The COVID 19 virus has had a lot of terrible consequences. One of the most notable is that many property tax auctions have moved online for the first time. This change should be seen as both good and bad news. On one hand, it is great to see counties modernizing their process in order to keep up with technology and make life easier for people who are unable to attend auction sales because they work or live too far away from the county seat. On the other hand, this will likely mean more competition among investors which could lead to higher prices on properties at these auctions.
Traditionally, online property tax auctions were limited to those who attended the live event in person or took out an online subscription which required bidding fees to be paid upfront for the entire year. COVID 19 has changed all of this by making it possible for anyone with an internet connection to participate in online property taxes at no cost whatsoever.
Now, buyers can bid online for property that has been seized by the government and sold at public auction. This is a new way of investing in real estate, which can be both lucrative and safe as long as you follow our tips!
The tax lien auction process is fairly simple. The tax collector sells the property for tax delinquent owners through public auctions, often online. As a tax lien investor in this type of transaction, you have to do your due diligence before investing and attend the tax foreclosure auction if it is required by rules. Buying at these auctions is not without risk and there are many things you should know about them before making an investment.
Property Type and Size
Property may sell for less than market value at a tax foreclosure auction. County tax collectors offer the property for sale through a public auction when the owners fail to pay the property tax for a period of time. When an auction is scheduled, the county prepares a tax lien sales list with information about each property. Counties upload sales lists on websites and sometimes print handouts. The auction rules may require the investor to attend these events in person so it is important that you do your due diligence before attending any auctions in order to ensure that you are prepared and know what you are doing!
Tax auctions can be a great way for investors to make money. Tax sales are held in many counties throughout the United States every year and offer buyers an opportunity to purchase properties at low prices. The tax sale price is usually much lower than the market value because property owners failed to pay their taxes, which leads them into foreclosure proceedings. The delinquent owner may end up forfeiting ownership rights if they fail to redeem or bid on their property before it's sold off.
We all know that tax lien investing can be a great way to make money. But it's not always a walk in the park, as tax foreclosure auctions have their own set of challenges.
