Tax Lien Certificates Bidding Methods

By dhinternational  /  October 30, 2012 / Comments Off on Tax Lien Certificates Bidding Methods

Tax Lien Certificates Bidding MethodsBidding for tax lien certificates is the first procedure in acquiring affordable properties. If you want to get a property, then knowing how the bidding process works is very important in order to succeed. The auction for tax lien certificates is quite different from the regular tax sale. It is because you are going to bid for the property’s delinquent taxes owed by the homeowner. To help you understand the bidding process, here are some methods to learn about.

Premium Bidding
The bidder who bids the highest over the total lien amount owed is the winner of the auction. You must take note that majority of states only allow the interest to be charged to the overall amount of the lien owed. This type of method is also known as straight bidding.

Random Selection
This method is preferred by many tax lien certificate investors because the bidders get an opportunity to access the properties prior to the sale, which are up for grabs. During the auction, each bidder is given a certain number, and then a draw would be created for every property. When a bidder’s number is called by the officials, he would make a decision to either accept or decline the property offered. Still, the price of the starting bid is equivalent to the delinquent taxes owed.

Over the Counter Sale
Information regarding tax lien certificates which are available over the counter can be acquired at the local tax collector’s office. Most counties in the US allow direct selling of certificates to interested investors. It must be noted however, that investors who are interested to do this method must do due diligence first. This may be the easiest way to purchase tax lien properties but still, research is mandatory in order to check first the condition of the properties.

Be Sociable, Share!

Enter Below Now For FREE Instant Access To Your Kick Butt Tax Lien System

We respect your privacy. Your information is never shared or sold, we hate spam too.

This Tax Lien Training System Will Teach You
  • Exactly How To Start Buying Tax Liens Today
  • Tips For Tax Lien Auction Success
  • How To Avoid The Mistakes New Tax Lien Investors Make

Limited Time Only