money to buy it since you can't wholesale it either

@Steven J. you can go to your tax collector website usually to find it or you can contact them.

Doing the land how Seth does it there may be room to wholesale. I just had a bad wholesale experience where I followed what the gurus said where just put a property under contract, you don't need the money because its a good deal and will sell quickly to a cash buyer. Well, i found that wasn't the case and had to back out of the deal with no legitimate excuse. I felt horrible for wasting the sellers time and energy. Luckily, another investor was able to walk in and make the deal work so it still sold.

@Steven J. you were able to wholesale the land deals in that short amount of time? Could you tell me how? I'd really like to focus on this niche as they seem to be the most motivated if contacted at the right time.

I wasn't able to. In theory, according to the podcast, you're getting the land at such a great ridiculous price, well under 70%, that you find away to have that money or get another to buy it. That brings me to another thought, can you get a line of credit or a loan on something you have under contract? I'll post a new forum about it and see whats out there.

@Steven J. I'm not sure about the line of credit or loan. I'm actually looking at the loans available through my bank right now. I'm trying to see if they offer an investment loan. I would be a first time home buyer but I didn't plan on living in the house so I wouldn't want to use that loan just yet. I heard a 203k loan was good but I'm not sure if it requires you to occupy the property like the FHA loan does. I'm trying to avoid hard money unless it's absolutely required because their rates + points is way to high.

For instance this one:

Interest Rate:

15% - 18%


5.5% - 6.5%

Max Loan Term:

5 months

I still want to focus on this niche so if I can find a way to get it done I will.

When surveying your land you think you might want to purchase how do you analyze to decide whether it's a good investment? Have a little money saved up that I'm willing to risk if I could make it an educated risk.

I'm seeing a lot of statements on how tax liens and tax certificates work.  Please realize that every COUNTY has their own rules, although based off of state rules.  And when it comes to getting ownership of the property, it's only after going through many steps - publication notices, court hearings, etc.

There are opportunities, but you need to know the rules.  Try to find a local attorney who has local expertise.  Buy an hour of his/her time to educate yourself.

Wow, those are high points and rates with your HML.

As for as 203k its part of the FHA program so you would have to live there at the same time.

Sorry for the confusion but I'm not doing land investing. I gave it a one time go and didn't understand it well enough. I would definitely read up on some of Seth Williams stuff. Not many here do land investing and its a different niche. 

I suppose I would approach the land as I do mobile homes. Get them for a great price and then sell on payments for x number of years. 

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