Tax lien auctions are held every year in different states across the U.S. States that choose the random selection method of selling tax delinquent properties, conduct either by having a computer choose the winning investor. A lottery is also another way of selecting the investor.
The law specifies that the winner of the sale is the first buyer. However, random selection of winners offers equal opportunity to all investors that would participate the sale. This is the reason why there are investors who choose to go with the random selection of winners in tax lien auctions.
