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
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
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:
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
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
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
are all available as sold to state properties. You do not need to
purchase the list, contrary to what Jefferson County (Birmingham, AL)
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
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
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?
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.
Visit the Publicans website, which is Linebarger Goggan Blair & Sampson, attorneys at law:http://www.publicans.com
"Property Tax Sales" on the home page, and then on "Texas Tax Sales." This
takes you to a page with frequently asked questions and answers, as well as
a link for "Tax Sales Property Listings." Click on that link.
Step 2: Select a County and List
There are three types of sales listed:
resale, struck off and stayed no bid. A resale is a public sale of a
struck-off property (i.e., a property that did not sell at the first auction).
A struck-off is a property that, depending on the county, you can either
submit a written offer to purchase (a private sale), you can participate in a
sealed bid procedure, or you can request that the property go to a resale.
Here we will screen for a struck-off property in Ellis County.
Now that you have done your research, contact the attorney's
216 W. Franklin Street
Waxahachie, TX 75165
In this case, I learned that to purchase a struck-off property in
Ellis County, which I have never done, you must notify the county of the property you are
interested in and they will put it up for resale at a public
auction. This is not a county in which you can purchase directly through the mail.
you are dealing with a larger county like Travis County, they operate
their own struck off properties so you will deal with the county
attorney and submit a bid for review. The review process may take a
week or two and it will need to be approved at a county meeting.
I have purchased struck off properties from this county and the process is straightforward.
approved, they will provide you with a final purchase amount and you
will submit a cashier's check. The county will then record the deed in
your name or your company's name and a Sheriff's deed will be sent in a few weeks.
Step 8: Homework
Find the Travis County struck off list and screen it for 3 potential deeds that are available right now.
Has the redemption period ended?
Are any of the deeds homestead?
Do any of them look worthy?
How often does Texas have sales? Texas Struck Off lists are updated every _____?
When does the redemption period start?
I will personally work with you on Travis County or another county of your choice.
All the best,