Tax Lien Question for unpaid taxes

[Wryland Reed]

What is the process for a property getting unpaid taxes sold to public bid in Miami Dade County?

If I found a property that has not paid their taxes for a year or two, what is the exact process for paying the taxes and placing a lien on the property?

I can call the Miami-Dade County tax collector's office and find homes that have not paid their taxes... how long is it before I can pay the taxes and place a lien on the property for that amount? Or what is the length of time I have to wait before it is offered at public auction and can I only wait until that time?

Please respond if you have purchased tax liens or if you have an example from your county or especially Miami-Dade.

[Ned Carey]

@Wryland Reed you do not "pay the taxes" and get a lien on a property. You buy property tax liens at auctions from the county or city. County or city property taxes are an automatic lien against the property. 

The liens are then sold at auctions to investors. I buy lot of tax liens but never in FL. My understanding from reading here on BP is that tax liens are bid down to very low rates of return in FL.  Fl has somewhat of a hybrid system. The tax lien holder cannot foreclose and get the property like in most tax lien states.  In Fl the tax lien holder can force a foreclosure to happen but then the property is sold at second public auction. 

My understanding is that the low interest rates tax liens are bid down to, make no sense for the typical investor. In Fl the best play is to bid for ownership of the properties at the second auction. I suspect in today's competitive market, bargains will be a rare exception rather than the norm. 

[Wayne Brooks]

The tax collector sells Tax Certificates in June of each year for taxes not paid for the preceding year.  But, there is no advantage to buying these, as far as eventually owning the property.  Eventually, one of the Certificate holders will have the property go to a public Tax Deed auction, which is the only way to buy these properties for taxes....but again, the Certificate has no advantage, they’d have to bid against everyone else.

At no time can you “ simply pay the taxes” and get a lien.

The majority of Certificates go for less than 1% annual interest, with a minimum 5% total interest over the life of the Certificate.  Buying “tax liens” in FL have none of the advantages that they do in other states.

The Tax Deed auctions are online, where the mortgage foreclosure auctions are, on the Clerk of court website.

[Wryland Reed]

Originally posted by @Ned Carey:

@Wryland Reed you do not "pay the taxes" and get a lien on a property. You buy property tax liens at auctions from the county or city. County or city property taxes are an automatic lien against the property. 

The liens are then sold at auctions to investors. I buy lot of tax liens but never in FL. My understanding from reading here on BP is that tax liens are bid down to very low rates of return in FL.  Fl has somewhat of a hybrid system. The tax lien holder cannot foreclose and get the property like in most tax lien states.  In Fl the tax lien holder can force a foreclosure to happen but then the property is sold at second public auction. 

My understanding is that the low interest rates tax liens are bid down to, make no sense for the typical investor. In Fl the best play is to bid for ownership of the properties at the second auction. I suspect in today's competitive market, bargains will be a rare exception rather than the norm. 

Hi @Ned Carey, Ok interesting, I will check on that. I do know where to buy them at auction, as well as the foreclosures at auction. There is quite a sizeable down payment requirement to bid at these auctions.

So, would there be a benefit or potential for a legal process for placing a lien after paying a property's taxes that are past due prior to it hitting auction? Why are they public to pay here: https://miamidade.county-taxes...

There are some addresses that owe 10s of thousands from past years searchable on that site.

[Ned Carey]

@Wryland Reed paying someone else' taxes has no benefit. Legally it is simply a gift. You cannot place a lien on someone's property simply because you paid their taxes for them.  You have to buy the lien via a tax collectors auction. 

Re-read @Wayne Brooks post.  He is the FL expert. 

[Wayne Brooks]

Originally posted by @Wryland Reed:

Originally posted by @Ned Carey:

@Wryland Reed you do not "pay the taxes" and get a lien on a property. You buy property tax liens at auctions from the county or city. County or city property taxes are an automatic lien against the property. 

The liens are then sold at auctions to investors. I buy lot of tax liens but never in FL. My understanding from reading here on BP is that tax liens are bid down to very low rates of return in FL.  Fl has somewhat of a hybrid system. The tax lien holder cannot foreclose and get the property like in most tax lien states.  In Fl the tax lien holder can force a foreclosure to happen but then the property is sold at second public auction. 

My understanding is that the low interest rates tax liens are bid down to, make no sense for the typical investor. In Fl the best play is to bid for ownership of the properties at the second auction. I suspect in today's competitive market, bargains will be a rare exception rather than the norm. 

Hi @Ned Carey, Ok interesting, I will check on that. I do know where to buy them at auction, as well as the foreclosures at auction. There is quite a sizeable down payment requirement to bid at these auctions.

So, would there be a benefit or potential for a legal process for placing a lien after paying a property's taxes that are past due prior to it hitting auction? Why are they public to pay here: https://miamidade.county-taxes...

There are some addresses that owe 10s of thousands from past years searchable on that site.

That portal is simply an easy way for the Owner to pay their taxes  

[Beatriz Goudie]

@Wryland Reed you can register on the tax collectors website and bid on the tax liens once a year in June. There are some properties that remain available throughout the year but are not good to bid on because the property has no value (it is underwater, etc.). When you bid on a tax lien you are bidding against other investors and it is an investment for return, not for the property. The investor willing to take the lowest return wins the lien for that year. Once the owner pays their outstanding taxes, you receive your investment plus return. If the property goes to auction and is sold, then you receive your money. The only way to protect your investment is to make sure that the property has value.

[Jerry K.]

@Wryland Reed if your goal is to buy a tax deed property, for Miami-Dade, you can see their online tax foreclosure (tax deed) auction site here https://www.miamidade.realforeclose.com/index.cfm I would urge you to read the material on the website that explains the tax foreclosure process and understand exactly what you will be buying, what you will owe, how it affects other liens on the property, title concerns. Really, you should contact a Florida real estate attorney who deals with many tax foreclosures if you are new to the process. Or volunteer your time to an experienced tax foreclosure investor. You'll have to do their grunt work, but if you want to learn from them, you need to provide them a service in exchange.

Florida does auction tax foreclosures, but there are many investors who have been doing it for years and know the ropes. They all started knowing nothing, and you can too. Just go into it well prepared. There are a lot of legal statutes you should know before jumping in. Things like what are the Florida laws regarding unpaid HOA fees on a tax foreclosed property? What about city liens, or IRS liens? Start by reading the documents on the county auction webpage and dig in further from there.