Sarasota Tax Lien- Deed on Lot

8 Replies

Good Evening, 

I purchased a tax lien a couple years ago and the owner never paid.  I filed for the deed and received a certified letter last week that if I did not cover the cost owed that it would be sold at auction on July 31st.  I feel like it was a quick turn around and that was the first noticed I received regarding any information.  I am not sure if I missed another notice or if that is how the process works.  Has anyone had experience purchasing tax liens in FL?  Looking for any type of information or advise. 

Thanks for your help!

Chris

Apparently you don’t know how Tax Certificates, which is what you bought, work in FL.
As a certificate holder,you don’t “file for a deed”....a certificate gives you no rights for the deed.
It Doed give you the right to Apply to have the property sent to a Tax Deed auction. To do this, you have to pay a few hundred in fees and pay off All the other outstanding certificates, plus 18% interest, then the property gets sent to public auction. The minimum bid is the amount of money You already have into it (your certificate, the fees and all the other certificates). If no one bids the minimum you already have into it, you get the property.

Seems like you got notice of a Tax Deed auction where one of the other certificate holders is sending it to auction.

Updated almost 3 years ago

BTW, didn't mean to come off as harsh...most who post on here about FL tax certificates think they simply foreclose them out without an auction, as happens in most states.

Correct, I do not know how they work.  If everyone knew everything about real estate investing these forums wouldn't exists.

I did pay for the costs a couple months ago for the property to be brought to auction.  The wording of the certified letter that was sent makes it seem like I have to pay for it not to go to auction. 

If anyone else has any helpful information it would be greatly appreciated. 

Chris, I understand BP is a great place to learn, but if you are going to dabble in this you should understand how it works before you spend money. Sounds like their is a lot of hoops to jump through and time lines to meet or you could lose your investment. I'm sure if you search on BP and do a general Google you can find the process for Florida. You could also call the delinquent tax office and ask them what you need to be doing. Not trying to be mean.

@Chris Puglisi I've never been on the certificate holder side, as it never interested me, but I've read the notices sent out in the tax deed files in researching them.  A thirty notice is required to all owners and lien holders. That sounds like a copy of the notice sent to the owner or mtg holder, who Would have to redeem all the certificates to avoid the auction.  Read your notice again to verify.  If not, I'd call the Tax Collector office.

A tax deed can Only be issued as a result of the public Tax Deed Auction, which is the last step in the process you have initiated.

If the auction already shows up on the auction schedule, it should show you as the certificate holder (plaintiff).  Otherwise, if you look at the tax deed file, which is online in most FL counties, you should be able to verify.

I will clarify that I spent $105 on the original lien.  I figured at that cost even if I somehow loose my full investment it is worth the cost of going through and learning the process.  I will have to reach out to the tax assessor and just confirm everything with them.  Because all of this information is public, I want to make sure it is not some type of scam from someone who found my information and just sent a letter.

So lets say he goes to the auction, if he doesn't win the auction then he will receive his 105+18% and receive about $123?  Is that correct or will he also receive the amount of money he put into bringing that property to auction as well?

Joe

He gets his certificate paid off, plus whatever interest rate he bid, usually not 18%, plus reimbursement of the fees and any other certificates he paid off....yes, he gets made whole.

Thank you for the information.  This makes sense and is what I was reading when doing my research on the auction site but the letter I received made it seem like I owe all of the back taxes and fees due on the property.  I think I received the same copy of the letter the owner received.