Delinquent Tax Sales: An Overview
As a means to generate the lost and the unpaid income from the delinquent taxpayers, the county government offers delinquent tax sales at auction to most people. Delinquent tax sales are of two types, namely the tax lien sale and the tax deed sale. Let’s discuss this further.
On the purchase of the right to collect the past taxes that were due, the buyer is giving a sort of loan to the owner of the property so that he can pay off his taxes. During the tax deed sales, the winning bidder purchases the land and the deed from the county performing the transaction. Once this is done, he owns it.
This sale is usually held once each year by the county. On behalf of the delinquent property owner, the delinquent taxes are paid by the winning bidder to the county. The purchaser is given some relief in return for this. The terms of the sale are different for each county. According to the terms of the deal, if the debt along with interest is not repaid within a specific period, the tax lien purchaser can foreclose on the property. All the other subordinate liens are either dissolved or forgiven. They no longer remain a responsibility of the purchaser.
A tax deed sale is a public sale but not of the taxes rather the property of the delinquent taxpayer. Here the winning bidder obtains the right to purchase the deed to a piece of property and becomes the new owner. Thus, the bidder acquires all rights to the park bright and free of deeds of trust, mortgages, liens, etc. The lien holder and the property holder are notified earlier that the property will have to be auctioned if the taxes are not paid.
You should consult the county for getting the details of the sale and the property if you want to participate in a tax lien sale. For participating in a tax deed sale and further information on it, consult a legal attorney, get familiar with the law on the property tax loans or contact the government agency that is responsible for the conduct of the sale. Other aspects such as federal tax lien and central tax lien record should also be discussed with the legal attorney.
Both the delinquent tax sales are entirely different from each other. Therefore, it becomes essential for you to know which type of deals you’ve been attending, a tax deed sale or a tax lien sale. Each one has its own set of has specific guidelines and rules. So with these facts, go ahead with confidence.