Tax Lien Auctions | My Friend Bought A house For $90!!!

How To Buy Tax Lien Properties
What Is A Tax Lien
A tax lien is the governments legal claim against your property when you neglect—or fail—to pay a tax debt. For example, if you don’t pay your property taxes that year, the county will place a tax lien against your property unless you pay.
What Is A Tax Lien Auction?
Assuming you continue not paying your property taxes for an extended period of time, the county will eventually place the lien up for auction.
This length of time varies by state/county, but in the county I went to this year you would have to fail to pay your taxes for three years before your lien comes up for auction.
The county doesn’t want to devote anymore time or resources to getting their money back. They bring in other investors, who are willing to pay the county back, with intent of either recouping their money, or being able to possess the home in the future.
The starting bid at these auctions is whatever amount of back taxes are owed on the property, but they don’t always sell for that amount.
Requirements To Buy A Tax Lien Property
This may seem pretty straight forward, but I wanted to touch on it real quickly because I almost didn’t get to bid at the auction this year.
Make sure you look up your counties requirements to bid at the auction, and then register in advance!
Some basic requirements may include:
1. Resident of that state (utility bill may not count)
2. Ability to pay for the tax lien in full that day
3. Do not currently owe the state any back taxes yourself
The reason this almost screwed me is because I haven’t moved my residency to the state of Missouri yet. Until I’m off active duty, I planned to keep my home of record license/residency. While there is nothing wrong with this, I found out 75 minutes before the auction that I could not register to bid on any properties.
Luckily, they would allow me to have somebody stand next to me and bid on my behalf. I would still be able to pay the tax lien, and have my name placed on the tax lien certificate.
I literally called my executive assistant, and said “Can you make it to X county within 35 minutes?”
Then I paid for her gas, and she stood next to me and bid on properties while I nudged, and through out prices, hahaha.
*Side note, where there’s a will, there’s a way. Too many people would have just accepted defeat and left without bidding.
How Do I Buy Tax Lien Properties?
Once the auction ends, you pay whatever amount you bid in full, and viola, you will receive your tax lien certificate!
I highly recommend that you call the county tax collector’s office before the auction and confirm how they’ll accept payment for the liens. Most counties will accept cash or check, but the one I went to this year even accepted credit cards!

#taxliens #auction #taxauction
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My name is David Pere, I am an active duty Marine, and have realized that service members and the working class use the phrase "I don't get paid enough" entirely too often. The reality is that most often our financial situation is self-inflicted. After having success with real estate investing, I started From Military to Millionaire to teach personal finance and real estate investing to service members and the working class. As a result, I have helped many of my readers increase their savings gap, and increase their chances of achieving financial freedom!
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