TexasTaxLienSales.com
    Facebook Twitter Instagram
    Trending
    • Zillow – One of your Best Resources for Assessing Property Values!
    • Who Should Buy at Tax Sales?
    • Fundamentals of the Texas Property Tax Code – A guide to understanding the process
    • Tax Sale Resale Property – What Laws Apply?
    • Texas Tax Sale List – County by County
    • Tax Lien Sales – Know the Differences State to State!
    • Securing Tax Lien Property – Taking Possession!
    • Tax Foreclosure Property – How to choose which one to purchase using Real Estate Comparables and Property Records
    Facebook Twitter Instagram
    TexasTaxLienSales.com
    • Texas Counties
      • Brazoria
      • Corpus Christi
      • Galveston
      • Harris
      • Montgomery
    • Bank REO
      • Fannie Mae Foreclosures
      • Freddie Mac Foreclosures
      • Bank Websites
    TexasTaxLienSales.com
    Home»General Information»Tax Lien Sales – Know the Differences State to State!
    General Information

    Tax Lien Sales – Know the Differences State to State!

    James MurphyBy James MurphyJuly 16, 2016Updated:February 26, 2018No Comments4 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Tax Lien sales differ from state to state DRASTICALLY!

    A state like Texas sells Tax Deeds where the buyer purchases and receives the actual property, but other Tax Lien Sales are actually selling the “liens” and not the properties. In these states, a purchaser will not be the owner of the property, but is actually buying the rights to receive the proceeds from the “debt” that the homeowner owes.

    If the homeowner does not pay this debt in a specified amount of time, the buyer has the right to foreclose on the property and eventually acquire said property if the owner cannot pay off the debt, but this is not always a foregone conclusion!

    The type of sale (Tax Deed, Redeemable Tax Deed or Tax Lien) is not the only difference from state to state. Redemption periods also differ. They differ both in length and in the penalties paid to the tax sale purchaser if the properties are redeemed. These penalties vary GREATLY and make some states much more attractive for tax sales than other states!

    Research the details of the state in which you wish to purchase at a tax sale prior to making a bid!

    General Tax Lien Sale Questions:

    Can a person buy at a tax sale if they do not live in the state in which it is held?

    Yes, there is no law preventing you from purchasing at any tax sale. However, you need to consider the cost of research, travel to see properties and travel to upkeep properties in other states. All these will decrease your overall profits.

    Which states have the best terms for the purchasers at a tax lien sale or a tax deed sale?

    TAX DEED – In 2017, generally, Texas is considered the best state for purchases at a Tax Deed Sale. The deeds are redeemable at a 25% – 50% penalty (depending on when they are redeemed). Georgia is also a good choice as their deeds are redeemable at a 20% penalty (or more depending on when they are redeemed). However, both these circumstances are assuming they are actually redeemed, which may not be the case, so you need to make certain you wish to own the actual property!

    TAX LIEN – In 2017, Iowa had the highest return on a tax lien certificate (24%) followed closely by Florida, Connecticut, Illinois, and Wyoming (18%). Again, to invest in these, you need to do your homework. Personally, I know about Texas and Redeemable Tax Deed purchasing – not Tax Liens – so if you want to invest in these, DO YOUR RESEARCH!

    Where do I go to get information about other states tax lien and tax deed laws?

    Because I am not an expert regarding other states, I cannot and will not endorse any one website, book or program teaching about another state unless I have personal experience with it, but I will be happy to post information that, at first appearance, looks thorough and well thought out. However, always check the credentials of an advisory before acting on that advice, and when necessary, check with a specialized Property Tax Attorney.

    STATE – Types of  Tax Lien Sales and Websites

    TAX LIEN CERTIFICATE STATES:

    Alabama
    Arizona
    Colorado
    Connecticut
    Florida
    Illinois
    Indiana
    Iowa
    Kentucky
    Louisiana
    Maryland
    Mississippi
    Missouri
    Montana
    Nebraska
    Nevada
    New Jersey
    New York
    Oklahoma
    Ohio
    Rhode Island
    South Carolina
    South Dakota
    Vermont
    District of Columbia
    West Virginia
    Wyoming

    TAX DEED STATES:

    Alaska
    Arkansas
    California
    Connecticut
    Delaware
    Georgia
    Hawaii
    Idaho
    Kansas
    Maine
    Massachusetts
    Michigan
    Minnesota
    Nevada
    New Hampshire
    New Mexico
    New York
    North Carolina
    North Dakota
    Ohio
    Oregon
    Pennsylvania
    Tennessee
    Texas
    Utah
    Virginia
    Washington
    Wisconsin

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    James Murphy

    Related Posts

    The Sheriff Sale Process – Getting the basic information you need to get started at Tax Foreclosure Sales!

    July 16, 2016

    Sheriff Sale Resources

    July 16, 2016

    Short Sale – What Is It and How Can I Do It?

    July 16, 2016

    Comments are closed.

    Facebook Twitter Instagram Pinterest
    © 2023 ThemeSphere. Designed by ThemeSphere.

    Type above and press Enter to search. Press Esc to cancel.