Rental Property Investor · Augusta, GA · Member since 2017 · 825 posts · 278 votes
I'm planning to attend the tax deed auction next month. My bidding plans will be different depending on whether I guess that the deed will be redeemed or I'll end up with the property. (Please notice, I do say guess. I'm not expecting 100% accuracy) Does anyone have any statistics on how often these deeds are redeemed? Either for Georgia overall or Augusta in particular?
They start the bidding at the amount of back taxes owed. The winning bidder then receives a tax lien on the property. The owner has 12 months to pay back the amount the bidder paid *plus* 15% interest. If the 12 months expires the holder of the tax lien can legally foreclose on the property.
In my experience, in order to be able to purchase title insurance you have to go through a "quiet title action," which costs ~$2k in atty fees/court costs. Many tax lien investors on the lower end stuff do not. I have purchased one deal this way.
I would definitely do at least a drive by on the ones you bid on, because the stuff that actually makes it to the auction is junk and may not be worth the back taxes. Usually the good ones get paid just before the auction.
I would say you are likely to redeem if it's a junker property that is condemned/borderline condemned dwelling and likely not to redeem if it's a decent property.
Good luck!! I may come to the auction this month as well.