2012 Florida Tax Certificate Auction is Here!

It's late spring and that means it's time for the Florida tax certificate auction!  This tax lien auction is the largest in the nation with the total sale likely to approach $1 Billion.  That's right-- almost a billion dollars worth of liens secured by real estate in an auction that's open to the public.

How it Works

Tax lien certificates in Florida are sold either by public outcry auctions or online thru auction companies such as realtda.com and grantstreet.com.  Bidding begins at the statutory interest rate of 18% and works its way down in quarter point increments until the lowest bidder is reached.  In the event of a tie, the winner is picked randomly.  
For the online auctions, you can choose what rate and which properties you want to bid on a couple weeks prior to the actual auction date.  All you will need is to place a deposit which differs by county.

Florida Tax Certificate Process

If you win a tax certificate, you'll have to wait 22 months before you can apply to get the deed.  In most cases, the lien will payoff and you'll earn the greater of a 5% penalty or your bid rate.  
Once you file for the tax deed, you'll earn a full 18% on your entire investment if the lien redeems or you'll acquire the property (assuming it's not homestead).