The highest bidder for a property at a tax deed sale receives the deed interest held by the taxing authority. Regardless of the sale type, the original owner’s interest in the property is abolished due to the right of taxation. This sale typically follows an auction style process where the taxing authority sets the minimum acceptable bid and the interested investors bid against each other until one is the clear winner.
Upon entering the sale, all bidders will register with the individuals assigned to monitor the sale. Registration may sometimes be limited by a variety of factors.
Example: It is common practice in some States to require that individuals may only bid if they are not currently in arrears on any real estate tax payment to any taxing authority. If this ruling exists at a sale that you attend, you will be asked to sign a statement confirming your status concerning delinquent taxes.
Example: Some States have implemented residency requirements that state that only individuals who are United States citizens or who live within a specific jurisdiction may invest at the sale. If such a ruling exists at a sale that you attend, you will be required to provide proof of your residency status.
Example: Many States require that any individual who plans to invest at tax sale provide proof of their identity and true address prior to placing any bid. If such a requirement exists, you will be asked to show valid identification detailing your name and physical residence during the registration process.
The registration requirements of most sales are not onerous or difficult to meet, however it is important that you understand the requirements set forth for any sale you attend. The ability to bid will be set by Statue or Jurisdictional Decree and you must meet these requirements in order to profit from tax sale.
The processes that occur both before and at tax deed sales are specifically outlined for each area. These dictates often require the taxing authority to make detailed preparations before the sale. All practices as set forth by Statue and designated by Jurisdiction must be carefully followed. The compliance with these guidelines will be the duty of the individuals empowered to conduct the sale. It is enough for your investment strategy that you understand that lengthy and detailed processes have been followed to bring the property to the sale.
Many of the guidelines are in place to ensure that the owner whose interest is being abolished by the tax sale obtains adequate warning regarding the taxing authority’s intent to sell the deed. The notice to the property owner assist in removing any potential objection that the owner may make in the future. If the owner does not receive the proper notices of the intent of the taxing authority to sell the deed to the property, the owner may obtain a reversal of the sale at a court proceeding.
The owner will receive notices that outline the actions that must be taken for the owner to retain their rights in the property. By the time you attend the sale, the owner of record has essentially released his interest in the property through failure to comply with the options outlined in the warnings provided to them from the taxing authority, courts, and other parties.
Sincerely happy bidding;
Freelance Copywriter, Songwriter, Author, & Poet.
Co. Rock Of Ages Entertainment
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