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Obtaining Property via Tax Lien Sale...

How to Transfer Property via Tax Lien Sale

A tax lien sale is a public auction where properties with delinquent taxes are sold to the highest bidder. If you are interested in acquiring property through a tax lien sale, it is important to understand the process and the risks involved.

How Tax Lien Sales Work

When a property owner fails to pay their property taxes, the local government can place a tax lien on the property. This lien gives the government the right to sell the property to satisfy the unpaid taxes.

Tax lien sales are typically held once or twice a year. The properties that are sold are listed in a public notice, which is usually published in a local newspaper. The notice will include the time, date, and location of the sale, as well as a description of the properties that are being sold.

At the tax lien sale, bidders will compete to purchase the properties. The highest bidder will win the property and will receive a tax lien certificate. The tax lien certificate gives the holder the right to collect the unpaid taxes from the property owner.

Risks of Buying Property at a Tax Lien Sale

There are a number of risks involved in buying property at a tax lien sale. These risks include:

*The property may be in poor condition.** Properties that are sold at tax lien sales are often in need of repairs. The buyer may have to invest a significant amount of money to make the property habitable.

*The property may be occupied.** The property may be occupied by the former owner or by tenants. The buyer may have to evict the occupants in order to take possession of the property.

*The property may have liens against it.** The property may have other liens against it, such as mortgages or judgments. The buyer may have to pay off these liens in order to get clear title to the property.

How to Prepare for a Tax Lien Sale

If you are interested in buying property at a tax lien sale, it is important to do your research and prepare in advance. Here are a few tips:

*Attend a tax lien sale preview.** Many local governments hold previews of the properties that will be sold at tax lien sales. This is a great opportunity to inspect the properties and get a better idea of their condition.

*Get a title search.** A title search will reveal any liens or other encumbrances against the property. This information will help you to assess the risks involved in buying the property.

*Get pre-approved for a loan.** If you plan to finance your purchase, it is important to get pre-approved for a loan before the tax lien sale. This will give you a better idea of how much you can afford to bid.

Buying Property at a Tax Lien Sale

If you are prepared and you understand the risks involved, buying property at a tax lien sale can be a great way to acquire property below market value. However, it is important to remember that there are no guarantees. Do your research, prepare in advance, and bid wisely.


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