Tax Sales pros and cons

[April Sago]

What are the cons of tax sale auctions? I was told about them in my area and did a little research but it seems to easy. What are some things that I should know before jumping into this?

[Account Closed]

@April Sago

In my area tax sales are notorious for having title issues.  I was talking with a county attorney a couple of weeks ago and he said something like 1 in 3 have an issue.  The reason being the county has too much work to prepare for the sale, so they hire law students to help with all the work load.  Probably the biggest mistake is interested parties, such as mortgagees and lien holders not notified.  In such cases the liens have not been wiped out because due process was not followed.  I would expect uncertain outcomes from said mistakes.  

That being said, you can get great deals on them and many do.  At least from what I have been told in upstate NY and Pa.  

I am not sure of your situation but in some jurisdictions there are 2 types of sales. 

Judicial sales where mortgages and judgment creditor liens are wiped out.  

Upset sales where none of the liens, except the tax lien, are wiped out.  

I would make sure you understand that part of it before bidding.  Two very different things.  Good luck