Tax Cert Auctions Advice

[Michael Abernathy]

Hello everyone.

I just got a noticed that my county will be conducting their annual tax certificate auction.

I downloaded the list and narrowed it down to areas I'd be interested in.

What are the pitfalls of Tax cert auctions?

The way I understand it is that you bid down the percentage that you are willing to take.  If you win you then you basically have a lien on the property.  If the owner pays the delinquent taxes, the interest is calculated and a check is distributed to the cert holder.  If the owner does not pay, the cert holder can then file for a Tax Deed Application after two years (I assume you would also want to purchase the lien the following year).  This starts the foreclosure process.  If the property does not sell at foreclosure the tax cert holder is required to take deed to the property.

Also, what happens if there is no mortgage on the property?  I found one single family home that does not have a mortgage.

Thanks everyone.

Mike