Unsold tax properties

10 Replies

I am new to bigger pockets and investing. Someone told me about unsold tax properties. Can anyone tell me how to find them in my town and if they are worth it?

@Ivelisse Matos I can only speak to unsold tax liens in the state of New Jersey. The tax lien auctions are well attended and competitive and so if there is a lien that goes unsold there is usually a very good reason and the property to which the lien is attached probably has no little to no value. You can call the local municipality (tax collector's office) for this information. Best of luck.


@Michael Leffelholz

Thank you for your answer! From what I understood there is a way to get them before? So I need to search for tax lien auctions instead?

@Ivelisse Matos You're referring to "over the counter" tax deed properties.  These are properties that, once they were sent to the tax deed auction, no one was willing to bid the total amount of taxes owed.  So, if no one else wanted it for that price, why would you?

Usually the worst of the worst.  Properties I wouldn't take for free.  Generally you'll find inaccessible landlocked parcels in rural areas, vacant lots in very rough areas (usually with a municipal demolition lien plus a ton of lot clearing liens attached), odd slivers of land (ie 8 ft wide lots), or swamp land/marsh/wasteland.  Tax deed auctions are competitive, if the property has value above the taxes it will sell (and even most times when it doesn't there's still a sucker who can't pass up the chance to own something for a few thousand dollars)

@Wayne Brooks someone referred to them as a good option, not I wouldn't even get near them. I guess I was looking for tax lien auctions instead, but looks like they are a battlefield as well.

@Patrick L. Thank you for your answer, they do really sound awful, not what I was looking for. Thanks for the information!

Depending on your specific market sometimes leftover liens can be good deals. My first two tax liens were leftover liens and one was the most profitable tax lien deal I have done $36K in profit. However I had to go through hundreds of junk liens to find the few gems.

@Wayne Brooks wrote

These are properties that, once they were sent to the tax deed auction, no one was willing to bid the total amount of taxes owed. So, if no one else wanted it for that price, why would you?

In general Wayne is correct (not just here on all his posts, good guy to follow) However in very large auctions, especially online, some liens just get overlooked by random chance. I have bought a lot of liens "over the counter" that were quite good, but you are looking for a needle in the haystack.

@Ned Carey Thanks, and I've read your comments before about finding these "needles", so I'm sure it's possible there.  But Florida procedures are a little different.  We have a 2 step process where First the mass selling of the 1000's ofCertificates (referred to maybe as Liens elsewhere) occurs all at once, but these offer no property ownership possibilties, only possible interest income on the amounts.  Second, the Certificates which later haven't been redeemd after 2 years, get sent to the Tax Deed auctions, which is where the actual properties get sold.  At this point there are only about a dozen or two up for auction each month with generally more bidders than properties.  So, the possiiblity of a property that doesn't sell at the auction for the total amount of taxes owed having any real value  is even more remote.  This is of course Florida specific, where the OP is looking.

@Ned Carey thank you for your response maybe it will be good to take a look in other states to see if I can find something.

@Wayne Brooks feels like Florida, specially Orlando, it's a battlefield for these gems. It's hard for newbies to find good deals.

@Ivelisse Matos Hi Ivelisse, I am with an investor friendly title company here in Orlando and I close lots of tax deed transactions. Here is a link to Seminole Counties auction if you haven't gone there yet. https://seminolefl.realtaxlien.com/

They have a pretty good FAQ's page as well. One you get a tax deed you can then take it to a company like Cleartosell.com and they can issue you a certificate. You can then take that certificate to an Old Republic title agent like my company and get it closed and insured. If you have any other questions or need help with anything please feel free to call or email me anytime. I am always here to help and love building relationships.

Thank you!

@Ryan Kopczyk Thank you for the link, this is not were I ended when I did my research. It Is very helpful. I will search more about it to see if I find something.