There are times when a property owner is unable to pay the obligation in property tax. When this happen, a property owner becomes a delinquent taxpayer and a governing authority is in charge of collecting the taxes. However, if the authority is not able to collect the required property taxes, they will opt to take the final step to collect the taxes. The public auction is the final step that will take the delinquent properties to be sold. Auction is an auction ordered by the court depending on the nature of sales in the form of tax lien certificates or tax deed sales. Auction in the form of tax lien certificate entails selling of certificates to assert the total sum of taxes as well as the administrative interests and charges.
The required property tax will be achieved through a auction and the delinquent properties are offered in the amount due for the taxes, interests and fees. Tax lien auction is an open sale that is why participants may tender their bids over and under the amount required for the tax of delinquent properties. The drawback is that the buyer will not be able to recover or refund the overbid.
Purchasing a tax lien certificate to pay against the required property taxes incurred by the delinquent taxpayer.
However, the delinquent taxpayer along with the interest charges will pay the amount back to you that are about 16-18%. This kind of auction allows the buyer the possibility to acquire the property in case of fail to repay by the delinquent taxpayer. In addition, the buyer can also obtain higher percentage of interest when repayment is made.
A referee appointed by the court conducts the tax lien auction. As the auction starts the referee announces the terms of sale and the required amount of bidder’s deposit. Just like any procurement bidding process, the prospective buyer or bidder is required to pay 10 percent of the bid amount in form of certified check payable to the referee. The delinquent properties sold in a auction are sold where is and as is. This means that a bidder has no right to investigate the property prior to the auction schedule as well as inspect the interior of the property. Although the property is deemed foreclosure, it is not allowed to enter the property and do some inspection. This may seem that your bid is in uncertainty because whatever the condition of the property you are not allowed to investigate and inspect.
There are many listings offered by different websites that allows the prohibition of keying the data for the buyer or bidder. This will also let the buyer to choose the right lists that qualifies to the criteria.