Tax Deeds Augusta, GA- anyone know how often they are redeemed?

Question

I'm planning to attend the tax deed auction next month. My bidding plans will be different depending on whether I guess that the deed will be redeemed or I'll end up with the property. (Please notice, I do say guess. I'm not expecting 100% accuracy)
Does anyone have any statistics on how often these deeds are redeemed? Either for Georgia overall or Augusta in particular?

Kiet N. · Answer

There is no guarantee and can't control which way the fall out will be. In my experience:

* The property is in run down, boarded up, abandon, etc... condition - Redemption chance is low.

* Property still have mortgage AND the bid is high enough, the bank will go after the overbid and forego the redemption.

* Occupied property has better chance for redemption.

Tax sale buyer should consider both exit strategies for either case.

Note: you can set the max bid for one particular property, but the auction crowd will determine the final price

Chris Majors · Answer

Hey @Amanda Gust

They start the bidding at the amount of back taxes owed.  The winning bidder then receives a tax lien on the property.  The owner has 12 months to pay back the amount the bidder paid *plus* 15% interest.  If the 12 months expires the holder of the tax lien can legally foreclose on the property.

In my experience, in order to be able to purchase title insurance you have to go through a "quiet title action," which costs ~$2k in atty fees/court costs.  Many tax lien investors on the lower end stuff do not.  I have purchased one deal this way.

I would definitely do at least a drive by on the ones you bid on, because the stuff that actually makes it to the auction is junk and may not be worth the back taxes.  Usually the good ones get paid just before the auction.

I would say you are likely to redeem if it's a junker property that is condemned/borderline condemned dwelling and likely not to redeem if it's a decent property.

Good luck!! I may come to the auction this month as well.

Amanda G. · Answer

Thanks @Kiet N., I asked you the same question in the other thread. I'll run my numbers as though they are likely to redeem.