Specific Tax Deed Questions for GA Investor

[Roberto Verdaguer]

Hello there, 

My name is Rob and I am new to BP.  I joined because I have been lurking on here for a bit and learning as much as I possibly can about Tax Lien and Tax Deed investing. I am most likely going to pull the trigger this upcoming month at the next Tax Deed Auction but I am trying to find the answers to these particular questions before doing so. A few of the questions I have are answered generally (with other states) in these forums but if anyone who is knowledgable about how Tax Deeds work in Georgia specifically could answer some of these, I would be extremely grateful.

These are the things I would like to know before I start investing...

1) Is the entire amount bid (winning bid amount) subject to the 20% penalty (amount applied in Georgia for the first 12 months) or just the initial taxes owed? (Just to confirm that what I have read is 100% correct.)

2) Who receives the premium which is bid above the tax debt? If the tax deed is redeemed and the property owner pays the full amount owed plus the 20%, who receives the funds above the premium that were payed at auction? Does the property owner get reimbursed this part of the debt once his obligations are met or does the county stay with the funds? 

For example.... 

Taxes owed $3,0000

Winning Bid $10,000

Total price to redeem (assuming the 20% penalty applies to total) $12,000

Who receives the $7k difference between the $3k that were owed and the $10k that were paid? I am correct in assuming that the person redeeming will be paying $12k or are they just paying the $3k they owed plus the $2k in penalties and the county is returning my $7k premium that I bid over the amount owed? (Sorry ahead of time... I know it's a hell of a long and ridiculously complicated question but I need to know how this all works if I plan on investing.)

3) Can you legally contact the owner of the property to collect the money owed and agree on a lower price than the 20% in hopes to redeem the tax deed sooner?

4) Can you legally contact the owner of the property before purchase in order to determine if they are even interested in redeeming the taxes or if they are more likely to let the lien take the property into foreclosure?

5) Where can I search the title of the property along with any penalties or fines associated with acquiring the property after a foreclosure has taken place?

6) How much is owed above the winning bid once a tax deed is purchased (recording fees and such)?

7) In the case of having to foreclose after the 1 year redemption period has expired, would the owner of the property be responsible for foreclosure fees and sheriff fees (eviction) in the case he decides to redeem the property right before the foreclosure is finalized? Are the fees associated with foreclosure proceedings also subject to the 10% + 20% penalty which is applied after the first year? Are the subsequent year's taxes payed during the year waiting for redemption also subject to the 20% penalty and the 10% after the first year?

8) Where do I find information pertaining to the owner of the property filing for bankruptcy (which would nullify the sale)before the auction and after he was notified of the tax lien?

9) How do I verify that all associated parties were correctly contacted by the county and that the tax deed auction on a particular property will likely not be voided?

10) How can I verify the auction listing to make sure the sale does not contain any errors which may be disputed in court?

11) How can I find out if there is a mortgage on said property and how much is still owed to the lender?

12) What liens or penalties on the property are not erased after foreclosure through a tax deed and where can I find information on any of these type of (hoa, irs, ect.)liens, penalties or fines on a property?

Thank you for reading this even if you don't have any of the above answers I hope this thread could help clarify the more specific questions that other investors in my same position are in. I am sure that there are other lurkers out there that haven't joined the forum yet and I hope this helps out everyone that might share some of the same questions I have. 

Rob