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Identify 5 counties
Identify 5 counties that you are interested in. You may want to start with your home county and possibly expand your list to counties within other states that interest you. If possible, go to http://www.johnbeckspropertyvault.com/ and login. Once there, click on “Resources” then “Tax Sales”. The map that comes up will help you identify how the states are set up. Try to choose counties from tax deed states if you prefer to get deeds sooner. You may select counties from tax lien certificate states to add variety to your experience if you like. It's Ideal to get lists from counties that have sales coming up and if you click on "Resources" then "Sales Calendar" it will bring up a calendar telling you who has sales coming up. I like to look about 4 to 6 weeks into the future by clicking on the dropdown menu next to the month and scrolling up to future months. Keep in mind that the Property Vault gets it's information from the counties, but the counties have been known to change dates from time to time. Be sure to get with the county to confirm the correct dates.
With each county, you have one main goal: Find out as much as you can about how the auctions are conducted in the county.
In order to do this, you will need to find out the county’s website address and the county’s phone number. Try to get all of the information from the county’s website first and follow up with a phone call if necessary.
You can get a link to the county’s website and its phone number from the following website:
Finding The County Information
http://www.naco.org/ – Go to “About Counties” and click on “Find a County”. Then click on the state you want to find out about. This page will list the counties in alphabetical order. Then click on the county you're interested in looking into. That page will give you the county’s phone number and you can refer to this if you need to call them. If you click on the name of the county again, it will link you directly to the county’s website if they have one.
Once you are on the county’s website, you need to find the correct department, usually the treasurer’s office. If you are not sure which department is correct, call the county and ask, “What department is responsible for collecting the real estate property taxes for the county?” The answer to this question is the correct department.
Get to the correct department on the website and look for information on “Delinquent Tax Lists”, “Tax Sales”, “Tax Deed Sales”, “Tax Certificate Sales”, etc.
Hopefully you will get all of the information you need from the website. If not, call to get the rest of your questions answered.
For each county, the following 13 questions will help you accomplish your goal of finding out as much as possible about how the auctions are conducted. Each question comes with an explanation of why you are asking the question as well as some follow-up questions that you might need to ask.
13 Questions to ask counties about their tax sales:
1. “Which department is in charge of the collection of real property taxes? Could you please transfer me to that department?” Often times this will be the county treasurer, tax collector, trustee, tax commissioner, etc. Although each county might have different names for the departments, they usually have the same responsibilities.
2. “What is the date, time, and location of the next tax auction?” We may already know this from the Property Vault, but sometimes counties change it without notice, so we want to confirm it and get an exact location (address and room number, if applicable). Every county will be quite different. You need to find out about the auction for each separate county.
3. “What do I get if I’m the successful bidder?” Is it a tax lien certificate or a deed to the property? If it is a deed, what type of deed is it?
4. “How often are the auctions held?” This will help us schedule our participation in future auctions. Some counties will hold auctions monthly or more often, others will be just once a year.
5. “Are there any pre-registrations requirements for participating in the auction?” Sometimes counties will make you register weeks in advance of the auction, and other counties charge a deposit or fee in order to participate in their auction. Whatever the requirement, you must find out and comply before participating.
6. “When is the last day and time the owner can redeem the property before it goes to auction?” We refer to this as the “drop dead date” and we want to know because if we want to try to get the property before the auction, we will need to do it with as much time before the drop dead date as possible.
7. “Who conducts the auction?” This could be the sheriff, county clerk, treasurer, or a paid auctioneer. I have found that often times these departments can provide you with valuable information about the auction process in the area, so contact them and ask them additional questions. They might be able to tell you how many people attended the last auction, how many of them were actively bidding, how many properties were available at the auction, what the price range for winning bids was, etc. All of this will help you know what to expect.
8. “How is the bidding conducted?” There are public oral bids, internet bids, mail-in bids, and several other types of bidding. You need to understand the type of bidding in order to see if you will be able to participate in the auction. Also, you will want to know how the starting bid is determined. Is it the amount of taxes and penalties due or is it a percentage of the fair market value, or some other method? Also, if it is a deed auction, will the auction be a bid up of the amount to be paid for the property or a bid down of the percentage of ownership the winner will accept for the bid price, or is some other method used? If it is a lien auction, is the action a bid down of the interest rate the bidder is willing to accept or is some other method used?
9. “Do I have to be present to participate in the auction?” Some counties will require either you or a representative to be present to bid at a live auction. If you plan to send a representative to attend for you, find out what additional requirements you might need to fulfill so that that representative can bid for you.
10. “What liens and encumbrances are extinguished by the auction?” Often times the existing liens and encumbrances on a property are wiped away with the tax sale, but this is not always the case. Find out what liens (i.e. IRS liens, mortgages, mechanic’s liens, etc.) that will stick to the property even after the auction. This may very well affect how much profit you can make so make sure to be aware of it.
11. “How can I obtain a list of properties that will be available at the next auction?” Sometimes the list will be on the county website for immediate download. The county may also be willing to e-mail you the list. Or they may be willing to mail it to you. Some will publish the list of available properties in newspapers. If the list for the next auction is available, go ahead and get it. If the county’s normal method of distribution for the list is not an option for you (it is in another state, etc.), ask for additional options. If necessary, be persistent (cordial, yet firm). One way or another, get the list. Remember that no lists = no profit.
12. “What happens to the properties not sold at the auction?” Generally 3 things that happen with these properties. 1) The county will sell them straight to you (over-the-counter, by internet, or by mail-in-bid), 2) They will have a separate auction for those properties, or 3) They will be placed into the next auction with all of the new properties that become delinquent.
13. “How can I obtain a list of properties left over from previous auctions that are now available?” If there is a list available, get it. That is now one more list of properties that are available for you to purchase RIGHT NOW!!!
Other websites that help us get information on counties and property lists:
1) http://www.netronline.com/ – Click on the “Public Records Online” tab. Click on a state and then choose a county. Click on the desired county and it will give you the offices, phone numbers, and online links to those offices. This site also has some public records lists and is helpful in identifying county contact information and county website URLs.
2) http://www.realmarketing.com/ - it has links to the county assessors throughout the U.S. On the left there are a list of states where they will give you links to county assessors. Also on realmarketing.com if you go to the middle of the page it will have an explanation of realmarketing.com and in the 2nd paragraph there are links to the offices of the county recorder and treasurer.
