Tax sale results

11 Replies

I attended the monthly tax sale in my county this morning. There were a total of 8 properties that went to auction. Here are the results: vacant lot, taxes owed $254.82, sold for $375; vacant lot, taxes owed $286.45, sold for $425; vacant lot, taxes owed $284.34, sold for $284.34; one acre vacant lot, taxes owed $282.74, sold for $800; house and lot, taxes owed $267.27, sold for $6,000; vacant lot, taxes owed $313.03, sold for $1450; house and lot, taxes owed $376.87, sold for $5510. I bid on the two with the houses, but my maximum was $5000. Maybe next month. I have attended several but this had more people (18) bidding than any of the others. I know that is not many people, but this is a small county and usually not much competition. It is obvious that a lot of people are learning about the auctions and the possible deals. Anyone have any success stories from the tax sales?

I drove by all but one of the vacant lots. There were two that were listed in the paper that were paid off before the auction. One of those was 6 acres of land that had not been paid as of Friday afternoon. They came in and paid the taxes Tuesday morning before the auction. Next month I will try again if there are any decent properties listed. Did you attend the auction in your county?

Originally posted by "triton63":
I drove by all but one of the vacant lots. There were two that were listed in the paper that were paid off before the auction. One of those was 6 acres of land that had not been paid as of Friday afternoon. They came in and paid the taxes Tuesday morning before the auction. Next month I will try again if there are any decent properties listed. Did you attend the auction in your county?

We did but there were only foreclosures and no tax liens for the month.

Were any of the vacant lots worth anything in your opinion?

They were in neighborhoods that were not very good. The highest value homes on the same streets are not above 30K. If the lots were in a better area then it might be worth it to try and build a small duplex. I will look closer at the foreclosures for next month. There does not seem to be many people bidding on them. I watched one auction but it only had 1 person bidding.

Triton,

Are you saying that tax liens in your county went for no more that 6K or are these tax defaulted properties that investors walked away with for only pennies on the dollar?

Originally posted by "NoteLiquidator":
Triton,

Are you saying that tax liens in your county went for no more that 6K or are these tax defaulted properties that investors walked away with for only pennies on the dollar?

This is a tax sale so the investors are buying a tax lien that entitles them to the property after a period of one year if the owner does not make good on the amount paid by the investor plus 20%.

What Justin said is correct. These are for back taxes. Georgia is a hybrid state in that you get a tax lien certificate but there is a redemption period of 12 months that the owner has a change to pay the back taxes and a 20% penalty on the taxes and any amount that was bid over the taxes owed. If the taxes owed are $500 and you bid and get it for that and the owner pays what is owed he will pay $500 plus the 20% penalty. You earn 20% on your money at the minimum and possible can get the property.

Success stories? Several acres worth now mine in front of the foothills of the Rocky Mountains because a foreigner didn't want to pay anymore taxes. Tax liens and tax deeds are great.

What happens if the homowner doesn't paid there taxes within the 12 month period? Do you get to buy the property a lower price? Let's say the property is worth only 50K but the homeowner owes 100k to the bank?

Originally posted by Calvin Neely:
What Justin said is correct. These are for back taxes. Georgia is a hybrid state in that you get a tax lien certificate but there is a redemption period of 12 months that the owner has a change to pay the back taxes and a 20% penalty on the taxes and any amount that was bid over the taxes owed. If the taxes owed are $500 and you bid and get it for that and the owner pays what is owed he will pay $500 plus the 20% penalty. You earn 20% on your money at the minimum and possible can get the property.

I'm not that familiar with GA tax sales. In the same scenario, what happens if you bid $750 and win. You paid $250 over what the tax bill was. Do you get paid interest on the $250? If the owner redeems you get all $750 back? If you get the property, does the county keep the additional $250 or do they give it to the owner who lost the property ?

Originally posted by Jose Perez:
What happens if the homowner doesn't paid there taxes within the 12 month period? Do you get to buy the property a lower price? Let's say the property is worth only 50K but the homeowner owes 100k to the bank?

In NY you will lose the house on the tax sale and with this sale all mortgages will be cleared but bank don't want this so bank would pay the taxes then.

-Uwe