Alabama
Sale Type: Tax Lien Certificates
Interest Rate: 12% APR
Bid Method: Premium Bid
Redemption Period: 3 Years
Sale Date(s): May
State Statute(s): Section 40-30-1 through 40-10-198, Articles 1-7
Over-the-Counter: Yes
State Website: http://www.alabama.gov/portal/index.jsp
Interest Rate: 12% APR
Bid Method: Premium Bid
Redemption Period: 3 Years
Sale Date(s): May
State Statute(s): Section 40-30-1 through 40-10-198, Articles 1-7
Over-the-Counter: Yes
State Website: http://www.alabama.gov/portal/index.jsp
Alabama State Overview
Alabama is a tax lien certificate state, but also offers tax deed properties in select counties.
Tax sales are usually conducted in or in front of the county courthouse building or may be held in any other county owned building. Investors are required to register prior to the auction, although most counties will allow you to register the day of the auction. Upon registration investors will be given a bidder number which will be used during the tax lien auction.
Tax liens are purchased with a 3 year redemption period and a 12 percent annual rate of return or 1 percent per month. Some counties pay interest on both the minimum and premium bid amounts. The majority of the counties use a premium bidding system when auctioning the tax liens.
Alabama uses the premium bidding method at the tax sale. Bidders compete by the amount they are willing to pay above the minimum bid. The total of the delinquent taxes, interest, costs, and penalties determine the minimum bid.
The redemption period for Alabama is 3 years from the date of the sale. Following the 3 year redemption period the county judge of probate awards the deed to the property to the tax lien holder.
Over-the-counter sales in Alabama are handled on the state level it is called "sold to state," and they offer both tax liens and tax deeds. You can also contact the Commissioner of Revenue for the state to see if there are any tax liens that did not sell on the county level: Alabama Department of Revenue Property Tax Division P.O. Box 327210 Mongomery, AL 36132-7210.
In Alabama the office responsible for collecting delinquent real property taxes is a state government office.
If the state has held a Certificate of Sale less than three years from the date of sale by the county tax collection official, the Certificate will be assigned to the purchaser. If the property is not redeemed by the three year anniversary of the sale to the State, the Certificate holder can surrender the original assigned Certificate to the county redemption official and receive a tax deed upon payment of a nominal issuance fee.
If the State has held a Certificate of Sale more than three years from the date of sale by the county tax collection official, a tax deed will be issued to the purchaser by the State. Tax deeds are given without warranty or covenant of any type; it is the purchaser's responsibility to determine what, if any, interest in the property is actually being purchased. No refunds are made unless the State had no interest to sell, and then only within two years from the purchase date.
Alabama is a tax lien certificate state, but also offers tax deed properties in select counties.
Tax sales are usually conducted in or in front of the county courthouse building or may be held in any other county owned building. Investors are required to register prior to the auction, although most counties will allow you to register the day of the auction. Upon registration investors will be given a bidder number which will be used during the tax lien auction.
Tax liens are purchased with a 3 year redemption period and a 12 percent annual rate of return or 1 percent per month. Some counties pay interest on both the minimum and premium bid amounts. The majority of the counties use a premium bidding system when auctioning the tax liens.
Alabama uses the premium bidding method at the tax sale. Bidders compete by the amount they are willing to pay above the minimum bid. The total of the delinquent taxes, interest, costs, and penalties determine the minimum bid.
The redemption period for Alabama is 3 years from the date of the sale. Following the 3 year redemption period the county judge of probate awards the deed to the property to the tax lien holder.
Over-the-counter sales in Alabama are handled on the state level it is called "sold to state," and they offer both tax liens and tax deeds. You can also contact the Commissioner of Revenue for the state to see if there are any tax liens that did not sell on the county level: Alabama Department of Revenue Property Tax Division P.O. Box 327210 Mongomery, AL 36132-7210.
In Alabama the office responsible for collecting delinquent real property taxes is a state government office.
If the state has held a Certificate of Sale less than three years from the date of sale by the county tax collection official, the Certificate will be assigned to the purchaser. If the property is not redeemed by the three year anniversary of the sale to the State, the Certificate holder can surrender the original assigned Certificate to the county redemption official and receive a tax deed upon payment of a nominal issuance fee.
If the State has held a Certificate of Sale more than three years from the date of sale by the county tax collection official, a tax deed will be issued to the purchaser by the State. Tax deeds are given without warranty or covenant of any type; it is the purchaser's responsibility to determine what, if any, interest in the property is actually being purchased. No refunds are made unless the State had no interest to sell, and then only within two years from the purchase date.
Arizona
Sale Type: Tax Lien Certificates
Interest Rate: 16 % APR
Bid Method: Bid down interest rate
Redemption Period: 3 Years
Sale Date(s): February
Statute Section(s): Title 42, CH 18
Over-the-Counter: Yes
State Website: http://www.az.gov/
Interest Rate: 16 % APR
Bid Method: Bid down interest rate
Redemption Period: 3 Years
Sale Date(s): February
Statute Section(s): Title 42, CH 18
Over-the-Counter: Yes
State Website: http://www.az.gov/
Arizona State Overview
Arizona utilizes tax lien certificates to collect delinquent property taxes. Investors are drawn to Arizona due to the 16 percent interest rate. Investing is made simple in Arizona because most of the counties make the lists available online and provide online resources for researching.
Tax lien sales are held annually in the month of February. It is required that investors register before the auction starts, and in most cases the counties will allow you to register the day of the auction. When registered, the investors will be given a bidder number, which will be used to identify the investor during the tax lien sale.
Arizona has a redemption period of 3 years. The bidding process is a Bid Down Interest, which allows bidders to compete by lowering the rate of return they are willing to accept.
Arizona rate of return is 16% on Tax Lien Certificates. Property owners have a 3 year period to repay the delinquent taxes and penalties. Any time after the redemption period, but not exceeding 10 years, the investor may initiate foreclosure with the superior court in the county that the property is located in.
Bid Down Interest - Bidders compete through lowering their acceptable interest rate of return. Bidders will pay the combined total of all delinquent property taxes, penalties and fees.
Arizona utilizes tax lien certificates to collect delinquent property taxes. Investors are drawn to Arizona due to the 16 percent interest rate. Investing is made simple in Arizona because most of the counties make the lists available online and provide online resources for researching.
Tax lien sales are held annually in the month of February. It is required that investors register before the auction starts, and in most cases the counties will allow you to register the day of the auction. When registered, the investors will be given a bidder number, which will be used to identify the investor during the tax lien sale.
Arizona has a redemption period of 3 years. The bidding process is a Bid Down Interest, which allows bidders to compete by lowering the rate of return they are willing to accept.
Arizona rate of return is 16% on Tax Lien Certificates. Property owners have a 3 year period to repay the delinquent taxes and penalties. Any time after the redemption period, but not exceeding 10 years, the investor may initiate foreclosure with the superior court in the county that the property is located in.
Bid Down Interest - Bidders compete through lowering their acceptable interest rate of return. Bidders will pay the combined total of all delinquent property taxes, penalties and fees.
Colorado
Sale Type: Tax Lien Certificates
Interest Rate: 9%
Bid Method: Highest Bid
Redemption Period: 3 Years
Sale Date(s): October - December
Statute Section(s): Title 39, Article 11
Over-the-Counter: Yes
Interest Rate: 9%
Bid Method: Highest Bid
Redemption Period: 3 Years
Sale Date(s): October - December
Statute Section(s): Title 39, Article 11
Over-the-Counter: Yes
Colorado State Overview
Colorado is classified as a tax lien certificate state. County tax sales are typically held each year between October and December. The county posts a list of all tax delinquent properties prior to September first of each year. The county sends out certified notification letters to the last recorded address of the property owners as well as all parties with a vested interest in the property being sold. The county also publishes a notice of the impending sale in local newspapers for a period of four consecutive weeks. All affected property owners have the right to redeem their property by making a full payment on their delinquent taxes, penalties, and related fees prior to the posted deadline. All properties that are not redeemed will be sold at a public auction held by the respective county. The county treasurer is responsible for conducting and officiating all tax liens sold. The starting bid is the combined total of all delinquent taxes, penalties, and fees.
Tax liens are purchased with a redemption period of three years. The original property owner can redeem their property ownership at any time during the three year redemption period by submitting a full payment of all delinquent taxes, penalties, and any related fees along with the designated interest rate. If the property owner does not redeem the property during the three year redemption period, the buyer may apply for a deed to the property by presenting the tax lien certificate and paying off the property's unpaid tax balance.
Colorado has a rate of return at 9% above the federal discount rate. This means the interest rate can change from year to year. The federal discount rate is set by the federal government.
Colorado uses the "Premium Bid" method. Counties that use this method will have a starting bid that includes all delinquent taxes, penalties, and fees. Bidding starts at the set minimum and is bid up in price until the bidding stops. The highest bidder is awarded the tax lien to the property.
Many counties in Colorado, especially the larger ones (more population like Denver County, El Paso County- Colorado Springs, Adams County- Aurora, Jefferson County- Lakewood, and Larimer County- Fort Collins ) may use realauction.com for online bidding. They have some wonderful educational opportunities to get you familiar with bidding prior to the auction's start. Be sure to take advantage of that!
NOTE: In Colorado, the bidder does NOT receive back any premium bid over the tax lien amount or any interest on that amount.
Colorado is classified as a tax lien certificate state. County tax sales are typically held each year between October and December. The county posts a list of all tax delinquent properties prior to September first of each year. The county sends out certified notification letters to the last recorded address of the property owners as well as all parties with a vested interest in the property being sold. The county also publishes a notice of the impending sale in local newspapers for a period of four consecutive weeks. All affected property owners have the right to redeem their property by making a full payment on their delinquent taxes, penalties, and related fees prior to the posted deadline. All properties that are not redeemed will be sold at a public auction held by the respective county. The county treasurer is responsible for conducting and officiating all tax liens sold. The starting bid is the combined total of all delinquent taxes, penalties, and fees.
Tax liens are purchased with a redemption period of three years. The original property owner can redeem their property ownership at any time during the three year redemption period by submitting a full payment of all delinquent taxes, penalties, and any related fees along with the designated interest rate. If the property owner does not redeem the property during the three year redemption period, the buyer may apply for a deed to the property by presenting the tax lien certificate and paying off the property's unpaid tax balance.
Colorado has a rate of return at 9% above the federal discount rate. This means the interest rate can change from year to year. The federal discount rate is set by the federal government.
Colorado uses the "Premium Bid" method. Counties that use this method will have a starting bid that includes all delinquent taxes, penalties, and fees. Bidding starts at the set minimum and is bid up in price until the bidding stops. The highest bidder is awarded the tax lien to the property.
Many counties in Colorado, especially the larger ones (more population like Denver County, El Paso County- Colorado Springs, Adams County- Aurora, Jefferson County- Lakewood, and Larimer County- Fort Collins ) may use realauction.com for online bidding. They have some wonderful educational opportunities to get you familiar with bidding prior to the auction's start. Be sure to take advantage of that!
NOTE: In Colorado, the bidder does NOT receive back any premium bid over the tax lien amount or any interest on that amount.
Florida
Sale Type: Tax Lien Certificates & Tax Deeds
Interest Rate: 18% minimum of 5%
Bid Method: Bid Down Interest
Redemption Period: 2 Years
Sale Date(s): Annual Lien Sale in May; Year-Round Deed Sales
Statute Section(s): Title 14 Chapter 197
Over-the-Counter: Yes
Interest Rate: 18% minimum of 5%
Bid Method: Bid Down Interest
Redemption Period: 2 Years
Sale Date(s): Annual Lien Sale in May; Year-Round Deed Sales
Statute Section(s): Title 14 Chapter 197
Over-the-Counter: Yes
Florida State Overview
Florida is a hybrid state meaning that each county holds tax lien and tax deed auctions. All counties hold an annual tax lien sale, but the counties sell tax deeds once the unsold tax lien properties have met their two year redemption period. The tax collector generally oversees all delinquent property taxes, interests, penalties and property seizures. Public notices for upcoming auctions are usually advertised in local newspapers about 3 weeks prior to the upcoming sale. Tax lien auctions are an oral or online bidding system wherein the investors compete by bidding down the interest rate. The investor willing to pay all backtaxes, penalties, and fees and then bids the lowest interest rate receives the certificate.
Tax lien investors receive up to an 18% rate of return annually with a guaranteed minimum return of 5% on liens that redeem early. For example, if an investor purchases a tax lien certificate and it is redeemed within 30 days, the rate of return would be the annual rate divided by 12 months. At an interest rate of 18%, a certificate redeemed within 30 days would only yield 1.5%. However, in Florida, if the rate of return of the face value of the certificate is less than 5%, a mandatory rate, or penalty of 5% is guaranteed to the investor if the tax lien is redeemed within 90 days.
The "Bid Down Interest" is the method used in Florida during tax lien auctions. The tax lien certificate amount is set by the combined total of all delinquent taxes, interests, penalties, and costs. Investors will bid down the interest rate of return they are willing to accept in return for paying the certificate cost. Due to Florida's minimum 5% return, bidding can go as low as 1/4%, and still offer investors an above-average return.
Tax lien certificates may be redeemed at any time within 2 years after April 1st of the year of the issuance of the tax certificate. Following the two-year redemption period, the county is able to issue a deed to the property. The county will hold a tax deed sale to determine the new property owner. Bidding will begin with the amount the certificate holder has invested in the property, plus the interest accrued. If the certificate holder is outbid, or if he/she has no interest in gaining ownership of the property, the certificate holder will be reimbursed as if the original property owner had redeemed.
Each county in Florida does one annual tax lien certificate sale and multiple tax deed sales. The county tax collector ususally handles the annual lien sale; the county clerk of the courts usually handles the deed sale. The foreclosure of the lien sale is not "self-executing" this is why all counties have annual lien sales and frequent tax deed sales. The smaller counties usually have deed sales every two or three months, while the larger counties might hold one or more each month.
Florida is a hybrid state meaning that each county holds tax lien and tax deed auctions. All counties hold an annual tax lien sale, but the counties sell tax deeds once the unsold tax lien properties have met their two year redemption period. The tax collector generally oversees all delinquent property taxes, interests, penalties and property seizures. Public notices for upcoming auctions are usually advertised in local newspapers about 3 weeks prior to the upcoming sale. Tax lien auctions are an oral or online bidding system wherein the investors compete by bidding down the interest rate. The investor willing to pay all backtaxes, penalties, and fees and then bids the lowest interest rate receives the certificate.
Tax lien investors receive up to an 18% rate of return annually with a guaranteed minimum return of 5% on liens that redeem early. For example, if an investor purchases a tax lien certificate and it is redeemed within 30 days, the rate of return would be the annual rate divided by 12 months. At an interest rate of 18%, a certificate redeemed within 30 days would only yield 1.5%. However, in Florida, if the rate of return of the face value of the certificate is less than 5%, a mandatory rate, or penalty of 5% is guaranteed to the investor if the tax lien is redeemed within 90 days.
The "Bid Down Interest" is the method used in Florida during tax lien auctions. The tax lien certificate amount is set by the combined total of all delinquent taxes, interests, penalties, and costs. Investors will bid down the interest rate of return they are willing to accept in return for paying the certificate cost. Due to Florida's minimum 5% return, bidding can go as low as 1/4%, and still offer investors an above-average return.
Tax lien certificates may be redeemed at any time within 2 years after April 1st of the year of the issuance of the tax certificate. Following the two-year redemption period, the county is able to issue a deed to the property. The county will hold a tax deed sale to determine the new property owner. Bidding will begin with the amount the certificate holder has invested in the property, plus the interest accrued. If the certificate holder is outbid, or if he/she has no interest in gaining ownership of the property, the certificate holder will be reimbursed as if the original property owner had redeemed.
Each county in Florida does one annual tax lien certificate sale and multiple tax deed sales. The county tax collector ususally handles the annual lien sale; the county clerk of the courts usually handles the deed sale. The foreclosure of the lien sale is not "self-executing" this is why all counties have annual lien sales and frequent tax deed sales. The smaller counties usually have deed sales every two or three months, while the larger counties might hold one or more each month.
Illinois
Sale Type: Tax Lien Certificates
Interest Rate: 18%
Bid Method: Bid Down Interest
Redemption Period:2-3 years
Sale Date(s): Varies by County
State Statute(s): CH 35, Title 7
Over-the-Counter: http://www.iltaxsale.com/demo/index-2.php
Interest Rate: 18%
Bid Method: Bid Down Interest
Redemption Period:2-3 years
Sale Date(s): Varies by County
State Statute(s): CH 35, Title 7
Over-the-Counter: http://www.iltaxsale.com/demo/index-2.php
Illinois State Overview
Illinois utilizes a tax lien certificate system to collect delinquent property taxes. The state rate of return is set at 18% interest; however, bidders compete through a process of bidding down the interest rate. Illinois also conducts what is called a Scavenger Sale. These tax sales are for delinquent properties that were not sold during the annual sale. Scavenger Sales are the state's alternative to offering over-the-counter tax lien properties. Illinois is an oral bid state. Illinois requires a preregistration along with a deposit at least 10 days before the auction. Counties usually publicly announce the sale about a month prior to the sale.
Illinois uses a Premium Bid method. The county sets the tax lien amount, and bidders compete by lowering the interest rate of return. The investor willing to accept the lowest amount of interest is rewarded the lien.
A 2-year redemption period is typically the standard in Illinois. The owner of the tax lien certificate has the option to extend the redemption period to 3 years from the date of the sale.
Illinois is unique in that it holds two types of tax sales; Regular tax sales and Scavenger tax sales.
Regular Tax Sales consist of properties which were delinquent the previous year. Bidding begins at 18% and tax lien certificates are sold to the bidders willing to accept the lowest rate. The property owner has up to three years to exercise his or her right to redeem the property.
Scavenger Tax Sales consist of properties which were delinquent for two or more years. According to (Sec. 21-260) the 'minimum bid for any property shall be $250 or one-half of the tax if the total liability is less than $500.'
Penalty rate: The person at the sale offering to pay the amount due on each property for the least percentage shall be the purchaser of that property. No bid shall be accepted for a penalty exceeding the maximum of 18% (Sec. 21-215). For Regular Tax Sales, the penalty percentage is then computed through the date of redemption as a percentage of the certificate amount (Sec. 21-355)
Attaining a Tax Deed: At any time within 5 months but not less than 3 months prior to the expiration of the redemption period for property sold pursuant to judgment and order of sale under Sections 21-110 through 21-120 or 21-260, the purchaser or his or her assignee may file a petition in the circuit court in the same proceeding in which the judgment and order of sale were entered, asking that the court direct county clerk to issue a tax deed if the property is not redeemed from the sale. The petition shall be accompanied by the statutory filing fee.
Notice of filing the petition and the date on which the petitioner intends to apply for an order on the petition that a deed be issued if the property is not redeemed shall be given to occupants, owners and persons interested in the property as part of the notice provided in Sections 22-10 through 22-25, except that only one publication is required. The county clerk shall be notified of the filing of the petition and any person owning or interested in the property may, if he or she desires, appear in the proceeding.
You must record your Tax Deed: Unless the holder of the certificate purchased at any tax sale under this Code takes out the deed in the time provided by law, and records the same within one year from and after the time for redemption expires, the certificate or deed, and the sale on which it is based, shall, after the expiration of the one year period, be absolutely void with no right to reimbursement. If the holder of the certificate is prevented from obtaining a deed by injunction or order of any court, or by the refusal or inability of any court to act upon the application for a tax deed, or by the refusal of the clerk to execute the same deed, the time he or she is so prevented shall be excluded from computation of the one year period. Certificates of purchase and deeds executed by the clerk shall recite the qualifications required in this Section (Sec. 22-85).
Illinois utilizes a tax lien certificate system to collect delinquent property taxes. The state rate of return is set at 18% interest; however, bidders compete through a process of bidding down the interest rate. Illinois also conducts what is called a Scavenger Sale. These tax sales are for delinquent properties that were not sold during the annual sale. Scavenger Sales are the state's alternative to offering over-the-counter tax lien properties. Illinois is an oral bid state. Illinois requires a preregistration along with a deposit at least 10 days before the auction. Counties usually publicly announce the sale about a month prior to the sale.
Illinois uses a Premium Bid method. The county sets the tax lien amount, and bidders compete by lowering the interest rate of return. The investor willing to accept the lowest amount of interest is rewarded the lien.
A 2-year redemption period is typically the standard in Illinois. The owner of the tax lien certificate has the option to extend the redemption period to 3 years from the date of the sale.
Illinois is unique in that it holds two types of tax sales; Regular tax sales and Scavenger tax sales.
Regular Tax Sales consist of properties which were delinquent the previous year. Bidding begins at 18% and tax lien certificates are sold to the bidders willing to accept the lowest rate. The property owner has up to three years to exercise his or her right to redeem the property.
Scavenger Tax Sales consist of properties which were delinquent for two or more years. According to (Sec. 21-260) the 'minimum bid for any property shall be $250 or one-half of the tax if the total liability is less than $500.'
Penalty rate: The person at the sale offering to pay the amount due on each property for the least percentage shall be the purchaser of that property. No bid shall be accepted for a penalty exceeding the maximum of 18% (Sec. 21-215). For Regular Tax Sales, the penalty percentage is then computed through the date of redemption as a percentage of the certificate amount (Sec. 21-355)
Attaining a Tax Deed: At any time within 5 months but not less than 3 months prior to the expiration of the redemption period for property sold pursuant to judgment and order of sale under Sections 21-110 through 21-120 or 21-260, the purchaser or his or her assignee may file a petition in the circuit court in the same proceeding in which the judgment and order of sale were entered, asking that the court direct county clerk to issue a tax deed if the property is not redeemed from the sale. The petition shall be accompanied by the statutory filing fee.
Notice of filing the petition and the date on which the petitioner intends to apply for an order on the petition that a deed be issued if the property is not redeemed shall be given to occupants, owners and persons interested in the property as part of the notice provided in Sections 22-10 through 22-25, except that only one publication is required. The county clerk shall be notified of the filing of the petition and any person owning or interested in the property may, if he or she desires, appear in the proceeding.
You must record your Tax Deed: Unless the holder of the certificate purchased at any tax sale under this Code takes out the deed in the time provided by law, and records the same within one year from and after the time for redemption expires, the certificate or deed, and the sale on which it is based, shall, after the expiration of the one year period, be absolutely void with no right to reimbursement. If the holder of the certificate is prevented from obtaining a deed by injunction or order of any court, or by the refusal or inability of any court to act upon the application for a tax deed, or by the refusal of the clerk to execute the same deed, the time he or she is so prevented shall be excluded from computation of the one year period. Certificates of purchase and deeds executed by the clerk shall recite the qualifications required in this Section (Sec. 22-85).
Indiana
Sale Type: Tax Lien Certificates
Interest Rate: 10%
Penalty 1st 6 months, 15% Penalty 2nd 6 months
Bid Method: Premium Bid
Redemption Period:1 Year
Sale Date(s): Varies by county (August - October)
Statute Section(s): Title 6, Artical 1.1, CH 24
Over-the-Counter: No
Interest Rate: 10%
Penalty 1st 6 months, 15% Penalty 2nd 6 months
Bid Method: Premium Bid
Redemption Period:1 Year
Sale Date(s): Varies by county (August - October)
Statute Section(s): Title 6, Artical 1.1, CH 24
Over-the-Counter: No
Indiana State Overview
Indiana is classified as a tax lien state. Prior to July 1st of each year the county treasurer will notify the county auditor of all delinquent properties eligible for the annual sale. Tax sales are usually conducted between August through November. The tax sale is conducted as an oral public auction. Tax liens are purchased with a one year right of redemption with an interest rate ranging from 10%-15%. If the property owner does not pay all delinquent taxes, interest, penalties, and fees by the end of the twelve month period, the investor may begin the process of obtaining a tax deed. The lien holder must begin the foreclosure process within nine months of the sale date. A tax deed may be obtained 1 year after the date of sale, but no later than 6 months after the expiration of the redemption period.
Indiana's interest rate of return ranges from 10% -15% depending on when it is redeemed. This rate is a penalty which is a flat rate and does not accrue with time. A rate of 10% applies to properties redeemed within 6 months of the sale and 15% for properties redeemed after 6 months, but no more than 1 year.
Indiana uses the Premium Bid method. The counties starting bid will include all back taxes, penalties, interest, and administrative cost. The lien is bid up in price with the investor bidding the highest amount receiving the tax lien certificate. The difference between the minimum bid, and the successful bid price is known as the tax Sale Overbid. This money goes into a tax sale surplus fund and may be claimed by either the former property owner who lost ownership rights or the tax lien certificate holder if the property redeems.
The foreclosure process in Indiana is outlined as follows:
Uncontested Foreclosure: 4½ - 6 months minimum.
Tax Sale Type: Tax Lien Certificate (Sec. 6-1.1-24-9 ).
Contact: County Treasurer. (Sec. 6-1.1-24-5(e) ).
Interest Rate and/or Penalty Rate: 10% to 15% penalty. (Sec. 6-1.1-25-2 <).
Bid Procedure: The highest or greatest bid. (Sec. 6-1.1-24-5 ).
Redemption Period: One year. (Sec. 6-1.1-25-4 ).
Law: Indiana Code, Title 6, Article 1.1, Chapter 24, "Sale of Real Property When Taxes or Special Assessments Become Delinquent," and Chapter 25, "Redemption of and Tax Deeds for Real Property Sold for Delinquent Taxes and Special Assessments."
Additional Notes:Penalty interest rate paid upon redemption The tax lien certificate holder will receive a 10% to 15% penalty, depending on when the home owner exercises his or her right to redeem. According to (Sec. 6-1.1-25-2 ) when redeemed, the home owner will have to pay as follows:
For the minimum bid (delinquent taxes, special assessments, etc.):
Consquently, according to (Sec. 6-1.1-25-7 (a) ) if the purchaser 'fails to file the petition within the period provided in section 4.6 of this chapter, that person's lien against the real property terminates at the end of that period.'
In addition, according to (Sec. 6-1.1-25-7 (b) ):
'If the notice under section 4.5 of this chapter is not given within the period specified in section 4.5(a)(3) or 4.5(c)(3) of this chapter, the lien of the: (1) purchaser of the property; or (2) purchaser of the certificate of sale under IC 6-1.1-24; against the real property terminates at the end of that period.''Notice' according to (Sec. 6-1.1-25-4.5 ) includes a notice 'not later than ninety (90) days after the date of sale of the certificate' and a second notice ' not later than nine (9) months after the date of the sale'.
Indiana is classified as a tax lien state. Prior to July 1st of each year the county treasurer will notify the county auditor of all delinquent properties eligible for the annual sale. Tax sales are usually conducted between August through November. The tax sale is conducted as an oral public auction. Tax liens are purchased with a one year right of redemption with an interest rate ranging from 10%-15%. If the property owner does not pay all delinquent taxes, interest, penalties, and fees by the end of the twelve month period, the investor may begin the process of obtaining a tax deed. The lien holder must begin the foreclosure process within nine months of the sale date. A tax deed may be obtained 1 year after the date of sale, but no later than 6 months after the expiration of the redemption period.
Indiana's interest rate of return ranges from 10% -15% depending on when it is redeemed. This rate is a penalty which is a flat rate and does not accrue with time. A rate of 10% applies to properties redeemed within 6 months of the sale and 15% for properties redeemed after 6 months, but no more than 1 year.
Indiana uses the Premium Bid method. The counties starting bid will include all back taxes, penalties, interest, and administrative cost. The lien is bid up in price with the investor bidding the highest amount receiving the tax lien certificate. The difference between the minimum bid, and the successful bid price is known as the tax Sale Overbid. This money goes into a tax sale surplus fund and may be claimed by either the former property owner who lost ownership rights or the tax lien certificate holder if the property redeems.
The foreclosure process in Indiana is outlined as follows:
Uncontested Foreclosure: 4½ - 6 months minimum.
- Filing of the Complaint
- Service of process on the debtor: occurs in 5-10 days unless service by publication
- Application for default judgment: can be sought 21-24 days after service of process
- Entry of default judgment and decree of foreclosure: should occur within approximately 30 days after the Application is filed.
- Praecipe for Sheriff's sale, including notice of same: by statute, cannot be filed until 3 months after the Complaint.
- Sheriff's sale: happens about 45-90 days from Praecipe, depending on the county.
- Filing of the Complaint
- Service of process on the debtor: occurs in 5-10 days unless service by publication.
- Appearance of debtor's attorney and motion for one or more 30-day extensions of time to respond to the complaint: filed 20-23 days after service of process.
- Answer to Complaint: filed 30 days after filing of Appearance and expiration of last motion for extension5. Motion for summary judgment: can be filed immediately after the filing of the Answer.
- Objection to motion for summary judgment: due 30 days after the filing of the motion for summary judgment.
- Summary judgment hearing: usually held 75-120 days after the motion is filed.
- Entry of judgment and decree of foreclosure: occurs on day of hearing, or soon thereafter, unless the motion is vigorously contested with viable defenses.
- Praecipe for Sheriff's sale: can be submitted immediately after the entry of judgment assuming more than 3 months have passed since the complaint was filed.
- Sheriff's sale: takes place 45-90 days from Praecipe, depending on the county.
Tax Sale Type: Tax Lien Certificate (Sec. 6-1.1-24-9 ).
Contact: County Treasurer. (Sec. 6-1.1-24-5(e) ).
Interest Rate and/or Penalty Rate: 10% to 15% penalty. (Sec. 6-1.1-25-2 <).
Bid Procedure: The highest or greatest bid. (Sec. 6-1.1-24-5 ).
Redemption Period: One year. (Sec. 6-1.1-25-4 ).
Law: Indiana Code, Title 6, Article 1.1, Chapter 24, "Sale of Real Property When Taxes or Special Assessments Become Delinquent," and Chapter 25, "Redemption of and Tax Deeds for Real Property Sold for Delinquent Taxes and Special Assessments."
Additional Notes:Penalty interest rate paid upon redemption The tax lien certificate holder will receive a 10% to 15% penalty, depending on when the home owner exercises his or her right to redeem. According to (Sec. 6-1.1-25-2 ) when redeemed, the home owner will have to pay as follows:
For the minimum bid (delinquent taxes, special assessments, etc.):
- (110%) of the minimum bid if redeemed 'not more than six (6) months after the date of sale; or'
- (115%) of the minimum bid if redeemed 'more than six (6) months but not more than one (1) year after the date of the sale.'
- 'plus ten percent (10%) per annum on the amount by which the purchase price exceeds the minimum bid on the property.'
Consquently, according to (Sec. 6-1.1-25-7 (a) ) if the purchaser 'fails to file the petition within the period provided in section 4.6 of this chapter, that person's lien against the real property terminates at the end of that period.'
In addition, according to (Sec. 6-1.1-25-7 (b) ):
'If the notice under section 4.5 of this chapter is not given within the period specified in section 4.5(a)(3) or 4.5(c)(3) of this chapter, the lien of the: (1) purchaser of the property; or (2) purchaser of the certificate of sale under IC 6-1.1-24; against the real property terminates at the end of that period.''Notice' according to (Sec. 6-1.1-25-4.5 ) includes a notice 'not later than ninety (90) days after the date of sale of the certificate' and a second notice ' not later than nine (9) months after the date of the sale'.
Iowa
Sale Type: Tax Lien Certificates
Interest Rate: 24% per annual
Bid Method: Rotational
Redemption Period: 1.75 years
Sale Date(s): 3rd Monday in June
State Statute(s): Title X , CH 446 - 448
Over-the-Counter: No
Interest Rate: 24% per annual
Bid Method: Rotational
Redemption Period: 1.75 years
Sale Date(s): 3rd Monday in June
State Statute(s): Title X , CH 446 - 448
Over-the-Counter: No
Iowa State Overview
Iowa is classified as a tax lien state. On the third Monday in June of each year, the county treasurer will conduct a public sale of all the parcels that are delinquent on their property taxes. The tax sales are conducted as an oral public auction, although bids may also be mailed. Tax liens are purchased with a two year right of redemption. The rate of return is 24% annually, or 2% per month. Technically, liens are awarded based on the bidder willing to accept the lowest percentage of ownership of the property. However, most county treasurers don't utilize this system due to its complicated nature. Most counties use either a random selection process, or a rotational bidding system. If the property owner does not pay all delinquent taxes, interest, penalties, and fees by one year and nine months into the redemption period, the investor may begin the process of terminating the right to redeem. The lien holder must file a "90 day notice of right of redemption affidavit."
Iowa uses a few types of bidding methods. The "bid down ownership" method where investors compete by bidding down how much of the property will be security for the lien. Using this system, in order for a lien holder to prosecute the foreclosure, they would have to file a court action to sell the property,and then divide the process based on the percentage of ownership they hold. Because of this system's obvious flaws, counties utilize a "Rotational Bidding System" or a "Random Selection" method. In rotational bidding the county treasurer offers tax liens to investors based on a list of all investors present. When an investor comes next on the list, they are given the opportunity to purchase the lien being offered. If they choose to decline, the lien is then offered to the next investor listed. In the process of random selection investors are randomly drawn and given the choice to purchase the line being offered.
Iowa has a two year right of redemption. If the property owner does not pay all delinquent taxes, interest, penalties, and fees by one year and nine months into the redemption period, the investor may begin the process of terminating the right to redeem. The lien holder must file a "90 day notice of right of redemption affidavit". If a lien holder fails to file a 90 day notice on a certificate after a period of 3 years from the date of sale, the county treasurer may cancel the lien.
Iowa is classified as a tax lien state. On the third Monday in June of each year, the county treasurer will conduct a public sale of all the parcels that are delinquent on their property taxes. The tax sales are conducted as an oral public auction, although bids may also be mailed. Tax liens are purchased with a two year right of redemption. The rate of return is 24% annually, or 2% per month. Technically, liens are awarded based on the bidder willing to accept the lowest percentage of ownership of the property. However, most county treasurers don't utilize this system due to its complicated nature. Most counties use either a random selection process, or a rotational bidding system. If the property owner does not pay all delinquent taxes, interest, penalties, and fees by one year and nine months into the redemption period, the investor may begin the process of terminating the right to redeem. The lien holder must file a "90 day notice of right of redemption affidavit."
Iowa uses a few types of bidding methods. The "bid down ownership" method where investors compete by bidding down how much of the property will be security for the lien. Using this system, in order for a lien holder to prosecute the foreclosure, they would have to file a court action to sell the property,and then divide the process based on the percentage of ownership they hold. Because of this system's obvious flaws, counties utilize a "Rotational Bidding System" or a "Random Selection" method. In rotational bidding the county treasurer offers tax liens to investors based on a list of all investors present. When an investor comes next on the list, they are given the opportunity to purchase the lien being offered. If they choose to decline, the lien is then offered to the next investor listed. In the process of random selection investors are randomly drawn and given the choice to purchase the line being offered.
Iowa has a two year right of redemption. If the property owner does not pay all delinquent taxes, interest, penalties, and fees by one year and nine months into the redemption period, the investor may begin the process of terminating the right to redeem. The lien holder must file a "90 day notice of right of redemption affidavit". If a lien holder fails to file a 90 day notice on a certificate after a period of 3 years from the date of sale, the county treasurer may cancel the lien.
- Tax Sale Type: Tax Lien Certificate (Sec. 446.1).
- Contact: The county treasurer or tax collector (Sec. 446.7).
- Interest Rate and/or Penalty Rate: 24% per annum (Sec. 447.1)
- Bid Procedure: Bid down ownership interest (Sec. 446.16).
- Redemption Period: 2 years (See "Notes"). (Sec. 447.9).
- Law: Code of Iowa, Title X, Subtitle 2, Chapter 446, "Tax Sales," Chapter 447, "Tax Redemption," and Chapter 448, "Tax Deeds."
- In the statutes, Iowa law states that the bid method used it suppose to be bid down the ownership of a property (although almost every county does random selection and rotational bidding). What that means is that you are bidding down the amount that backs a lien. So, if the property owner does not redeem in the said time, the investor is able to foreclose and own only the percentage of the property that they won the bid on.
- The redemption period in this state does not automatically terminate, the lien holder is able to file after 1 year, 9 months, and can become the owner at 2 years if not redeemed. If the lien holder does nothing after three years they can lose their claim to the property.
Maryland
Sale Type: Tax Lien Certificate
Interest Rate: 24% Baltimore City, 20% Garrett County, 20% Montgomery County,24% Price George's County
Bid Method: Premium Bid
Redemption Period: 6 Months
Sale Date(s): Year Round
State Statute(s): Title 14
Over-the-Counter: Yes
Interest Rate: 24% Baltimore City, 20% Garrett County, 20% Montgomery County,24% Price George's County
Bid Method: Premium Bid
Redemption Period: 6 Months
Sale Date(s): Year Round
State Statute(s): Title 14
Over-the-Counter: Yes
Maryland State Overview
Maryland utilizes a tax lien certificate system to collect delinquent property taxes. Tax sale dates are determined and vary by individual counties. Sales are published in the local newspaper and is circulated for 4 successive weeks. Registration rules vary per county, but most usually allow bidders to register on the day of the tax sale. Tax sales are conducted through an oral bid system. One advantage found in Maryland is the system used to collect payment from investors. The minimum bid amount which is all back taxes, penalties, and fees is due immediately, but the premium or overbid is only required when the investor files for foreclosure. This means if the property is redeemed, the investor never pays the overbid or surplus.
The rate of return in Maryland varies from 6% - 24% depending on the county. Many counties also have penalty rates included the return which positively affect the overall rate of return. Penalty rates are a flat percentage of the investment and do not accrue with time and dramatically change the overall rate of return in the investors favor.
Maryland uses the Premium Bid method. The starting or minimum bid includes all back taxes, penalties, interest, and administrative costs. The lien will then be bid up in price until a high bid has been established. The highest bidder will receive the tax lien certificate to the property.
Maryland has no specific redemption period which investors can begin the pursue foreclosure anytime after 6 months from the auction date. However, if a foreclosure proceeding are not filed within 2 years of the sales date the certificate becomes void.
Maryland utilizes a tax lien certificate system to collect delinquent property taxes. Tax sale dates are determined and vary by individual counties. Sales are published in the local newspaper and is circulated for 4 successive weeks. Registration rules vary per county, but most usually allow bidders to register on the day of the tax sale. Tax sales are conducted through an oral bid system. One advantage found in Maryland is the system used to collect payment from investors. The minimum bid amount which is all back taxes, penalties, and fees is due immediately, but the premium or overbid is only required when the investor files for foreclosure. This means if the property is redeemed, the investor never pays the overbid or surplus.
The rate of return in Maryland varies from 6% - 24% depending on the county. Many counties also have penalty rates included the return which positively affect the overall rate of return. Penalty rates are a flat percentage of the investment and do not accrue with time and dramatically change the overall rate of return in the investors favor.
Maryland uses the Premium Bid method. The starting or minimum bid includes all back taxes, penalties, interest, and administrative costs. The lien will then be bid up in price until a high bid has been established. The highest bidder will receive the tax lien certificate to the property.
Maryland has no specific redemption period which investors can begin the pursue foreclosure anytime after 6 months from the auction date. However, if a foreclosure proceeding are not filed within 2 years of the sales date the certificate becomes void.
- Tax Sale Type: Tax Lien Certificates (Sec. 14-820).
- Contact: Tax Collector. (Sec. 14-808).
- Interest Rate and/or Penalty Rate: 6% to 24% per annum. (Sec. 14-820).
- Bid Procedure: Premium bid / highest bid. (Sec. 14-817 (a) (2)).
- Redemption Period: 6 months. (Sec. 14-833).
- Law: Annotated Code of Maryland, Tax-Property Article, Title 14, Subtitle 8, Part III, "Tax Sales."
- Property owner retains possession during redemption: According to (Sec. 14-830) the 'owner of any property sold under the provisions of this subtitle shall have the right, during the period of redemption, to continue in possession of, and to exercise all rights of ownership over the property until the right of redemption has been finally foreclosed...'
- Attaining a Tax Deed: According to (Sec. 14-833) the owner of a tax lien certificate can file for a tax deed six (6) months after the purchase of the tax lien but no later than two (2) years from the date the tax lien certificate was purchased.
Kentucky
Sale Type: Tax Lien Certificates
Interest Rate: 12%
Bid Method: Premium Bid
Redemption Period: 1 Year
Sale Date(s): April-May
State Statute(s): Title IX, CH 91, Title XI, CH 134
Over-the-Counter: No
State Website: http://www.kentucky.gov/
Interest Rate: 12%
Bid Method: Premium Bid
Redemption Period: 1 Year
Sale Date(s): April-May
State Statute(s): Title IX, CH 91, Title XI, CH 134
Over-the-Counter: No
State Website: http://www.kentucky.gov/
Kentucky State Overview
Kentucky is classified as a tax lien state. Tax sales re usually conducted in April of each year. The local county tax collector or local Sheriff will conduct a public sale of all parcels that are delinquent on their property taxes. The tax sales are conducted as an oral public auction and uses a premium bidding method. Tax Liens in Kentucky are purchased with a one year right of redemption. The rate of return is 12% annually, or 1% per month. The state also enforces a penalty of 10% of the total lien amount as compensation to the local tax collector. This amount is paid by the investor as part of the lien's minimum bid, and is ultimately paid upon redemption by the property owner.
Kentucky uses a premium bid method. The counties starting bid will include the back taxes, penalties, interest and any administrative cost. The lien will be bid up in price until the bidding stops. The investor bidding the highest amount will receive the tax lien certificates to the property.
Tax liens in Kentucky are purchased with a one year right of redemption. If the property owner does not pay all delinquent taxes, interest, penalties,a nd fees within one year, the investor may begin the process of terminating the right of redemption. Within 50 days of purchasing a tax lien certificate the lien holder is responsible for sending a notice to the property owner. The notice must advise the owner of the penalty rate of 12%, as well as the impending consequences and legal actions if payment is not made.Tax deeds are obtainable through judicial foreclosure following the 1 year redemption period.
In Kentucky, the tax collector or treasurer will sell tax lien certificates to the winning bidders at the delinquent property tax sale.
Kentucky is classified as a tax lien state. Tax sales re usually conducted in April of each year. The local county tax collector or local Sheriff will conduct a public sale of all parcels that are delinquent on their property taxes. The tax sales are conducted as an oral public auction and uses a premium bidding method. Tax Liens in Kentucky are purchased with a one year right of redemption. The rate of return is 12% annually, or 1% per month. The state also enforces a penalty of 10% of the total lien amount as compensation to the local tax collector. This amount is paid by the investor as part of the lien's minimum bid, and is ultimately paid upon redemption by the property owner.
Kentucky uses a premium bid method. The counties starting bid will include the back taxes, penalties, interest and any administrative cost. The lien will be bid up in price until the bidding stops. The investor bidding the highest amount will receive the tax lien certificates to the property.
Tax liens in Kentucky are purchased with a one year right of redemption. If the property owner does not pay all delinquent taxes, interest, penalties,a nd fees within one year, the investor may begin the process of terminating the right of redemption. Within 50 days of purchasing a tax lien certificate the lien holder is responsible for sending a notice to the property owner. The notice must advise the owner of the penalty rate of 12%, as well as the impending consequences and legal actions if payment is not made.Tax deeds are obtainable through judicial foreclosure following the 1 year redemption period.
In Kentucky, the tax collector or treasurer will sell tax lien certificates to the winning bidders at the delinquent property tax sale.
- Tax Sale Type: Tax Lien Certificate (Sec. 134.450).
- Contact: The Sheriff or Tax Collector (Sec. 134.450).
- Interest Rate and/or Penalty Rate: 12% per annum. (Sec. Sec. 134.490).
- Bid Procedure: Premium / Highest Bid. (Sec. 134.450).
- Redemption Period: One (1) year. (Sec. 134.470 and Sec. 134.480).
- Law: Kentucky Revised Statutes, Title XI, Chapter 134, "Payment, Collection, and Refund of Taxes."
- Notification According to (Sec. 134.490) the purchaser must, within 50 days after the purchase of a certificate of delinquency (tax lien certificate) give 'notice' according to the stipulations outlined in Sec. 134.490 to the owner of the tax delinquent property.
Nebraska
Sale Type: Tax Lien
Interest Rate: 10% per annum + 2% penalty
Bid Method: Rotational
Redemption Period: 3 Years
Sale Date(s): First Monday in March
State Statute(s): Chapter 77
Over-the-Counter: Yes
Interest Rate: 10% per annum + 2% penalty
Bid Method: Rotational
Redemption Period: 3 Years
Sale Date(s): First Monday in March
State Statute(s): Chapter 77
Over-the-Counter: Yes
Nebraska State Overview
Nebraska counties hold their tax lien auctions annually on the first Monday of March. These tax sales are usually directed by the treasurer at the county courthouse or similar facility. Nebraska counties also work similarly to Iowa counties when it comes to the bid method. According to state law they have a "bid down the ownership" method; however, many of the counties choose to do a random selection or rotational method.
In Nebraska, county treasurer's and tax collector's sell tax lien certificates to the winning bidder at the delinquent property tax sale.
Nebraska counties hold their tax lien auctions annually on the first Monday of March. These tax sales are usually directed by the treasurer at the county courthouse or similar facility. Nebraska counties also work similarly to Iowa counties when it comes to the bid method. According to state law they have a "bid down the ownership" method; however, many of the counties choose to do a random selection or rotational method.
In Nebraska, county treasurer's and tax collector's sell tax lien certificates to the winning bidder at the delinquent property tax sale.
- Tax Sale Type: Tax Lien Certificate. (Sec. 77-1818).
- Contact: The County Treasurer. (Sec. 77-1802).
- Interest Rate and/or Penalty Rate: 14% per annum. (Sec. 77-1824 and Sec. 45-104.01 ).
- Bid Procedure: Bid down ownership interest. (Sec. 77-1807).
- Redemption Period: Three (3) years. (Sec. 77-1837).
- Law: Nebraska Revised Statutes, Chapter 77, Article 18, "Collection of Delinquent Real Estate Taxes by Sale of Real Estate," and Article 19 "Collection of Delinquent Real Estate Taxes Through Court Proceedings."
Montana
Sale Type: Tax Lien
Interest Rate: 10%
Bid Method: Highest Bidder
Redemption Period: 3 Years
Sale Date(s): July
State Statute(s): 15-17-911
Over-the-Counter:No
Interest Rate: 10%
Bid Method: Highest Bidder
Redemption Period: 3 Years
Sale Date(s): July
State Statute(s): 15-17-911
Over-the-Counter:No
Montana State Overview
In Montana, county treasurer's and tax collector's sell tax lien certificates to the winning bidder at the delinquent property tax lien sales.
Proof of Notice: According to (Sec. 15-18-212) 'not more than 60 days prior to and not more than 60 days following the expiration of the redemption period...' the purchaser or assignee 'shall notify all persons considered interested parties in the property, if any, that a tax deed will be issued to the purchaser or assignee unless the property tax lien is redeemed prior to the expiration date of the redemption period...'.
If the purchaser or assignee fails to notify all persons considered interested parties in the property as defined in Sec. 15-18-212 'the county treasurer shall cancel the property tax lien evidenced by the tax lien sale certificate...'.
In Montana, county treasurer's and tax collector's sell tax lien certificates to the winning bidder at the delinquent property tax lien sales.
- Tax Sale Type: Tax Lien Certificate (Sec. 15-17-212).
- Contact: County Treasurer. (Sec. 15-17-211).
- Interest Rate and/or Penalty Rate: 10% per annum. (Sec. 15-16-102).
- Bid Procedure: Premium bid / highest bid. (Sec. 15-17-214).
- Redemption Period: Two (2) or three (3) years. (Sec. 15-18-111).
- Law: Montana Code Annotated, Title 15, Chapter 17, "Tax Sales," and Chapter 18, "Ownership Interests in Land Sold for Taxes."
Proof of Notice: According to (Sec. 15-18-212) 'not more than 60 days prior to and not more than 60 days following the expiration of the redemption period...' the purchaser or assignee 'shall notify all persons considered interested parties in the property, if any, that a tax deed will be issued to the purchaser or assignee unless the property tax lien is redeemed prior to the expiration date of the redemption period...'.
If the purchaser or assignee fails to notify all persons considered interested parties in the property as defined in Sec. 15-18-212 'the county treasurer shall cancel the property tax lien evidenced by the tax lien sale certificate...'.
Nevada
Sale Type: Hybrid Tax Deed
Interest Rate :12% APR
Bid Method: Highest Bidder
Redemption Period: 2 Years
Sale Date(s): Year Round
State Statute(s): Chapter 361
Interest Rate :12% APR
Bid Method: Highest Bidder
Redemption Period: 2 Years
Sale Date(s): Year Round
State Statute(s): Chapter 361
Nevada State Overview
In Nevada, county treasurers sell tax deeds to the winning bidders at the delinquent tax deed sales.
Clark County is an exception to the state's rules. Tax lien certificates are offered in Clark County (Las Vegas).
In Nevada, county treasurers sell tax deeds to the winning bidders at the delinquent tax deed sales.
- Tax Sale Type: Tax Deed (Sec. 361.595 (4)).
- Contact: County Treasurer. (Sec. 361.595).
- Interest Rate and/or Penalty Rate: Not applicable.
- Bid Procedure: Premium bid / highest bid. (Sec. 361.595 (2)).
- Redemption Period: Not applicable.
- Law: Nevada Revised Statutes, Chapter 361, "Property Tax."
Clark County is an exception to the state's rules. Tax lien certificates are offered in Clark County (Las Vegas).
New Jersey
Sale Type: Tax Liens
Interest Rate: 18% per annum
Bid Method: Bid down the interest or premium
Redemption Period: 2 years
Sale Date(s): Varies by county
Statute Section(s): Title 54, Subtitle 2 CH 5
Over-the-Counter: No
State Website: Div. of Local Govt. Svcs.
Interest Rate: 18% per annum
Bid Method: Bid down the interest or premium
Redemption Period: 2 years
Sale Date(s): Varies by county
Statute Section(s): Title 54, Subtitle 2 CH 5
Over-the-Counter: No
State Website: Div. of Local Govt. Svcs.
New Jersey State Overview
New Jersey law requires all 566 municipalities to hold at least one tax sale per year if the municipality has delinquent property taxes and/or municipal charges. You can obtain information on upcoming tax sales by contacting the tax collector in the municipality in question, or from the web site of the Tax Collectors & Treasurers Association of New Jersey: www.tctanj.org/taxsale.html.
In New Jersey, county treasurer's and tax collector's sell tax lien certificates to the winning bidder at the delinquent property tax sale.
Amount to Redeem: According to (Sec. 54:5-32) the 'sale shall be made in fee to such person as will purchase the property, subject to redemption at the lowest rate of interest, but in no case in excess of 18% per annum. If at the sale a person shall offer to purchase subject to redemption at a rate of interest less than 1%, he may, in lieu of any rate of interest to redeem, offer a premium over and above the amount of taxes, assessments or other charges, as in this chapter specified, due the municipality, and the property shall be struck off and sold to the bidder who offers to pay the amount of such taxes, assessments or charges, plus the highest amount of premium...'.
In addition, according to (Sec. 54:5-32) When the tax title certificate amount shall exceed the sum of $5,000, such additional sum shall be equal to 4% of such amount paid; and when the tax title certificate amount exceeds $10,000, such additional sum shall be equal to 6% of such amount paid. This section shall also apply to all existing tax title certificates held by municipalities on the effective date of P.L.1991, c.75.
New Jersey law requires all 566 municipalities to hold at least one tax sale per year if the municipality has delinquent property taxes and/or municipal charges. You can obtain information on upcoming tax sales by contacting the tax collector in the municipality in question, or from the web site of the Tax Collectors & Treasurers Association of New Jersey: www.tctanj.org/taxsale.html.
In New Jersey, county treasurer's and tax collector's sell tax lien certificates to the winning bidder at the delinquent property tax sale.
- Tax Sale Type: Tax Lien Certificates (Sec. 54:5-46).
- Contact: Tax Collector. (Sec. 54:5-19).
- Interest Rate and/or Penalty Rate: 18% per annum and 4% - 6% penalty. (Sec. 54:5-61 and (Sec. 54:5-32 ).
- Bid Procedure: Bid down interest rate or premium bid / highest bid. (Sec. 54:5-32).
- Redemption Period: Two (2) years. (Sec. 54:5-86).
- Law: New Jersey Revised Statutes, Title 54, Subtitle 2, Chapter 5, "Tax Sale Law."
Amount to Redeem: According to (Sec. 54:5-32) the 'sale shall be made in fee to such person as will purchase the property, subject to redemption at the lowest rate of interest, but in no case in excess of 18% per annum. If at the sale a person shall offer to purchase subject to redemption at a rate of interest less than 1%, he may, in lieu of any rate of interest to redeem, offer a premium over and above the amount of taxes, assessments or other charges, as in this chapter specified, due the municipality, and the property shall be struck off and sold to the bidder who offers to pay the amount of such taxes, assessments or charges, plus the highest amount of premium...'.
In addition, according to (Sec. 54:5-32) When the tax title certificate amount shall exceed the sum of $5,000, such additional sum shall be equal to 4% of such amount paid; and when the tax title certificate amount exceeds $10,000, such additional sum shall be equal to 6% of such amount paid. This section shall also apply to all existing tax title certificates held by municipalities on the effective date of P.L.1991, c.75.
Rhode Island
Sale Type: Tax Lien Certificates/Tax Deeds
Interest Rate: 10%+1%
Bid Method: Highest Bidder
Redemption Period: 1 Year
Sale Date(s): Year Round
State Statute(s): Title 44, CH 9
Over-the-Counter: No
State Website: www.ri.gov
Interest Rate: 10%+1%
Bid Method: Highest Bidder
Redemption Period: 1 Year
Sale Date(s): Year Round
State Statute(s): Title 44, CH 9
Over-the-Counter: No
State Website: www.ri.gov
Rhode Island State Overview
In Rhode Island, tax collector's sell tax deeds (hybrid tax deed) with a 1 year right of redemption. The original owner may redeem by paying the purchase price plus a 10% penalty plus 1% per month after 6 months.
In Rhode Island, tax collector's sell tax deeds (hybrid tax deed) with a 1 year right of redemption. The original owner may redeem by paying the purchase price plus a 10% penalty plus 1% per month after 6 months.
- Tax Sale Type: Hybrid Tax Deed. (Sec. 44-9-12).
- Contact: Tax Collector. (Sec. 44-9-7).
- Interest Rate and/or Penalty Rate: Ten (10%) penalty if redeemed within six (6) months of the date of sale, and an additional one (1%) percent penalty for each succeeding month. (Sec. 44-9-19) and (Sec. 44-9-21).
- Bid Procedure: Premium bid / highest bid. (Sec. 44-9-8).
- Redemption Period: One (1) year. (Sec. 44-9-25).
- Law: General Laws of Rhode Island, Title 44, Chapter 9 - "Tax Sales".
South Carolina
Sale Type: Lien Certificates
Interest Rate: 3%-12%
Bid Method: Highest Bidder
Redemption Period: 12 - 18 Months
Sale Date(s): Fall
Statute Section(s): Code of Laws Of SC - Title 12, CH 51
Over-the-Counter: No
State Website: www.sc.gov
Interest Rate: 3%-12%
Bid Method: Highest Bidder
Redemption Period: 12 - 18 Months
Sale Date(s): Fall
Statute Section(s): Code of Laws Of SC - Title 12, CH 51
Over-the-Counter: No
State Website: www.sc.gov
- There are 46 County Delinquent Tax Collectors (often referred to as simply the Tax Collector) or, if there is no such office, refer to the County Treasurer.
- Note: In most Counties, the Treasurer collects only current real property taxes and the County Delinquent Tax Collector (or Tax Collector) collects only delinquent real property taxes and conducts the annual tax sales.
The homeowner has approximately one (1) year from the date the tax lien certificate was purchased to redeem. Depending on when the homeowner redeems he or she will be charged a 3% to 12% penalty. Upon the expiration of the one (1) year redemption the investor may apply for the tax deed.
Tax Sale Type: Tax Lien Certificates. (Sec. 12-51-130).
Contact: Tax Collector. (Sec. 12-51-60).
Interest Rate and/or Penalty Rate: Depending on the month of redemption 3% to 12% penalty (see "Additional Notes"). (Sec. 12-51-90).
Bid Procedure: Premium bid / highest bid. (Sec. 12-51-55).
Redemption Period: One (1) year. (Sec. 12-51-90).
Law: Code of Laws of South Carolina, Title 12, Chapter 51 - "Alternate Procedure for Collection of Property Taxes".
Additional Notes:Penalty due at Redemption: According to (Sec. 12-51-90) 'the defaulting taxpayer, ...may within twelve months from the date of the delinquent tax sale redeem each item of real estate by paying to the person officially charged with the collection of delinquent taxes, assessments, penalties, and costs, together with interest...'
According to (Sec. 12-51-90 (B)) the amount charged to redeem is based on the month during the redemption period that the property is redeemed;
- First three months (3%) percent of the bid amount
- Months four, five, and six (6%) percent of the bid amount
- Months seven, eight, and nine (9%) percent of the bid amount
- Last three months (12%) percent of the bid amount
According to (Sec. 12-51-130) upon 'failure of the defaulting taxpayer,... to redeem realty within the time period allowed for redemption, the person officially charged with the collection of delinquent taxes, within thirty days or as soon after that as possible, shall make a tax title to the purchaser or the purchaser's assignee'.
Wyoming
Sale Type: Tax Lien Certificates
Interest Rate: 15% + 3% Penalty
Bidding Method: Random Selection
Redemption Period: 4 Years
Typical Sale Period: Summer
State Statute(s): Title 39, Ch 13
State Website: http://wyoming.gov
Wyoming Resource: http://www.wyo-wcca.org/
Interest Rate: 15% + 3% Penalty
Bidding Method: Random Selection
Redemption Period: 4 Years
Typical Sale Period: Summer
State Statute(s): Title 39, Ch 13
State Website: http://wyoming.gov
Wyoming Resource: http://www.wyo-wcca.org/
Wyoming State Overview:
The county sheriff prepares a list of tax delinquent properties for that year, and will then conduct the county auction. The purchaser will receive an interest rate of 15% annually, with a 3% penalty added to the original redemption amount for the first year. The sheriff will then send a certified letter to the last recorded address of the owner, and any other financially interested parties. They then have the right to come forth and pay off the taxes insuring you of your initial investment plus interest in return. The county publishes the tax sale list in a local newspaper (different newspapers for each county) three to six weeks prior to the tax lien sales. The property owner has up to the day before the auction to pay the delinquent taxes along with any penalties and fees that have been incurred. If the taxes go unpaid, the county will sell the tax lien certificate at the auction. If the property owner does not pay the next year's taxes and you are the certificate owner, the county will send you a bill offering subsequent taxes to you; this allows you to be the owner of the next years tax lien also. The property owner has up to four years to redeem his or her property with each year accruing 15% interest. If it is not redeemed within the four years time allowed then the tax lien holders takes ownership of the property. This is done by filing for the deed which must be done no later than six years after the purchase of the tax lien. If there are more than one tax lien holder for the same piece of property, then the one filing for the deed must satisfy all other tax lien holders' tax lien certificates. Wyoming has a smaller population than most places which makes it a good place to invest because there tends to be less competition.
Wyoming offers a 15% rate of return on Tax Lien Certificates. Investors are also guaranteed a 3% minimum return on properties that are redeemed within the first year. The primary bidding method used at Wyoming Tax Sales is rotational bidding. Each investor's name is place in a pot; after which all names are randomly chosen. When an investor's name is chosen he or she can purchase the tax lien certificate or pass.
The county sheriff prepares a list of tax delinquent properties for that year, and will then conduct the county auction. The purchaser will receive an interest rate of 15% annually, with a 3% penalty added to the original redemption amount for the first year. The sheriff will then send a certified letter to the last recorded address of the owner, and any other financially interested parties. They then have the right to come forth and pay off the taxes insuring you of your initial investment plus interest in return. The county publishes the tax sale list in a local newspaper (different newspapers for each county) three to six weeks prior to the tax lien sales. The property owner has up to the day before the auction to pay the delinquent taxes along with any penalties and fees that have been incurred. If the taxes go unpaid, the county will sell the tax lien certificate at the auction. If the property owner does not pay the next year's taxes and you are the certificate owner, the county will send you a bill offering subsequent taxes to you; this allows you to be the owner of the next years tax lien also. The property owner has up to four years to redeem his or her property with each year accruing 15% interest. If it is not redeemed within the four years time allowed then the tax lien holders takes ownership of the property. This is done by filing for the deed which must be done no later than six years after the purchase of the tax lien. If there are more than one tax lien holder for the same piece of property, then the one filing for the deed must satisfy all other tax lien holders' tax lien certificates. Wyoming has a smaller population than most places which makes it a good place to invest because there tends to be less competition.
Wyoming offers a 15% rate of return on Tax Lien Certificates. Investors are also guaranteed a 3% minimum return on properties that are redeemed within the first year. The primary bidding method used at Wyoming Tax Sales is rotational bidding. Each investor's name is place in a pot; after which all names are randomly chosen. When an investor's name is chosen he or she can purchase the tax lien certificate or pass.