You have purchased a couple of tax liens and/or tax deeds and now want to expand into other areas by investing online. Or maybe you haven’t even started investing yet, but want to invest in a lien state and live in a tax deed state, or vice versa. Or maybe you don’t live in the US, but want to invest in US tax liens or tax deeds. She’s heard that you can buy tax liens or tax deeds online and thinks that sounds like the way to go.
But are you ready to buy tax liens or tax deeds online?
Here’s what you need to know about buying tax liens and tax deeds online before you get started:
1. Only a few states offer tax sales online, though the list is constantly expanding as more counties find it easier to sell their tax sale properties online. As of this writing, there are 8 states that have counties or municipalities that have tax lien sales online, and 6 states with counties that have tax lien sales online. The number of states that have online lien or tax deed sales has doubled in recent years, and each year there are new counties holding online auctions.
2. Once a county moves to online sales, offers become more competitive, so be prepared for competition. Also, most online tax sales require a large deposit before you can bid. Typically, the deposit must be made a few days before the tax sale begins, so online tax sales are not tax sales that you can post a day or two before the sale. You must register and receive your deposit in advance. Sometimes you need to be registered and have your deposit weeks in advance, and sometimes you just need to be registered and have your deposit before the bidding closes.
3. Although most online auctions require you to register only once for the tax sale, some online sales require you to register with the tax collector or county treasurer and with the online auction site.
4. You must have a US bank account in order to participate in any online tax sales. For some tax sales, you’ll also need proof of your age (your driver’s license or birth certificate will suffice), and for tax lien sales, you’ll need to provide a W-9 form with a US tax ID number. USA
5. All online tax sales take place only once a year.
6. You will need to perform due diligence on tax sale properties, more due diligence is needed for tax deeds than tax liens. For tax liens, at a minimum you will need to obtain the property’s tax assessment information, find the property’s market price, drive by the property and view it (or have someone else look at the property for you). If you are investing from another state or country and cannot physically look at the property, you can look at a satellite photo or aerial map of the property, but it is better to find someone who can actually look at the property and take pictures of it. for you.
7. If you bid on a property by mistake and you are the winner of the bid, you keep it. There are no refunds. And if you don’t pay for your winning bids, you’ll lose the lien, your deposit money, and be barred from future tax sales in that county.
Now that you have a good understanding of what is involved in buying tax liens online, you will be more prepared to successfully bid on tax sales online. However, this is not all you need to know, but it is a guide to help you get started. You will learn more as you make the investment. Just remember to read all the terms and conditions of the sale and do your due diligence on tax sale properties before you bid.