New York Tax Deeds

New York State Overview

• GIS and mapping data – This state site is a very good resource to find state, county, and other municipal GIS systems.
• The five counties of New York City were incorporated together as boroughs in 1898, as follows:
  • Manhattan, New York County
  • Queens, Queens County
  • Brooklyn, Kings County
  • Bronx, Bronx County
  • Staton Island, Richmond County
• Obtaining county records has been made easier because of “FOIL”, a Freedom of Information Law that requires all of the government agencies to disclose and provide records free of hassle and real cost. This means parcel maps, title history, relevant property data is available through a quick email.
• This Allegany County deed recording page is a great resource for instructions on recording deeds in New York.
• In the state of New York, each deed must be accompanied by a Real Property Transfer Report.

In New York, the tax collector or treasurer will sell tax deeds to the winning bidders at the delinquent property tax sale.

• Tax Sale Type: Tax Deed (Sec. 1166 (1)).
• Contact: Tax Collector. (Sec. 1102).
• Interest Rate and/or Penalty Rate: Not applicable.
• Bid Procedure: Premium bid / highest bid. (Sec. 1102 (3)).
• Redemption Period: Not applicable.
• Law: New York Real Property Tax Law, Chapter 50-a, Article 11, “PROCEDURES FOR ENFORCEMENT OF COLLECTION OF DELINQUENT TAXES”
• New York City’s Tax Lien Certificates Sale: The city of New York holds an annual tax lien sale, the winning bidder will receive a tax lien certificate.

North Carolina Tax Deeds

North Carolina State Overview

100 County Tax Departments/Tax Department Offices/Tax Offices/Tax Collections Offices and Tax Collectors and 267 municipal (City or Town) Tax Collectors.

In North Carolina, the tax collector or treasurer will sell tax deeds to the winning bidders at the delinquent property tax sales.

• Tax Sale Type: Tax Deed (Sec. 105-374 (p)).
• Contact: Tax Collectors (Sec. 105-350).
• Interest Rate and/or Penalty Rate: Not applicable
• Bid Procedure: Premium bid / highest bid. (Sec. 105-374 (m)).
• Redemption Period: Not applicable.
• Law: General Statutes of North Carolina, Chapter 105, Subchapter II, Article 26, “Collection and Foreclosure of Taxes.”
• Upset bids: According to (Sec. 1-339.64) a bidder may ‘increase the bid‘ by increasing the bid by ‘(5%)‘ and ‘with a minimum increase of seven hundred fifty dollars ($750.00).‘. Once the upset bid has been recorded, the clerk of the superior court will release the prior sale.

Ohio Tax Deeds

Ohio State Overview

Ohio is a hybrid state because some counties hold tax lien sales, and many others hold tax deed foreclosure auctions. Counties with a high enough population are ‘allowed’ to sell tax lien certificates, while the remainder of counties are limited to tax deeds. Bulk tax lien certificate auctions in Ohio happen once a year.

Starting bid of tax deed properties will be at least two thirds of the property value. Still a great deal, of course with tax sales we can be picky when we want to, right?

The tax deed foreclosure auctions in Ohio counties are lumped in with the sheriff sales.  It is not uncommon to see sheriff sales happening every week in many of the deed counties of Ohio. Many of these sheriff sales will include at least a few tax foreclosure properties mingled in with all the other mortgage foreclosure properties. Some lists specify which properties belong to which group, some lists don’t.

Look for lien certificate auctions in Franklin County (Columbus), Cuyahoga County (Cleveland), and Hamilton County (Cincinnati).

Ohio is unique in that it offers both tax lien certificates and tax deeds. For tax lien certificates, investors can get yields as high as 18% per annum with a one year right of redemption. Tax Deeds are sold to the bidder with the highest bid.

• Tax Sale Type: Tax Deed Sale (Sec. 5721.19) and Tax Lien Certificates (see notes) (Sec. 5721.31).
• Contact: The County Treasurer. (Sec. 5721.31).
• Interest Rate and/or Penalty Rate: 18% per annum (for tax lien certificates). (Sec. 5721.32 (C)).
• Bid Procedure: Premium bid / highest bid (tax deeds). (Sec. 5721.19). Bid down interest rate (tax lien certificates). (Sec. 5721.32 (C)).
• Redemption Period: One (1) year. (Sec. 5721.37 (A)(1)).
• Law: Ohio Revised Code, Title 57, Chapter 5721, “Delinquent Lands,” and Chapter 5723, “Forfeited Lands.”
• Tax Lien Certificate Sales: According to (Sec. 5721.31) ‘Counties having a population of at least 200,000, may collect delinquent taxes by selling tax lien certificates at public auction‘.

Oklahoma Tax Deeds

Oklahoma State Overview

Oklahoma county treasurer’s and tax collector’s sell tax lien certificates to the winning bidder at the delinquent property tax sale. In addition, Oklahoma sells tax deeds.

• Tax Sale Type: Tax Lien Certificate (68-3111) and Tax Deed (68-3135).
• Contact: The County Treasurer. (Sec. 68-3108 (A)).
• Interest Rate and/or Penalty Rate: 8% per annum. (Sec. 68-3113).
• Bid Procedure: Random selection or ‘impartial drawing’. (Sec. 68-3108 (A)).
• Redemption Period: Two (2) years. (Sec. 68-3117 (b)).
• Law: Title 68, Article 31, “Delinquent Taxes and Collection.”
• Multiple Tax Sales: As far as Oklahoma is concerned, at 8% per annum it doesn’t provide the biggest rate of return. However, it does keep the competition down.

The Oklahoma tax sale process can be a bit confusing. First you should know that Oklahoma has three tax sales; tax sales, resales, and county commissioner’s sales.

The “Tax Sale” is held each year on the first Monday in October (Sec. 68-3107). The winning bidder receives a tax lien certificate which draws interest at 8% per annum subject to a 2 year redemption period.

Any tax lien not sold at the “Tax Sale” is assigned to the county and can be purchased over the counter anytime prior to the expiration of the 2 year redemption period (Sec. 68-3108).

The “Resale” or second buying opportunity includes properties which remain unredeemed for a period of two years from the date of the sale…” (Sec. 68-3125) and occurs the second Monday of June each year. The winning bidder will receive a treasurers or tax deed. Any property not sold at the “Resale” will be struck off to the county.

The “County Commissioners Sale” or third buying opportunity includes properties not sold at either the “tax sale” or the “resale”. At the county commissioner sale “Properties are sold by the treasurer at a price approved by the county commissioners” (Sec. 68-3135).

Oregon Tax Deeds

Oregon State Overview

• Oregon has a strong GIS presence. Click here to go to a state-wide interactive map. If the state interactive map doesn’t have a parcels layer for the county, it will provide a link to the county’s GIS.
• Click here to read the policies governing real property tax foreclosure in Oregon.

In Oregon, the tax collector or treasurer will sell tax deeds to the winning bidders at the delinquent property tax sale. The bidder willing to pay the most wins the bidding contest. Oregon is unique in that state statues have provisions for financing purchasers.

• Tax Sale Type: Tax Deed (Sec. 29-312.270).
• Contact: (Sec. 29-311.005).
• Interest Rate and/or Penalty Rate: Not applicable.
• Bid Procedure: (Sec. 25-275.190).
• Redemption Period: Not applicable.
• Law: Oregon Revised Statutes, Title 25, Chapter 275 – “County Lands”,Title 29, Chapter 311 – “Collection of Property Taxes” and Title 29, Chapter 312 – “Foreclosure of Property Tax Liens”.

Pennsylvania Tax Deeds

Pennsylvania State Overview

Delinquent tax foreclosure properties are typically handled by the Tax Claim Bureau department within each Pennsylvania county. The county will hold two tax sales to try and sell tax delinquent real property. First, at the Upset Sale, then at the Judicial Sale where tax liens are wiped out. If a property goes unsold at both tax sales, it will go onto the ‘Repository’ list and will be available during much of the year for over-the-counter purchase via mail-in offer process. Some counties will also hold a third auction; a repository sale consisting of previously unsold properties.

In Pennsylvania, the tax collector or treasurer will sell tax deeds to the winning bidders at the delinquent property tax sale. The bidder willing to pay the most wins the bidding contest.

• Tax Sale Type: Tax Deed (see notes).
• Contact: County Tax Claim Bureau
• Interest Rate and/or Penalty Rate: Not applicable.
• Bid Procedure: Premium bid / highest bid.
• Redemption Period: Not applicable.
• Law: Pennsylvania “Real Estate Tax Sale Law” Act 542 of 1947, P.L. 1368; 72 P.S. 5860.101

In accordance with the Tax Sale law, the municipal Tax Claim Bureau is able to sell parcels in one of four ways (Article VI. Sale of Property.); (a) Upset Sale (Sec 601 – 609), (b) Judicial Sale (Sec 610 – 612.2), (c) Private Sale (Sec 613 – 615), and (f) Repository for Unsold Property (Sec 625 – 630).

The Upset Sale is scheduled each September and includes those parcels whose taxes, from two years earlier, remain unpaid or other specified conditions exist.

A Private Sale can occur after a property has been exposed but not sold at an Upset Sale. An interested buyer submits a written bid to the Tax Claim Bureau. The Bureau decides whether to accept the bid. If accepted, the bid is advertised in a newspaper. Any one objecting to the sale must petition the court within 45 days to disprove the sale.

A Judicial Sale is held at least once each year and can include only those properties that have been exposed but not sold at an Upset Sale. After advertisement, notice to owners and lien holders, etc., the parcels are presented free and clear of all liens.

A Repository Sale consists of properties that are exposed but not sold at a Judicial Sale. Any bid on a repository property must be approved by all taxing districts where the property is located (i.e. township borough, county, school).

Special sales and redemption provisions apply in Philadelphia, Pittsburgh, and Scranton and in Allegheny County.

Tennessee Redemption Deeds

Tennessee State Overview:

Tennessee is a state that is a little different than most deed states because it is a redeemable deed state. One thing that an investor can do once he has won the Tennessee tax deed is to apply for an immediate writ of possession. If the writ is approved, the tax deed purchaser can collect rent on the property for the first year or until the deed is redeemed. This has been proven to be a very lucrative action. There is a one year redemption period for the State of Tennesee.

This annual 10 percent interest rate is simple interest. The 10 percent interest rate is added to any surplus or overbid along with the full amount of the tax deed price paid by the investor.

The highest bidder is the one that is willing to pay the most for each of the tax deeds. All fees, penalties, and administrative costs are included with the opening bid.

The tax deed buyer can take possession to the tax deed one year after the winning bid.

Utah Tax Deeds

Utah State Overview:

All of the counties in Utah have their tax deed sales on the same day at the same time. Therefore it is a good idea to decide which county you want to work in or have some assistants to help you with more than one sale. Once a deed is purchased from the sale, it takes approximately 30 days for the county to send you the tax deed. All tax deed properties must be paid for at time of purchase. Some counties will allow you enough time to go to your bank if it is within an hour’s time. Only cash, cashier’s check or certified funds are accepted. Once a property has gone through the tax deed sale and did not sell, an investor can contact the county to purchase a property for the opening bid price. The county will sell a property after it has been delinquent for five years. The property owner has up until the auction starts to pay off his or her back taxes, penalties, and fees. The county will also list the tax deed properties in a local newspaper about four weeks prior to the sale. Auctions are conducted at the county courthouse.

Utah is an “Oral Bid,” and all participants must register prior to the sale. This can be done on the day of the sale. The most common method is the Premium Bid. The starting bid will include the back taxes, penalties, interest and any administrative costs. The property will go to the highest bidder. The second type of bidding is is the “Bid Down % of Ownership” method. The opening bid will include the back taxes, penalties, interest, and any administrative costs. The investors will bid down the ownership of the property starting at 100% of the property value. This then becomes a partnership with the previous property owner. The person willing to take the lowest percentage of ownership on that particular tax deed will be the winning bidder. http://www.utahlegalnotices.com/ is a great website to find listings of Utah tax deed properties. However, all of the sales will be announced at least three weeks prior to the sale in the local newspaper and on the county website. All Utah lists can be found on noriskinvestor.com in the Download Center at the start of May. The county Auditor conducts the sale. You can have someone bid in your stead with a notarized statement authorizing that person to bid for you.

Virginia Tax Deeds

Virginia State Overview:

On December 31st of each year, the county treasurer will begin the foreclosure proceedings on any property in which taxes are not paid by the end of two years after the property first becomes delinquent. The county treasurer will then take this list and send out certified letters to the last recorded address of the owner, and any other party that has financial interest in the property, letting them know that their property is delinquent. The county will then publish the delinquent list about three weeks prior to the tax deed sales in the local newspaper. The tax deed will be issued to the highest bidder winning the property at the auction.

Virginia is an oral bid state which uses the Premium Bid method.  The starting minimum bid will begin with the amount owed in back taxes, along with penalties and any administrative cost incurred. Participants will need to register before the auction begins. The payment methods accepted are cash or certified checks. The property deed will be sent in the mail approximately one month after the auction is over.

Washington Tax Deeds

Washington State Overview:

After the counties have held onto tax lien certificates that have been delinquent for three years, they will hold a sale offering the tax deed at auction. The county will publish the list of tax deed properties in the local newspaper approximately three weeks prior to the sale. The property owner has until 5:00 pm the day before the auction to pay his or her back taxes, fees, and any penalties. This is what the starting bid will begin at also including any administrative costs. Some counties in Washington do have tax deed properties that are available after the tax sale. They are called “tax-title” properties and will be found under the real property division. Most of the tax-title properties are land. Washington does provide some funding in some of the counties. It will start at a 9.25% interest rate and can carry a contract for up to ten years for a $50,000 tax deed. Here are a few of the counties that have funding: Coos, Clackamus, and Deschutes. Quit claim deed forms can be found on www.vuwriter.co.

Washington is an oral bid state that uses the “Premium Bid” method. The tax deed will be bid up in price until a high bidder has been established. The starting bid will include all taxes, fees, administrative costs, and any penalties. Each bidder is required to register before the tax deed auction begins. It is possible for one to stand in another’s stead for bidding.Y ou must contact the county and get a notarized statement giving permission for that person to represent you.

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