Tax Deed Auction - Experiences?

Question

Attending my first tax deed auction on Thursday and just curious if anyone has been to a few of these and have been successful? There are only two properties on the docket, neither of which i'd normally be interested in but at the right price - why not?

Has anyone picked up some decent deals from these once you factor in the legal expenses associated with clearing title?

Steve W. · Answer

Tax deed auctions are interesting Ive only acutally attended two one in a local I say metro area and one out in the country.
In metro areas there seems to be buyer groups that have big bucks ready to plop down by the end of the auction or before the clerk closes that day(some say 24 hours) So if your trying to out bid them on something they want forget it.You'll see one guy who will spend maybe $300-400,000  sombody else may do the same.
But out in the hinterlands they ususally don't go but there are local horse traders that know a good deal and have deep pockets. But youve got a better chance out there.
Now a lot is done online where you can practice see if you can pick winners and losers you don't have to bid. Some may look good but if you didn't do your homework you would be the only bidder. 
Orlando is big bucks try online in outlying counties.
Look into Lands Available List at the Clerks office it already went through auction and no one bid. Maybe since then some big negative was eliminated.

Will Sifert · Answer

Can someone refesh my memory the way tax sales work in florida ?

The tax certificate sale is the initial sale you would attend to pay off the taxes owed on the property. People bid down the % of interest.  2 year redemption period.  After the 2 year redemptive period ends you can apply for a tax deed which would bring the property to a public auction and sold to the highest bidder.  If no one bids on it at auction then you get it (depending on if there was homestead exemption or not).

If this is correct, is it true to say that purchasing tax certificates in florida is a good investment for making a high interest rate on your money but very very unlikely for you to ever obtain ownership in the property. If you want to own property then you need to go to the tax deed auction and hope to pay 50-75% of value ?

Steve K · Answer

Florida doesn't have a protest period fortunately so you'll get immediate title to the house, although the title is nowhere near marketable.  The quiet title process isn't a big deal unless the county didn't follow the procedures of the tax deed sale properly, then you've got a legal issue.

What i was trying to find out is what discount people have found.  From past results it looks like auctions end up with discounts from .20-.65 on the dollar however in the days where even garbage goes pending within a day on the MLS I have to think that competition will be much steeper.

Andy Chu · Answer

Read the statute on how the deed is presented to you. Most of the time, it will be a Quit Claim Deed (The weakest of all deeds). See if there is a redemption period or a protest period. Read it very carefully and know what you are getting yourself into.

The legal expenses depends on how much work is needed.