As you know by now, tax lien sales are governed by state laws, some of which dictate one sale per year. In some cases, you literally have to wait until the next year to invest in that state. In other cases, state laws allows for tax lien certificates and tax deeds to be sold through another process.

This process is referred to as over-the-counter, by mail, sold to the state, county held, struck off or many other names. In general, it means you can buy directly through the county or state and sometimes earn the maximum interest.

Florida
Although I will not be talking about Florida over-the-counter sales, I want you to keep track of the lists and find out which liens are available. That is because the best time to purchase OTC liens is right after the sales. Florida sales just ended on June 1, so now is a great time to purchase. You will earn the full interest rate. You just need to be the first in line - by mail, phone or internet.

Florida has OTC liens and OTC deeds.

Let's find a list for an example of each:

Search for Citrus County Tax Collector. Their annual sale was held on via the Internet, but if you search for County-Held Certificates, you might be lucky enough to stumble upon this link: http://www.tc.citrus.fl.us/sale_certificates.htm



For OTC Deeds and Tax Deed Sales held as the need arises, you must search on the Clerk of the Circuit Court's website: OTC Deeds are called Lands Available.

http://www.clerk.citrus.fl.us/nws/home.jsp?section=8&item=88




Alabama
Sales also just occurred in Alabama. I will be sending out a special report on Alabama. In the mean time, please keep in mind that these lists are fresh, but it usually takes a little time for the counties to update the lists.

They are all available as sold to state properties. You do not need to purchase the list, contrary to what Jefferson County (Birmingham, AL) says.

Alabama calls their over-the-counter liens/deeds "Sold-to-State" land or properties. The entire list is presented for every county at this one link:

http://www.revenue.alabama.gov/advalorem/transcript/transcript.htm

In short, what you need to know about Alabama is liens automatically become deeds in 3 years so if you are looking at the list and the lien is older than 3 years, you are buying a lien that has matured to a deed.

I will save this discussion for when it looks like the list has been updated.

Texas "Struck-Off" Tax Deeds
In Texas, deeds that are not purchased at auction are referred to as "resales" or "struck-off" properties. In fact, if you attend an auction in Texas and no one bids on a property, the Constable conducting the sale will say, "Property XYZ is struck-off to the County." This allows the county to sell the deed directly to you.

It is important to remember that the redemption period for deeds in Texas is six months for all properties other than homestead or agriculture properties, which have a redemption period of two years. The redemption period starts from the date of the tax sale auction, so if you are looking at a struck-off list of non-homestead/non-agriculture properties older than six months from the date of the sale, you are buying a deed with no right of redemption period remaining.

On the other hand, if you find Texas struck-off properties that were recently added to the county's list, the redemption period may not have expired. In Texas, property owners or others with an interest in the property can redeem by paying the taxes, fees and penalties plus your 25% interest for the first year or 50% for the second year.

The truth is that most struck-off properties will be deeds, which is fine with me. I get excited about buying property for less than 50% of its market value and you should, too.

Why consider Texas "struck-off" properties?

In many Texas counties there are more liens and properties available than potential bidders. In some counties, the lists are so fresh that county personnel or attorneys who represent the county are surprised to see someone asking for the list.

So, what are the secrets to investing in Texas "struck off" properties?

   1. Learn how to screen through the lists.
   2. Do your research and due diligence just like you would with any type of real estate.
   3. Find fresh lists. Remember, many Texas counties have sales each month, so keep checking for updated struck-off lists.
   4. You need to know how to navigate the Texas system. Every county is different and the agency or law firm that handles the tax sale auctions is often not the same agency that handles the struck-off sale process.

How do you find the lists?

Many counties are handled by only a few law firms. Here is an example of one of the law firms.