BUYING TAX CERTIFICATES AT THE AUCTION |
When you buy tax certificates at the public auction, you are out to get high interest
without risk and normally without having to ever touch the uinderlying real
estate. It's a great passive investment, but there are a few things you must
know before bidding. 1) Is there a minimum bid? In many cases, there will be a minimum starting bid and nothing lower will be accepted. 2) What is the increment for over-bidding the minimum bid? In most cases, over-bids will only be accpted in fixed incremenets ($50, $100, $1,000, etc.) 3) What is the bidding procedure? In some cases, you bid up the amount you are willing to pay for a tax certificate. In other cases, the price of the tax certificate remains fixed and you bid down the minimum amount of interest you will accept in exchange for that price. The person who agrees to accept the lowest amount of interest is declared the winner 4) What happens if the tax certificate is not paid off at the end of one year? In some states, the Right of Redemption lasts only one year. After that the holder of the tax certificate may foreclose on the property. In other states, the Right of Redemption lasts more than one year and each year a new tax certificate is issued until the Redemption Period expires TAX SALE RICHES HOME PAGE |