The Most Favorable States for Tax Sale Property Investors

[G.D. Haizlip]

Greetings Tax Sale Investors:

Yesterday, I received the following question:
"Which States have the most favorable laws for Tax Sale Investors?

The answer to this question is a bit complex because laws vary from state to state. In addition, depending your Investment goals, as a Tax Sale Investor, the laws/statutes will pretty much dictate or govern the process. Also, seasoned Investors do typically favor certain states for various reasons. Here's a brief overview of some of the advantages when Investing in certain states:

Here is a link for Licking County, OH which gives a good overview of the statute and includes an upcoming sale: http://www.lcounty.com/treasurer/delinquent_tax_dept.php

In States where there are no redemption periods (States I personally like), as a Tax Sale Buyer/Investor, you can own the property usually free and clear. e.g. Alaska, Arkansas, California, Delaware, Hawaii, and New Mexico, etc.

If you desire, you can also Invest to Make your money/profits by looking for States that will pay favorable amounts of Interest.

Texas is a great State for this because there is only a 6-Month Redemption, and you can earn anywhere from 25%-50% ROI.
Best case, if the property is not redeemed, you get the property.

Also, Here is a Money Maker for You in Texas: Texas Tax-Resales
http://www.co.travis.tx.us/tax_assessor/foreclosure/resales.asp
(Be sure to notice the status of these: Many are "Available" for Immediate Purchase, meaning no-bidding up/competition)

Arizona(16% ROI with 3yr Redemption Period) - Here you can also buy Assignments (Unsold T.S. Certificates) Over-the-Counter/via U.S. Mail.
Goto: http://www.delinquenttaxsales.com
Then, Click-on Assignments

In essence, the states with the most favorable laws really depends on what you as an Investor is more comfortable with as well as how patient you are when it comes to Tax Sale Investing. Patience is really important where the redemption periods are longer. Otherwise, I would suggest states where the redemption period is short and/or where you can purchase property with no-redemption period(s).

I certainly hope that this answers your question. If not, reply and I will reply-back. Or, if you want to know about a particular state other that those aforementioned I will let you know what I think/know.

DelinquentTaxSaleInvestor,
GdH-

[Jim Wineinger]

Kenneth: Some tax deed states do have a redemption period. And not all tax deed sales are the same.

By this I mean that when a tax deed state does have a redemption period, the first time that a property goes through this process it will have that redemption period. If no one bids on it the county which oficially bid on it by giving the opening bid amount bought it and will offer it in another tax deed sale. Since it is now past the redemption period the high bidder may take possession of the property immediately upon recieving the deed.

So there are actually two different kind of tax deed sales even within one state.

As far as a forclosure process being judicial or non judicial. It does not really matter because the tax sale process is started by the county officially petitioning a judge for the right to sell the tax rights to the highest bidder at the sale. This is actually a judicial process that is done. So to say that foreclosures are non-judicial would be incorrect when speakiing of tax sales. It is always a judicial process.