In many aspects, tax deed auction and tax lien sales are quite similar but they are not totally the same. It is important to note that when you plan to buy tax lien property and bid on it, there are what we call “redemption period” or the allotted time for the homeowner to pay his dues. If the homeowner fails to pay his back taxes and redeem his property, you can foreclose it and take ownership. However, if he is able to pay, you would receive profits in the form of fees and interests. In contrast to tax liens, winning at a tax deed auction as the bidder, grants you legal and full ownership of the property when you’re going to pay the county right away. As a result, the previous property owner loses the opportunity to take back his real estate. Remember though for any of the two, the sale or auction varies for each county and state.
Tax deeds are a worthwhile investment most especially if you have done your part on extensive research about it. Unlike tax liens, you no longer need to wait very long in this type of investment. The real estate market today is filled with properties either residential or commercial, which are waiting for you to buy and sell them. Just remember to always bid wisely. Moreover, conduct the required background checking of the properties. Also, check your county’s website because there are tax deed sales online today which makes it easier for you to participate in an upcoming sale.
