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Tax Liens & Mortgage Notes

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Daniel Ropero
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Researching tax deed properties

Daniel Ropero
Posted Jan 31 2023, 20:44

I am doing some basic research on some properties for an upcoming tax deed auction and I came across a few properties where the opening bid far exceeds the amount of the unpaid taxes. What do you suppose is happening there?

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Bruce Lynn#2 Real Estate Agent Contributor
  • Real Estate Broker
  • Coppell, TX
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Bruce Lynn#2 Real Estate Agent Contributor
  • Real Estate Broker
  • Coppell, TX
Replied Jan 31 2023, 21:11

@Daniel Ropero  When I see this, there is usually a reason.  Like lawsuit and judgement were a few years back....but then before the sale they get put on a payment plan, and then never pay the current taxes for another 2-3-4 years.   They'll then collect the initial judgement and all the subsequent taxes for past due years to catch up.

Also saw some of this over Covid...where judgement might have been July 2020, but sale didn't take place until Jan 2023, so judgement for initial lawsuit, then plus 3 years, plus some legal fees.

Also I've seen a few times where there might be five taxing entities.  One gets the judgement, but tax collector collects that and all the other taxes due from the other entities.

I'm in Texas so Florida could be completely different. I'd look at when the judgement was taken....or if you can get a breakdown for what has been collected. I think you also have some unusual HOA regulations in your state, so if they are on condos, maybe collecting HOA dues to pay off too?

You might be able to call the county or lawyer for the taxing entity and ask why.