In 23 states, when a
property owner does not pay his/her property taxes for an extended period
of time (often called the redemption period), the county forecloses on the
property. These foreclosed properties are sold at tax deed sales to
investors, sometimes for only the property taxes owed on the
property. Most states sell these properties at auctions. Some
states allow investors to buy properties not sold at the auction over the
counter (through the mail). It is sometimes possible to buy
properties for 75% to 90%, or more below market value at these
sales. Here is a directory of information regarding these sales.
Tax Lien Investor provides detailed information on every state
that sells tax deeds.