RI Report: No Double Bottom with Tax Lien Certificates

No Mississippi Tax Lien Blues This Year

Hello Rogue Investors,

Native Mississippian B.B. King plays the blues for me most every August because that state’s county tax lien sales are held on the last Monday in August, which often happens to be the same day that the Missouri tax liens sales are held in every county. That means I can’t be in two places at the same time. This year you could go to sales in both states because the Missouri sales will be held on August 23rd (the fourth Monday) and the Mississippi sales will be held on August 30th (the last Monday).

Tax lien sales are already somewhat mysterious and unknown, but Mississippi tax lien sales are rarely mentioned by anyone. Not only that, but Mississippi has an over-the-counter tax deed process that is run by the State Land Commissioner.

Here is a summary of the Mississippi tax sales coming in August.

When are the sales in Missouri?

Tax lien sales are held by public auction on the last Monday in August by the county Tax Collector. At the option of the Tax Collector, a sale may be held on the first Monday in April.

How and when can I get the tax sale lists?

For the August tax lien sale, the list is advertised after the fifth day of August for two weeks in a county-published newspaper and at the courthouse where the sale is to be conducted. If a sale is held in April, the list is advertised after the 15th day of February for two weeks in a county-published newspaper and at the courthouse where the sale is to be conducted. First check to see if the list is posted online on the county Tax Collector’s website. If not, you may have to call and find out what local paper publishes the list or pick up the list at the county courthouse. Don’t forget to check out our companion resource: www.tax-lien-certificates.com.

What is the interest rate?

Earned interest is 1.5 percent per month (18 percent annually) on the initial amount of the lien only (i.e., the minimum bid only). There is no interest on the overbid, and no refund of the overbid upon redemption.

How long is the redemption period?

The redemption period is 2 years from the sale date.

What are the bidder requirements?

There are no bidder requirements per state law. Check with the county whose sale you are interested in to see what its requirements are.

When do I have to register?

There are no registration requirements per state law. Check with the county whose sale you are interested in to see what its requirements are.

How does the bidding process work?

Bidding starts at the minimum bid, which is taxes remaining due and unpaid, plus all costs incident to the sale, and goes up from there. The highest bidder is the winning bidder.

When is payment due?

Payment is due immediately. If the successful bidder fails to make the payment, the land is offered for sale again. If no one bids the amount of taxes and costs, the land is struck off to the state, but the first purchaser is liable for the amount of his bid, to be collected by suit by the Tax Collector. Once payment is collected, the land is removed as being sold to the state.

How do I foreclose on a tax lien that is not redeemed?

The Tax Collector is required to give the Clerk of the Chancery Court of the county a certified list of the land sold to individuals at the tax sale. The lists vest in the individual purchaser a perfect title to the land sold for taxes, but without the right of possession during the redemption period. When filed with the Clerk, the list provides notice to all persons in the same manner as deeds that are filed for record.

When the redemption period has expired, the Chancery Clerk will, on demand from an individual who purchased land at the tax sale, execute a deed of conveyance.

What type of deed is issued?

A tax deed. The conveyance by the Chancery Clerk vests in the purchaser a perfect title with the immediate right of possession to the land sold for taxes.

How can I buy tax deeds (sold to state properties)?

If no one bids for a property at the tax lien sale, the Tax Collector strikes it off to the state. Within 30 days of the expiration of the redemption period, the Clerk of the Chancery Court sends a certified list to the State Land Commissioner of all lands struck off to the state that have not been redeemed. The properties on these lists are entered into the state's tax forfeited inventory and offered for sale.

Detailed information on how to buy tax forfeited land from the state is at http://www.sos.ms.gov/public_lands_tax_forfeited_lands.aspx. The lists for all counties can be obtained online from this webpage (see links for “10 Hot Properties,” “Tax Forfeited Inventory,” and “Properties to be Auctioned Soon”).

The major steps in the application process are as follows. The applicant must first file a written application with all of the necessary information complete and the filing fee included. The Secretary of State's Office then contacts the County Tax Assessor for a current market value of the property and makes an investigation of the title. Once the Tax Assessor value is received, a recommendation of the offer price is made to the Governor's Office. Upon receipt of the Governor's approval, an offer letter is sent to the applicant. If the purchase money is paid by the applicant, a patent (or deed) is prepared, signed by the Governor and the Secretary of State, and sent to the applicant for filing in the Chancery Clerk's office. The process normally takes about 90 to 120 days from receipt of the application to the issuance of the patent.

Is there a legal challenge period?

For any infant who inherited or acquired the land by will and for any person of unsound mind whose land was sold for taxes, there is a right to redeem (from the state or any purchaser) within two years after attaining full age or being restored to sanity. The property owner must pay the redemption fee as well as the value of any permanent improvements on the land made after the expiration of two years from the date of the sale of the lands for taxes.

Top 10 Counties in Mississippi

(1) Hinds County
Jackson = 601-968-6587
Raymond = 601-857-5574

http://www.co.hinds.ms.us/pgs/elected/taxcollector.asp

(2) Harrison County

Gulfport = 228-865-4039

http://www.co.harrison.ms.us/departments/tax_collector/index.asp

(3) Jackson County

Pascagoula = 228-769-3074
http://www.co.jackson.ms.us/officials/tax-collector

(4) Rankin County

Brandon = 601-825-1467
http://www.rankincounty.org/TC

(5) DeSoto County

Hernando = 662-449-1340