Online Tax Lien Auctions and Investing Remotely

Online tax lien auctions are a fantastic way to participate in the creation of tax lien certificates. When investing in tax liens, it’s important to know how to acquire your liens.  Many options exist to give investors access to these certificates. 

Getting Started with Online Auctions

Every state has specific rules governing the mechanism by which tax liens are created.  To participate, one must first know the county you want to bid in.  Once you have selected your county, simply login to the tax collector website and look for “Online Auctions.”

Inside the auction home page, investors can register to participate in the auction by following the steps outlined.  This usually requires registration for a county bidder number.  The bidder number registration requires tax lien investors to fill out an application with basic personal, banking and financial information.  After the application process is complete you are free to bid at any online auction in the county.  Auctions dates vary, so check the local listings on the website.   

online tax lien auctions

Online Tax Lien Auctions in Florida

Florida is a state that is worth looking at for the online tax lien sales. The interest rate in Florida is 18% per year.  Some counties in Florida do have online tax lien sales.  However, online auctions are held once a year in May and the interest rate is bid down quite low, but there is a minimum 5% penalty, so regardless of how low you bid if the lien redeems you will get at least 5% on your money.  

Another plus for investors who do not live in the state is that if you do your due diligence and bid on good properties, you are not likely to get the property.  Instead of foreclosing on the property if the lien doesn’t redeem, you apply for the lien to go to a deed sale using the Tax Deed Application process The property will then be auctioned off in a tax deed sale (some of these are online as well) to satisfy the lien and gain back all interest and fees owed to the investor. 

Investors who participate in these online auctions are required to bid against other investors in the bid down process.  The opening bid will begin at the total tax bill for the previous year with an 18% interest rate attached.  As bidding proceeds, the bids will decrease the interest rate by .25% increments and low bid wins.  Winners of the bid will receive an online tax lien certificate that holds the associated interest rate for a life of 7 years.   

Online Auctions Make It Easy to Invest Remotely

Participating in online auctions makes it easy to invest in tax liens remotely. The reason why we recommend our students to invest in Florida is due to the high-interest rates and investor-friendly tax laws. Even if you don’t live in Florida, online auctions provide an efficient and easy way for you to get access to liens and deeds.

North Dakota Tax Deeds

June 4th, 2020|Comments Off on North Dakota Tax Deeds

North Dakota Tax Deeds  Sale Type:  -  Interest Rate:  -  Bid Method:  -  Redemption Period:  -  Sale Date(s):  -  State Statute(s):  -  Over-the-Counter:  -  State Website:  - North Dakota State Overview  [...]