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. LetÂ's discuss this further.

On the purchase of the right to collect the past taxes that were due, the buyer is actually giving a sort of loan to the owner of the property so that he is able to pay off his taxes. During the tax deed sales, the winning bidder purchases the land and the deed from the county performing the sale. Once this is done, he owns it.

The tax lien sale is an open auction or a public sale of the right to collect on a debt of the delinquent taxpayer. 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 sort of relief in return for this. The terms of the sale are different for each county. According the terms of the sale, if the debt along with the interest is not repaid within a specific period of time, 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 basically 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 obtains all rights to the property clear 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 federal tax lien record should also be discussed with the legal attorney.

Both the delinquent tax sales are quite different from each other, therefore, it becomes important for you to know which type of sales youÂ'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.

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