Post Tax Sale Lien/Note Investing

[Peter Korty]

Hi BP Community,

There is a SFR down the street from me that was recently sold in our local county tax lien sale. Has anyone ever tried to purchase the lien/note from the person that was the winning bidder in a tax lien sale before? The way that our county works is that after someone hasn't paid their property taxes for 1.5 years, it is sold at auction to the highest bidder, with the starting bid being the amount of taxes owed. After the auction, the winning bidder pays the property taxes and places a lien on the property for the remaining amount. The property owner has some time to redeem the property by paying back the property taxes and the interest on the lien. If they don't, the winning bidder has the right to foreclose on the property.

I know who the winning bidder is and how much they paid since that's public information, but I don't know how to even begin to approach them about me possibly purchasing their lien from them if that makes any sense. Any advice?

Thanks for the help!

[Bruce Lynn]

You have to check your state laws about this.  Some are very easy and some might be more difficult.

I have not done it, but I have had a couple of people approach me immediately after the auction where I bought property and offered to pay more more for it.  I have been tempted, but have not done it.  Not sure if they were scared to bid, or just did not want to bid it up, or why they waited.

I may do it in the future....just to make some fast money.

I would go to the organizers of the sale first....that might be a law firm or it could be the county tax assessor or collector.   Ask them about lien transfers.