Delinquent Property Tax Auction Question

[Sin Hang Lai]

Hi, I attended my first delinquent property tax auction today at a small town in Connecticut.

It was an interesting experience to just observe. There were 4 properties. 2 were sold to individuals. No one bid on the other 2, so the lawyer in charge of the auction said something like the town will take the minimum bid.

When the lawyer said that, I thought, "So does that mean someone can bid against the town now? And does that mean the town can keep bidding against people?"

That's pretty much my question.

[Ric McGuire]

In a county tax auction, the town doesn't "bid against other people".  The government agency holding the tax sale would only make one bid.  That's called the "opening bid".  That would be based on all the delinquent taxes, plus whatever late fee's, interest, legal fee's, advertising costs, etc. which were added to the original amount due.  The taxing agency doesn't want the property - they want the tax revenue.  That's all they are entitled to so they don't keep bidding beyond their opening bid.

Tax sale laws vary according to state.  I have been very involved in Georgia and Florida tax sales for many years.

Tax sales have very different rules than mortgage foreclosure sales.  You should familiarize yourself with those laws in your state before bidding.

Hope this answers your question.