Property Tax Auction

Some Interesting Facts About Property Tax Auction

Almost all of us have seen the classified advertisements section of newspapers and online classified advertising providers like Craigslist. They are jam-packed with ads that inform about the high property deals available through property tax auction. In most cases, the degree of greatness of these properties might be debatable, but a property tax auction is an excellent option for anyone interested in making a good investment.

The reason behind the property tax auction is the estate foreclosures of the properties on which a tax lien has been slapped. The positions auction may be organized by the IRS or by a state government. In some cases, even county government can hold the lien sales. Since the IRS keeps an eye on federal tax lien records, it can organize property tax auction almost anywhere in the US. The state and county auction take place in their jurisdiction only.

Interestingly, there is no clearly defined procedure according to which the property tax auction is to proceed. Since the system is not etched in stone, in some cases people have to be present in property tax auction. In other instances, mail-in sales and now even online sales are considered to be acceptable. In most cases, the auction advertisement has information about this aspect. You can contact the organizerÂ’s office for more details.

Another thing that you need to know is the mode of payment that is acceptable. In case the auction is being organized by Internal Revenue Service, cash is the preferred mode of payment. If you are about to bid in a property tax auction, be sure that you have enough green-backs with you. IRS allows you to use cashier’s check and in some cases even a certified bank check. While acceptable, these modes may be frowned upon.

Credit cards are a strict no and so is financing the transaction. An even personal check is not acceptable. This cash-centric approach followed at property tax auction is not a great thing. It is not really; recommended to carry a lot of cash and unless the final bid amount is known, it is impossible to get a cashier’s check. The only way is to take a test of minimum bid and pay the premium in cash. The approach is quirky, yet it works.

Another important thing is that you should not waste your effort to try to get yourself enrolled in property tax auction mailing list. At least the IRS maintains no such file. There may be some privately managed lists but these lists are either too focused on a particular area, or they may not be regularly updated. The best way is to periodically look in newspapers or taxation department websites for any property tax auction that is to be arranged soon.

Author: James Taylor

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