Florida Tax Leins/Deeds

9 Replies

Good morning BP!

I am looking to dive into some tax lien sales here in Florida. Only problem is I have not the slightest idea where to start of how the process works. Anyone know much about these and wouldlike to share some knowledge?

Any information helps, Thanks!

Hello. I have some experience with the tax deed sales. There are tax deeds or tax liens and Florida does both. Remeber that a lien is just the tax certificate and a deed is interest in the property.

It used to be at the court house but now auctions are online at the comptrollers website. I think there is a 3rd party website now that you link to and create a bidder profile.

Auctions take place on set days of the week. So do your research and know what properties you want to bid on before the auction day.

You will see some properties get redeemed prior to the auction. This likely means the owner has settled their delinquent payments.

You also need funds deposited prior to bidding so be aware of that. And if you when the auction the remaining funds are due within 48 hours I believe or you forfeit the property and it goes back to auction.

Message me of you need more details. But it is pretty simple once you get to comptroller website.

Just search orange county FL comptroller tax deed sales.

Lienhub.com has a chunk of Florida and is very easy to use.

I have purchased a few, and have one going to auction soon I’d they don’t redeem.

Matthew,

You should be able to find information about all Fl counties online. For example, my county is Escambiaclerk.com. It should have a list of current and future auctions with property information too. You’ll want to check the list shortly before the auction to ensure the property hasn’t been redeemed and is no longer available, just like Eric suggested. On line registration was through real tax deed.com (also easy to set up). Keep in mind that you can always call the Clerk or Tax Collector for that county with specific questions. Good luck!

Gennifer

@Matthew Rollo 

As far as tax deeds go the bidding process itself is very straight forward once you get all your links organized. 

Here are some pointers and things to keep in mind ...

1) Select the county you wish to bid on.

2) Make a bidding account with the county you want to bid in. 

Just go to that counties comptroller website (clerk of courts website)  

3) Keep in mind you will need to have deposited 5 % of your bidding MAX amount prior to the auction. 

4) Pay for your remaining balance within 24 hours actually the same day is best. Leave no room for the owner to pay off the taxes. I've bought a property thought I was safe said heck i'll go tomorrow... when I walked up to the tax deed counter the lady said the woman who was in front of you was actually the owner she just paid off the taxes.... what are the chances of that happening to you not high but still....Leave no room for errors.

5) don't rely on google or zillow for images try to see the property yourself. When there try to get some information regarding the property  AND area from the neighbors.

6) Go deep into the public records looking for any liens the property AND homeowner may have.

You can also have a title company help you with this.

7)  Don't make the numbers work. Don't get attached to a property  if the numbers don't work move on there are many auctions and counties in florida.

 Good luck on your investing adventures !

-Andres Calderon

@Andres Calderon

In regards to:

6) Go deep into the public records looking for any liens the property AND homeowner may have.

When buying a tax deed, don't you buy it free and clear? I am new to tax deeds and just trying to get some information. That is what I inferred from the research I have done. 

@Zachary Bischoff No! not at all I wish, If that was the case I would be buying anything and everything even sight unseen and just hold it lol 

The due diligence is the most important part of tax deed investing.

What makes this such a better form of investing if that the mortgage gets wiped out, that yes.

 There are still liens that can survive the sale such as IRS Tax Lien, Department of Revenue, State, county, municipal or city liens and Utility liens. 

An important factor to keep in mind when running your numbers is to make sure that the amount of surplus funds are sufficient to pay for certain lien amounts.

Special assessments can survive the tax sale if they were approved before the sale and the payments are due after the date of the auction.

Some liens can even be negotiated.

I would love to keep going but unfortunately I put myself in a difficult situation because It would be unfair to certain individuals from here that bought some of my courses.

However I Hope this clarified your question and gave you an example of some liens that can survive the tax deed auction. 

Best of luck ! 

@Matthew Rollo You will find that most of the counties will sell what is called "over the counter" tax liens as well that offer you the full amount of interest.  If you are going for the tax deeds the interest doesn't matter anyway.  If you are bidding at the auctions, which are bid down the percentage of interest, whoever bid the least amount of interest gets the lien.  Many of the institutional investors are the ones that end up with the liens due to he 5% penalty rule which is:  If you bid below 5% and above 0% you will get a 5% penalty.  Many of the liens will be bid down to .025% and if there are several that bid the same amount on the same lien, it is random selection.  Knowing that you are making 5% for the year, providing it redeems, it is still more than a bank will give you.  With all of that you have to understand the strategy you want to work.  If you look on www.lienhub.com  you will see several county held certificates and you will be able to purchase them at full interest.  Do your due diligence to make sure you know what you're getting. 

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