While it might not have been quite as exciting as tax auctions used to be, owners of properties with delinquent property taxes are probably loving the newer, quieter, computerized bidding system that enabled tax lien buyers to quietly punch in bids on their personal keyboards rather than shouting them out and struggling to be heard[1]. The average bid at the Madison County (IL) tax auction was “just under four percent,” reported treasurer Kurt Prenzler, who ran on the promise to use this computerized system in his tax sales moving forward …

In hopes of getting higher bidder participation in its annual tax certificate sale, the city of Anderson in Madison County in Indiana will be hosting a seminar to educate residents in the area about how to purchase tax liens before its next event[1]. Last November, the county hosted a tax sale in an effort to recoup back taxes but failed to move more than 2,000 properties. The April sale will list properties up for grabs for as little as $100, and the county wants bidders and would-be investors to be …

In Des Moines, the local school board faces a potential $6.8 million shortfall in their budget for the coming school year. The sum is staggering enough that even the board’s citizen advisory committee is considering property tax hikes to resolve the problem[1]. While most members hoped to increase district property taxes somewhere between $1 and $2 million, some members want to make up the entire deficit through tax increases. “Whatever is paid by the average citizen in property taxes is very minute compared to all they pay. Property taxes are …

Many people have been writing into the blog asking about how to get started investing in tax liens. One of the first things that you will need to do is to get familiar with your location options for investing. While it would be nice if you could just invest in your own hometown, that may not always be the best option for you. Not every local area has tax lien auctions, and even those that do may not have the right properties for your …

In Illinois, tax lien auctions will now be taped as part of an initiative to “guarantee fairness” at local tax auctions. The bill, proposed by state senator Bill Haine, includes legislation to require that all tax sales be videotaped and that will prevent bidding from culminating in a tie[1]. Illinois auctions have faced scrutiny recently due to practices that allegedly “discouraged free bidding at lower rates.” Lawmakers are concerned that there is no policy in place permitting auctions to be reviewed, and believe that the mandatory tapings could help resolve …

In Arizona, small business owners and homeowners alike are “buying time” on their property taxes by simply opting out of paying, reports Coconino County Treasurer Bonny Lynn[1]. In this Arizona county, the number of tax liens for sale this January is fully double the number just three years ago in 2007 before the worst of the bust hit the state. Lynn believes that this is just another product of the state’s struggling economy, but Dharmesh Vora, president of the Vora Financial Group in Coconino, believes that many businesses and homeowners …

A county in Georgia is considering adding another factor to property tax collection and to the imposition of property tax liens: rain. In Rockdale County, the board of commissioners is awaiting further information on the proposed idea of adding stormwater collection fees to the list of things that can be placed as liens on properties if left unpaid[1]. Currently, the fees are very difficult to collect from property owners, many of whom “deride it as a ‘rain tax’” or simply move away without paying. Currently, the county has no recourse …

Tax lien investors know that the holder of a mortgage on a tax-lien compromised property can be a friend or a foe. If you are hoping to have your lien redeemed, then a mortgage holder is a friend. After all, they would probably rather pay off your tax lien – with interest and penalties of course – to avoid losing their larger investment in the property. On the other hand, if you are hoping to foreclose on the property, a lender holding a large mortgage can be bad news since …

In a transaction that helped Harding, New Jersey recoup almost $52,000 in property taxes and that snagged one savvy buyer a luxurious estate at a 71 percent discount, a New Vernon estate in Harding, New Jersey was sold for $6.4 million online[1]. The estate, called Fawn Hill, sold in November of 2010 at what is known as an “absolute auction,” which basically is an auction with no minimum or reserve. The house goes to whoever bids the most.
This auction is a great example of why both real estate investors and …