Who are the tax lien experts here?
Investor · Covington, LA · Member since 2012 · 517 posts · 317 votes
Who are the tax lien experts here?
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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votesI know about SC. Have been buying them for 12 years or so. Don't have a day job anymore because of the houses I have acquired with a tax deed.
39 Replies
- Investor · Covington, LA · Member since 2012 · 517 posts · 317 votes4y
Originally posted by @John Underwood:
I was looking for a list of the top states to buy tax liens and have not been able to find one.
Top states would have 1 year or less redemption period. Must be in person auction. Bid up auction. No foreclosure or legal proceedings or paperwork to get a tax deed.
What's States have this other than SC?
Let's work this out, I'll post everything I know about each state if you can do the same and maybe other people can fill in the holes. I have been wanting to do this for a while now anyway.
Alabama: Redemption Period 3 Years, about 1/2 of the counties bid down interest, not sure of the process to get a deed. At least 1/2 counties online.Arizona: Redemption Period 3 Years, Foreclosure process, Bid down interest. At least 1/2 counties online.
Colorado: Redemption Period 3 Years, Deed issued by Treasurer, Prem bidding non refundable. Interest rate 9% a year currently. At least 1/2 counties online.
Iowa: Redemption Period 2 Years, Deed issued by Treasurer, Bid down percentage of ownership. Interest rate 2% a month. Most counties online.
Louisiana: Redemption Period 3 Years, Foreclosure process, Bid down percentage of ownership. 5% initial, 1% month rate. About 1/2 parishes online.
Mississippi: Redemption Period 2 Years, Deed issued by County, Prem bidding non refundable. Interest rate is 1.5% a month. Most if not all counties are online.
Montana: Redemption Period 3 Years, Deed issued by Treasurer, Random draw bidding. Interest rate is 2% initial 10% year. I believe all are in person.
Wyoming: Redemption Period 4 years, Deed issued by County, Random draw bidding. Interest rate is 3% initial 15% year. All are in person.
If anyone knows the above information for any of the other tax lien states please share it here, Thanks.
- Investor · Covington, LA · Member since 2012 · 517 posts · 317 votes4y
Originally posted by @Timothy Borg:
@Jerry K. I have one of my first liens coming up on the 3-year mark from up in Navajo County, AZ. I am trying to decide if I should just let it sit or start the foreclosure process. It is kind of a strange situation, I only have the lien for that one year. There were not anymore liens sold. I believe the lot was merged together with the lot next door.
That sounds very suspicious and problematic. I would be making phone calls and digging into that to find out for sure what you have.
- 4yJohn UnderwoodPro MemberInvestor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
Originally posted by @Will Sifert:
Originally posted by @John Underwood:
I was looking for a list of the top states to buy tax liens and have not been able to find one.
Top states would have 1 year or less redemption period. Must be in person auction. Bid up auction. No foreclosure or legal proceedings or paperwork to get a tax deed.
What's States have this other than SC?
Let's work this out, I'll post everything I know about each state if you can do the same and maybe other people can fill in the holes. I have been wanting to do this for a while now anyway.
Alabama: Redemption Period 3 Years, about 1/2 of the counties bid down interest, not sure of the process to get a deed. At least 1/2 counties online.Arizona: Redemption Period 3 Years, Foreclosure process, Bid down interest. At least 1/2 counties online.
Colorado: Redemption Period 3 Years, Deed issued by Treasurer, Prem bidding non refundable. Interest rate 9% a year currently. At least 1/2 counties online.
Iowa: Redemption Period 2 Years, Deed issued by Treasurer, Bid down percentage of ownership. Interest rate 2% a month. Most counties online.
Louisiana: Redemption Period 3 Years, Foreclosure process, Bid down percentage of ownership. 5% initial, 1% month rate. About 1/2 parishes online.
Mississippi: Redemption Period 2 Years, Deed issued by County, Prem bidding non refundable. Interest rate is 1.5% a month. Most if not all counties are online.
Montana: Redemption Period 3 Years, Deed issued by Treasurer, Random draw bidding. Interest rate is 2% initial 10% year. I believe all are in person.
Wyoming: Redemption Period 4 years, Deed issued by County, Random draw bidding. Interest rate is 3% initial 15% year. All are in person.
If anyone knows the above information for any of the other tax lien states please share it here, Thanks.
South Carolina: Remption period 1 year, Deed issued by County automatically (No foreclosure or additional paperwork) Bidding starts at taxes owed. Interest rate is 12% broken down quarterly (3,6,9,12). All are in person, October to December.
- 4yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Will Sifert:
Originally posted by @John Underwood:
I was looking for a list of the top states to buy tax liens and have not been able to find one.
Top states would have 1 year or less redemption period. Must be in person auction. Bid up auction. No foreclosure or legal proceedings or paperwork to get a tax deed.
What's States have this other than SC?
Let's work this out, I'll post everything I know about each state if you can do the same and maybe other people can fill in the holes. I have been wanting to do this for a while now anyway.
Alabama: Redemption Period 3 Years, about 1/2 of the counties bid down interest, not sure of the process to get a deed. At least 1/2 counties online.Arizona: Redemption Period 3 Years, Foreclosure process, Bid down interest. At least 1/2 counties online.
Colorado: Redemption Period 3 Years, Deed issued by Treasurer, Prem bidding non refundable. Interest rate 9% a year currently. At least 1/2 counties online.
Iowa: Redemption Period 2 Years, Deed issued by Treasurer, Bid down percentage of ownership. Interest rate 2% a month. Most counties online.
Louisiana: Redemption Period 3 Years, Foreclosure process, Bid down percentage of ownership. 5% initial, 1% month rate. About 1/2 parishes online.
Mississippi: Redemption Period 2 Years, Deed issued by County, Prem bidding non refundable. Interest rate is 1.5% a month. Most if not all counties are online.
Montana: Redemption Period 3 Years, Deed issued by Treasurer, Random draw bidding. Interest rate is 2% initial 10% year. I believe all are in person.
Wyoming: Redemption Period 4 years, Deed issued by County, Random draw bidding. Interest rate is 3% initial 15% year. All are in person.
If anyone knows the above information for any of the other tax lien states please share it here, Thanks.
interest rates in MS get bid down as well from what i saw years ago when I attended the sale in Jackson.
- Investor · Covington, LA · Member since 2012 · 517 posts · 317 votes4y
Originally posted by @Jay Hinrichs:
Originally posted by @Will Sifert:
Originally posted by @John Underwood:
I was looking for a list of the top states to buy tax liens and have not been able to find one.
Top states would have 1 year or less redemption period. Must be in person auction. Bid up auction. No foreclosure or legal proceedings or paperwork to get a tax deed.
What's States have this other than SC?
Let's work this out, I'll post everything I know about each state if you can do the same and maybe other people can fill in the holes. I have been wanting to do this for a while now anyway.
Alabama: Redemption Period 3 Years, about 1/2 of the counties bid down interest, not sure of the process to get a deed. At least 1/2 counties online.Arizona: Redemption Period 3 Years, Foreclosure process, Bid down interest. At least 1/2 counties online.
Colorado: Redemption Period 3 Years, Deed issued by Treasurer, Prem bidding non refundable. Interest rate 9% a year currently. At least 1/2 counties online.
Iowa: Redemption Period 2 Years, Deed issued by Treasurer, Bid down percentage of ownership. Interest rate 2% a month. Most counties online.
Louisiana: Redemption Period 3 Years, Foreclosure process, Bid down percentage of ownership. 5% initial, 1% month rate. About 1/2 parishes online.
Mississippi: Redemption Period 2 Years, Deed issued by County, Prem bidding non refundable. Interest rate is 1.5% a month. Most if not all counties are online.
Montana: Redemption Period 3 Years, Deed issued by Treasurer, Random draw bidding. Interest rate is 2% initial 10% year. I believe all are in person.
Wyoming: Redemption Period 4 years, Deed issued by County, Random draw bidding. Interest rate is 3% initial 15% year. All are in person.
If anyone knows the above information for any of the other tax lien states please share it here, Thanks.
interest rates in MS get bid down as well from what i saw years ago when I attended the sale in Jackson.
That must have changed at some point, it's all premium bidding now.
BiddingMississippi Tax Lien Auctions are conducted by a "premium bid," meaning the highest bid wins. Bidders are bidding up from the face value amount (taxes, interest, fees, and penalties). Any amounts placed above the face value amount would be considered an "overbid." The purchaser does not earn interest on the "overbid," only on the face value amount. You are encouraged to investigate and research any parcel you are interested in prior to making any bids.
- 4yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Will Sifert:
Originally posted by @Jay Hinrichs:
Originally posted by @Will Sifert:
Originally posted by @John Underwood:
I was looking for a list of the top states to buy tax liens and have not been able to find one.
Top states would have 1 year or less redemption period. Must be in person auction. Bid up auction. No foreclosure or legal proceedings or paperwork to get a tax deed.
What's States have this other than SC?
Let's work this out, I'll post everything I know about each state if you can do the same and maybe other people can fill in the holes. I have been wanting to do this for a while now anyway.
Alabama: Redemption Period 3 Years, about 1/2 of the counties bid down interest, not sure of the process to get a deed. At least 1/2 counties online.Arizona: Redemption Period 3 Years, Foreclosure process, Bid down interest. At least 1/2 counties online.
Colorado: Redemption Period 3 Years, Deed issued by Treasurer, Prem bidding non refundable. Interest rate 9% a year currently. At least 1/2 counties online.
Iowa: Redemption Period 2 Years, Deed issued by Treasurer, Bid down percentage of ownership. Interest rate 2% a month. Most counties online.
Louisiana: Redemption Period 3 Years, Foreclosure process, Bid down percentage of ownership. 5% initial, 1% month rate. About 1/2 parishes online.
Mississippi: Redemption Period 2 Years, Deed issued by County, Prem bidding non refundable. Interest rate is 1.5% a month. Most if not all counties are online.
Montana: Redemption Period 3 Years, Deed issued by Treasurer, Random draw bidding. Interest rate is 2% initial 10% year. I believe all are in person.
Wyoming: Redemption Period 4 years, Deed issued by County, Random draw bidding. Interest rate is 3% initial 15% year. All are in person.
If anyone knows the above information for any of the other tax lien states please share it here, Thanks.
interest rates in MS get bid down as well from what i saw years ago when I attended the sale in Jackson.
That must have changed at some point, it's all premium bidding now.
BiddingMississippi Tax Lien Auctions are conducted by a "premium bid," meaning the highest bid wins. Bidders are bidding up from the face value amount (taxes, interest, fees, and penalties). Any amounts placed above the face value amount would be considered an "overbid." The purchaser does not earn interest on the "overbid," only on the face value amount. You are encouraged to investigate and research any parcel you are interested in prior to making any bids.
WEll yes your right to me its the same thing you bid higher than ask so your interest rate return comes down.. so thats kind of how i looked at it. in Rankin county virtually every lien was over bid at the sale I was at.. seemed like some hedge fund type action bidder. the only ones that got par were the left overs .
- Texas Tax Sales Services · Merit, TX · Member since 2014 · 256 posts · 166 votes4y
Texas: Redemption 180 days except for Homestead Exemption, Agricultural Exemption, and Severed Mineral Leases which are 2 year redemption periods. Rate is 25% first year and 50% second year but it is not an interest rate but is a penalty fee and therefore is not pro-rated. You get the full percentage plus your cost back even if redeemed two days after purchase. Texas is a tax deed state so you are bidding on the ownership of the property. Taxes owed are the opening bids. Any post judgment taxes must be paid in addition to the winning bid. Sales are every month and some of the counties have gone online with the sales but most have not yet and require attendance. Usually there are between 40 and 90 counties that have a sale in a given month but the January sale for 2022 is much smaller probably due to holidays the two weekends before the auction which generally carry over to the day before the sale as well plus other related reasons.
- Specialist · Phoenix, AZ · Member since 2011 · 698 posts · 629 votes4y
Originally posted by @Timothy Borg:
@Jerry K. I have one of my first liens coming up on the 3-year mark from up in Navajo County, AZ. I am trying to decide if I should just let it sit or start the foreclosure process. It is kind of a strange situation, I only have the lien for that one year. There were not anymore liens sold. I believe the lot was merged together with the lot next door.
Agree with Will, you need to contact the county and see what the state of the underlying parcel is. No sense if starting to pay for a foreclosure. If the parcel was merged with another, and that parcel is up to date, it may just take a letter to get the taxes and interest repaid.
- Investor · Sugar Hill, GA · Member since 2014 · 168 posts · 97 votes4y
"Originally posted by @Will Sifert:
Originally posted by @John Underwood:
I know about SC. Have been buying them for 12 years or so. Don't have a day job anymore because of the houses I have acquired with a tax deed.
That is awesome. I am not to the point yet. I haven't taken any money out in 12 years, just reinvest it. "
I had a 6 figure 9 to 5 in Information technology and I quit that job when I realized I could do Tax deeds full time and make more money. I never looked back and wish I would have jumped into Real Estate years earlier.
Its getting tougher though. When I started, the bigger competition were builders, neighbors and people like me. Now days, I see more corporate investors and they are after the more valuable properties which is were we want to be as well.
- JD, CCIM , Real Estate Broker · Tuscaloosa, AL · Member since 2014 · 1k+ posts · 1k+ votes4y
Alabama 45 counties (about 2/3) including all the large ones now do tax lien auctions with online auctions and interest bid-down. Redemption period 3 years. For those still doing tax certificate auctions, and for purchases over the counter from the State, tax deed is automatic three years after auction, but there might still be redemption rights. The tax deed vastly improves the investor's legal and economic position, though. For tax liens, you file a judicial foreclosure lawsuit to foreclose your lien. You name as defendants anyone who has redemption rights. If they don't redeem (by paying taxes, interest, and investor legal fees) then the judge forecloses the lien, quiets title in the investor and orders the circuit clerk to issue a deed to the investor. There is no auction. Outsiders do not get a chance to get the property when there is a judicial foreclosure. It's not like a judicial foreclosure of a mortgage, in those states that use that method.
Possession rights in investor automatic granted after tax certificate sale. No automatic with tax lien sale, but there are strategies for gaining possession and improving the property, and getting reimbursed even if there is a redemption. Plus, investor can keep rental income in the meantime.
- Investor · Covington, LA · Member since 2012 · 517 posts · 317 votes4y
Quote from @Denise Evans:
Alabama 45 counties (about 2/3) including all the large ones now do tax lien auctions with online auctions and interest bid-down. Redemption period 3 years. For those still doing tax certificate auctions, and for purchases over the counter from the State, tax deed is automatic three years after auction, but there might still be redemption rights. The tax deed vastly improves the investor's legal and economic position, though. For tax liens, you file a judicial foreclosure lawsuit to foreclose your lien. You name as defendants anyone who has redemption rights. If they don't redeem (by paying taxes, interest, and investor legal fees) then the judge forecloses the lien, quiets title in the investor and orders the circuit clerk to issue a deed to the investor. There is no auction. Outsiders do not get a chance to get the property when there is a judicial foreclosure. It's not like a judicial foreclosure of a mortgage, in those states that use that method.
Possession rights in investor automatic granted after tax certificate sale. No automatic with tax lien sale, but there are strategies for gaining possession and improving the property, and getting reimbursed even if there is a redemption. Plus, investor can keep rental income in the meantime.
Thanks for the information Denise, I have a question for clarification in regards to tax liens. After the 3 year redemptive period expires, the tax lien holder hires an attorney to file a foreclosure lawsuit against everyone that has an ownership interest in the property. So even after the redemptive period expires and after the lawsuit has been filed, someone with an ownership interest in the property can still do a redemption? If they can, would they have to pay all of the tax lien holder's attorney costs to that point for the lawsuit?
I noticed that AZ is the same way, anyone with an ownership interest can redeem even after the redemption period expired and after the lawsuit has been started. Louisiana is so different, they can't do a redemption here after the redemption period expires. All they can do is file a lawsuit to try to annual the tax sale. When I file my lawsuit to confirm the tax sale and quiet title (foreclosure) they either do nothing and I win or they file their own lawsuit to try to annual the tax sale and try to make a defense, which usually they try to claim lack of notice.
- JD, CCIM , Real Estate Broker · Tuscaloosa, AL · Member since 2014 · 1k+ posts · 1k+ votes4y
@Will Sifert, if the owner redeems after the judicial foreclosure lawsuit has been filed, the reasonable attorneys fees for that lawsuit, plus court costs, will be added to the redemption price tag. The investor cannot collect for ALL attorneys fees related to the lien purchase, throughout the lien ownership period.
BTW, if a bill pending in Alabama legislature is passed and signed into law, the judicial foreclosure "window" will be changed from the current 3 years (earliest) to 10 years (latest) to a new time period of 45 months (earliest) to 60 months (latest)
- Investor · Covington, LA · Member since 2012 · 517 posts · 317 votes4y
Quote from @Denise Evans:
@Will Sifert, if the owner redeems after the judicial foreclosure lawsuit has been filed, the reasonable attorneys fees for that lawsuit, plus court costs, will be added to the redemption price tag. The investor cannot collect for ALL attorneys fees related to the lien purchase, throughout the lien ownership period.
BTW, if a bill pending in Alabama legislature is passed and signed into law, the judicial foreclosure "window" will be changed from the current 3 years (earliest) to 10 years (latest) to a new time period of 45 months (earliest) to 60 months (latest)
Seems like Alabama has been tinkering with tax sales a lot In the last 5 years or so.
45 month redemption period, who makes this stuff up? 3 years too short, 4 years too long ???
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