Louisiana Redemption Deeds

Sale Type:	Redemption Tax Deeds
Interest Rate:	12 % + 5% Penalty
Bid Method:	Bid Down Interest
Redemption Period:	3 Years
Sale Date(s):	January – April
State Statute(s):	Article VII, Sec. 25
Over-the-Counter:	No
State Website:	http://www.louisiana.gov/

Louisiana State Overview

Louisiana is classified as a Redemption Deed State. The municipal or parish tax collector oversees the sale which is an oral public auction. Tax deeds are sold with a 3 year right of redemption. Investors receive a rate of return of 1% per month, or 12% annually. Investors also receive a penalty rate of 5% upon redemption, making the annual rate a return of 17%. If the property owner does not pay all delinquent taxes, interest, penalties, and fees by the end of the 36 month period, the right to redeem the property will be forfeited.

Tax deeds are awarded to the investor who bids down to the lowest percentage of ownership in the property. Louisiana”s State statutes are based on a French law called the Napoleonic Code instead of the English common law used in almost every other state. Because of this difference, it can make the statutes difficult to understand and often confusing.

There is a 12% annual rate of return or a 1% per month return in Louisiana. The state also mandates a flat penalty rate of 5% due to the deed holder upon property redemption. The overall rate of return an investor receives is determined by the redemption date. A property redeemed after 1 month would yield an interest rate of 72% (1% + 5% penalty X 12 months), while a property that redeemed after 35 months would yield a return of 13.7%.

Louisiana uses a bid down ownership method. Investors compete by bidding down how much property ownership backs the redemption deed or tax lien. Using this system requires a lien holder to file a court action to prosecute the foreclosure in order to sell the property. The proceeds would then be divided based on the percentage of the ownership held.

• Tax Sale Type: Hybrid Tax Deed (Sec. 47:2183).
• Contact: (Sec. 47:2182).
• Interest Rate and/or Penalty Rate: 12% per annum plus 5% penalty. (Sec 47:2224.).
• Bid Procedure: Premium bid / highest bid.(Sec. 47:2183).
• Redemption Period: Three (3) years. (Sec. 47:2183 (a)).
• Law: Louisiana Constitution, Title 47, Subtitle III, Chapter 5, “Tax Sales and Redemptions.”
• Record the Tax Deed. According to (Sec. 47:2183 (A)) the purchaser must file the deed ‘for record in the conveyance office in the parish in which the property is situated.‘ to begin the countdown of home owners three (3) year right to redeem.
• Obtaining a writ of possession. Louisiana is unique in that the purchaser of the hybrid tax deed can request immediate possession of the property before the expiration of the home owners three (3) year right to redeem has expired.

Georgia Redemption Deeds

Sale Type:	Hybrid Tax Deeds
Interest Rate:	20% Penalty for 1st year and 1% per month thereafter
Bid Method:	Premium Bid
Redemption Period:	1 Year
Sale Date(s):	Varies by County
Statute Section(s):	Title 48 Chapter 3,4
Over-the-Counter:	No
State Website:	http://www.georgia.gov/

Georgia State Overview

In Georgia, tax sales are very similar to those in a tax lien state. The county tax commissioner oversees the sale which is an oral public auction. Tax deeds that are sold in Georgia are purchased with a one year redemption period. A penalty rate of 20% is applied to the redemption of all tax deeds. The property owner has a twelve month period to pay all delinquent taxes, interest, penalties and fees if they choose to redeem the property, if failed to do so, the investor may begin the process of terminating redemption rights. This process is required to be performed by the investor. Following the redemption period the investor is required to send out certified letters to the last recorded address of the owner and any other party with interest in the property. Upon foreclosure the investor is required to run a foreclosure notification in the local newspaper for 4 consecutive weeks prior to the redemption deadline.

Georgia has a 20% penalty rate that is applied for the first year. An additional 20% penalty is applied to the property that is redeemed within 4 weeks following the one year redemption period. There also is a 20% penalty attached if the redemption is made after a public notice has been given. Investors can receive a possible return rate of 60% with the right circumstances upon redemption.

Georgia uses the Premium Bid method. The county’s starting bid will include all back taxes, penalties, interest, and administrative costs. The investor who bids the highest amount will receive the deed to the property.

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

• Tax Sale Type: Hybrid Tax Deed (Sec. 48-4-1).
• Contact: Tax collector or tax commissioner (Sec. 48-4-3).
• Interest Rate and/or Penalty Rate: 20% penalty of the amount for the first year or fraction of a year and 10% penalty for each year or fraction of a year thereafter(Sec. 48-4-42)
• Bid Procedure: Premium bid (Sec. 48-4-2 ).
• Redemption Period: One year (Sec. 48-4-40).
• Law: Official Code of Georgia, Title 48, Chapter 3, “Tax Executions,” and Chapter 4, “Tax Sales.”

NOTE: According to (Sec. 48-4-45) once the 12 month redemption has expired, the investor must take immediate action to terminate the owners right to redeem.

Alabama Tax Liens

Sale Type:	Tax Lien Certificates
Interest Rate:	12% APR
Bid Method:	Premium Bid
Redemption Period:	3 Years
Sale Date(s):	May
State Statute(s):	Sections 40-10-1 through 40-10-198, Articles 1-7
Over-the-Counter:	Yes
State Website:	http://www.alabama.gov/

Alabama State Overview

Alabama is a tax lien certificate state, but also offers tax deed properties in select counties. Tax sales are usually conducted in or in front of the county courthouse building or may be held in any other county owned building. Investors are required to register prior to the auction, although most counties will allow you to register the day of the auction. Upon registration investors will be given a bidder number which will be used during the tax lien auction.

Tax liens are purchased with a 3 year redemption period and a 12 percent annual rate of return or 1 percent per month. Some counties pay interest on both the minimum and premium bid amounts. The majority of the counties use a premium bidding system when auctioning the tax liens.

Alabama uses the premium bidding method at the tax sale.  Bidders compete by the amount they are willing to pay above the minimum bid. The total of the delinquent taxes, interest, costs, and penalties determine the minimum bid.

The redemption period for Alabama is 3 years from the date of the sale.  Following the 3 year redemption period the county judge of probate awards the deed to the property to the tax lien holder.

Arizona Tax Liens

Sale Type:	Tax Lien Certificates
Interest Rate:	16 % APR
Bid Method:	Bid down interest rate
Redemption Period:	3 Years
Sale Date(s):	February
Statute Section(s):	Title 42, CH 18
Over-the-Counter:	Yes
State Website:	http://www.az.gov/

Arizona State Overview

Arizona utilizes tax lien certificates to collect delinquent property taxes. Investors are drawn to Arizona due to the 16 percent interest rate. Investing is made simple in Arizona because most of the counties make the lists available online and provide online resources for researching.

Tax lien sales are held annually in the month of February. It is required that investors register before the auction starts, and in most cases the counties will allow you to register the day of the auction. When registered, the investors will be given a bidder number, which will be used to identify the investor during the tax lien sale.

Arizona has a redemption period of 3 years. The bidding process is a Bid Down Interest, which allows bidders to compete by lowering the rate of return they are willing to accept.

Arizona rate of return is 16% on Tax Lien Certificates.  Property owners have a 3 year period to repay the delinquent taxes and penalties. Any time after the redemption period, but not exceeding 10 years, the investor may initiate foreclosure with the superior court in the county that the property is located in.

Bid Down Interest – Bidders compete through lowering their acceptable interest rate of return. Bidders will pay the combined total of all delinquent property taxes, penalties and fees.

Colorado Tax Liens

Sale Type:	Tax Lien Certificates
Interest Rate:	9%
Bid Method:	Highest Bid
Redemption Period:	3 Years
Sale Date(s):	October – December
Statute Section(s):	Title 39, Article 11
Over-the-Counter:	Yes
State Website	www.colorado.gov

Colorado State Overview

Colorado is classified as a tax lien certificate state. County tax sales are typically held each year between October and December. The county posts a list of all tax delinquent properties prior to September first of each year. The county sends out certified notification letters to the last recorded address of the property owners as well as all parties with a vested interest in the property being sold. The county also publishes a notice of the impending sale in local newspapers for a period of four consecutive weeks. All affected property owners have the right to redeem their property by making a full payment on their delinquent taxes, penalties, and related fees prior to the posted deadline. All properties that are not redeemed will be sold at a public auction held by the respective county. The county treasurer is responsible for conducting and officiating all tax liens sold. The starting bid is the combined total of all delinquent taxes, penalties, and fees.

Tax liens are purchased with a redemption period of three years. The original property owner can redeem their property ownership at any time during the three year redemption period by submitting a full payment of all delinquent taxes, penalties, and any related fees along with the designated interest rate. If the property owner does not redeem the property during the three year redemption period, the buyer may apply for a deed to the property by presenting the tax lien certificate and paying off the property’s unpaid tax balance.

Colorado has a rate of return at 9% above the federal discount rate. This means the interest rate can change from year to year. The federal discount rate is set by the federal government.

Colorado uses the “Premium Bid” method. Counties that use this method will have a starting bid that includes all delinquent taxes, penalties, and fees. Bidding starts at the set minimum and is bid up in price until the bidding stops. The highest bidder is awarded the tax lien to the property.

Many counties in Colorado, especially the larger ones (more population like Denver County, El Paso County- Colorado Springs, Adams County- Aurora, Jefferson County- Lakewood, and Larimer County- Fort Collins ) may use realauction.com for online bidding. They have some wonderful educational opportunities to get you familiar with bidding prior to the auction’s start. Be sure to take advantage of that!

NOTE: In Colorado, the bidder does NOT receive back any premium bid over the tax lien amount or any interest on that amount.

Illinois Tax Liens & Deeds

State Website: http://www.illinois.gov/Pages/default.aspx

Sale Type:	Tax Lien Certificates
Interest Rate:	18%
Bid Method:	Bid Down Interest
Redemption Period:	2-3 years
Sale Date(s):	Varies by County
State Statute(s):	CH 35, Title 7
Over-the-Counter:	http://www.iltaxsale.com

Illinois State Overview

Illinois utilizes a tax lien certificate system to collect delinquent property taxes. The state rate of return is set at 18% interest; however, bidders compete through a process of bidding down the interest rate. Illinois also conducts what is called a Scavenger Sale. These tax sales are for delinquent properties that were not sold during the annual sale. Scavenger Sales are the state’s alternative to offering over-the-counter tax lien properties. Illinois is an oral bid state. Illinois requires a preregistration along with a deposit at least 10 days before the auction. Counties usually publicly announce the sale about a month prior to the sale.

Illinois uses a Premium Bid method. The county sets the tax lien amount, and bidders compete by lowering the interest rate of return. The investor willing to accept the lowest amount of interest is rewarded the lien.

A 2-year redemption period is typically the standard in Illinois. The owner of the tax lien certificate has the option to extend the redemption period to 3 years from the date of the sale.

Illinois is unique in that it holds two types of tax sales; Regular tax sales and Scavenger tax sales.

Regular Tax Sales consist of properties which were delinquent the previous year. Bidding begins at 18% and tax lien certificates are sold to the bidders willing to accept the lowest rate. The property owner has up to three years to exercise his or her right to redeem the property.

Scavenger Tax Sales consist of properties which were delinquent for two or more years. According to (Sec. 21-260) the ‘minimum bid for any property shall be $250 or one-half of the tax if the total liability is less than $500.‘

Penalty rate: The person at the sale offering to pay the amount due on each property for the least percentage shall be the purchaser of that property. No bid shall be accepted for a penalty exceeding the maximum of 18% (Sec. 21-215). For Regular Tax Sales, the penalty percentage is then computed through the date of redemption as a percentage of the certificate amount (Sec. 21-355)

Attaining a Tax Deed: At any time within 5 months but not less than 3 months prior to the expiration of the redemption period for property sold pursuant to judgment and order of sale under Sections 21-110 through 21-120 or 21-260, the purchaser or his or her assignee may file a petition in the circuit court in the same proceeding in which the judgment and order of sale were entered, asking that the court direct county clerk to issue a tax deed if the property is not redeemed from the sale. The petition shall be accompanied by the statutory filing fee.

Notice of filing the petition and the date on which the petitioner intends to apply for an order on the petition that a deed be issued if the property is not redeemed shall be given to occupants, owners and persons interested in the property as part of the notice provided in Sections 22-10 through 22-25, except that only one publication is required. The county clerk shall be notified of the filing of the petition and any person owning or interested in the property may, if he or she desires, appear in the proceeding.

You must record your Tax Deed: Unless the holder of the certificate purchased at any tax sale under this Code takes out the deed in the time provided by law, and records the same within one year from and after the time for redemption expires, the certificate or deed, and the sale on which it is based, shall, after the expiration of the one year period, be absolutely void with no right to reimbursement. If the holder of the certificate is prevented from obtaining a deed by injunction or order of any court, or by the refusal or inability of any court to act upon the application for a tax deed, or by the refusal of the clerk to execute the same deed, the time he or she is so prevented shall be excluded from computation of the one year period. Certificates of purchase and deeds executed by the clerk shall recite the qualifications required in this Section (Sec. 22-85).

Indiana Tax Liens

Sale Type:	Tax Lien Certificates
Interest Rate:	10% Penalty 1st 6 months, 15% Penalty 2nd 6 months
Bid Method:	Premium Bid
Redemption Period:	1 Year
Sale Date(s):	Varies by county (August – October)
Statute Section(s):	Title 6, Article 1.1, CH 24
Over-the-Counter:	No
State Website:	http://www.in.gov/core/

Indiana State Overview

Indiana is classified as a tax lien state. Prior to July 1st of each year the county treasurer will notify the county auditor of all delinquent properties eligible for the annual sale. Tax sales are usually conducted between August through November. The tax sale is conducted as an oral public auction. Tax liens are purchased with a one year right of redemption with an interest rate ranging from 5%-10%. If the property owner does not pay all delinquent taxes, interest, penalties, and fees by the end of the twelve month period, the investor may begin the process of obtaining a tax deed. The lien holder must begin the foreclosure process within nine months of the sale date. A tax deed may be obtained 1 year after the date of sale, but no later than 6 months after the expiration of the redemption period.

Indiana’s interest rate of return ranges from 5% -10% depending on when it is redeemed. This rate is a penalty which is a flat rate and does not accrue with time. A rate of 5% applies to properties redeemed within 6 months of the sale and 10% for properties redeemed after 6 months, but no more than 1 year.

Indiana uses the Premium Bid method. The counties starting bid will include all back taxes, penalties, interest, and administrative cost. The lien is bid up in price with the investor bidding the highest amount receiving the tax lien certificate. The difference between the minimum bid, and the successful bid price is known as the tax Sale Overbid. This money goes into a tax sale surplus fund and may be claimed by either the former property owner who lost ownership rights or the tax lien certificate holder if the property redeems.

The foreclosure process in Indiana is outlined as follows:

Uncontested Foreclosure: 4½ – 6 months minimum.

1. Filing of the Complaint
2. Service of process on the debtor: occurs in 5-10 days unless service by publication
3. Application for default judgment: can be sought 21-24 days after service of process
4. Entry of default judgment and decree of foreclosure: should occur within approximately 30 days after the Application is filed.
5. Praecipe for Sheriff’s sale, including notice of same: by statute, cannot be filed until 3 months after the Complaint.
6. Sheriff’s sale: happens about 45-90 days from Praecipe, depending on the county.

Contested Foreclosure: 6-9 months minimum.

1. Filing of the Complaint
2. Service of process on the debtor: occurs in 5-10 days unless service by publication.
3. Appearance of debtor’s attorney and motion for one or more 30-day extensions of time to respond to the complaint: filed 20-23 days after service of process.
4. Answer to Complaint: filed 30 days after filing of Appearance and expiration of last motion for extension5. Motion for summary judgment: can be filed immediately after the filing of the Answer.
5. Objection to motion for summary judgment: due 30 days after the filing of the motion for summary judgment.
6. Summary judgment hearing: usually held 75-120 days after the motion is filed.
7. Entry of judgment and decree of foreclosure: occurs on day of hearing, or soon thereafter, unless the motion is vigorously contested with viable defenses.
8. Praecipe for Sheriff’s sale: can be submitted immediately after the entry of judgment assuming more than 3 months have passed since the complaint was filed.
9. Sheriff’s sale: takes place 45-90 days from Praecipe, depending on the county.

In Indiana local County Treasurers sell tax liens to the bidder with the highest or greatest bid. Depending on when the owner exercises his/her right to redeem the certificate holder will receive 5% to 10% penalty on the minimum bid and 10% on the excess or overbid. The property owner has one (1) year to exercise his or her right to redeem the property. The certificate holder can apply for a tax deed once the one (1) year redemption has expired but not later than six (6) months after the one year redemption period has expired.

Tax Sale Type: Tax Lien Certificate (Sec. 6-1.1-24-9 ).

Contact: County Treasurer. (Sec. 6-1.1-24-5(e) ).

Interest Rate and/or Penalty Rate: 5% to 10% penalty. (Sec. 6-1.1-25-2 <).

Bid Procedure: The highest or greatest bid. (Sec. 6-1.1-24-5 ).

Redemption Period: One year. (Sec. 6-1.1-25-4 ).

Law: Indiana Code, Title 6, Article 1.1, Chapter 24, “Sale of Real Property When Taxes or Special Assessments Become Delinquent,” and Chapter 25, “Redemption of and Tax Deeds for Real Property Sold for Delinquent Taxes and Special Assessments.”

Additional Notes:

Penalty interest rate paid upon redemption The tax lien certificate holder will receive a 5% to 10% penalty, depending on when the home owner exercises his or her right to redeem. According to (Sec. 6-1.1-25-2 ) when redeemed, the home owner will have to pay as follows:

For the minimum bid (delinquent taxes, special assessments, etc.):

• (105%) of the minimum bid if redeemed ‘not more than six (6) months after the date of sale; or’
• (110%) of the minimum bid if redeemed ‘more than six (6) months but not more than one (1) year after the date of the sale.’

For the overbid (the amount over and above the minimum):

• ‘plus ten percent (10%) per annum on the amount by which the purchase price exceeds the minimum bid on the property.’

Applying for a tax deed: According to (Sec. 6-1.1-25-4.6 ) the owner of the tax lien certificate must apply for the tax deed ‘not later than six (6) months after the one year redemption period has expired.’

Consquently, according to (Sec. 6-1.1-25-7 (a) ) if the purchaser ‘fails to file the petition within the period provided in section 4.6 of this chapter, that person’s lien against the real property terminates at the end of that period.’

In addition, according to (Sec. 6-1.1-25-7 (b) ):

‘If the notice under section 4.5 of this chapter is not given within the period specified in section 4.5(a)(3) or 4.5(c)(3) of this chapter, the lien of the: (1) purchaser of the property; or (2) purchaser of the certificate of sale under IC 6-1.1-24; against the real property terminates at the end of that period.‘

‘Notice’ according to (Sec. 6-1.1-25-4.5 ) includes a notice ‘not later than ninety (90) days after the date of sale of the certificate’ and a second notice ‘ not later than nine (9) months after the date of the sale’.

Iowa Tax Liens

Sale Type:	Tax Lien Certificates
Interest Rate:	24% per annual
Bid Method:	Rotational
Redemption Period:	1.75 years
Sale Date(s):	3rd Monday in June
State Statute(s):	Title X , CH 446 – 448
Over-the-Counter:	No
State Website	iowa.gov

Iowa State Overview

Iowa is classified as a tax lien state. On the third Monday in June of each year, the county treasurer will conduct a public sale of all the parcels that are delinquent on their property taxes. The tax sales are conducted as an oral public auction, although bids may also be mailed. Tax liens are purchased with a two year right of redemption. The rate of return is 24% annually, or 2% per month. Technically, liens are awarded based on the bidder willing to accept the lowest percentage of ownership of the property. However, most county treasurers don’t utilize this system due to its complicated nature. Most counties use either a random selection process, or a rotational bidding system. If the property owner does not pay all delinquent taxes, interest, penalties, and fees by one year and nine months into the redemption period, the investor may begin the process of terminating the right to redeem. The lien holder must file a “90 day notice of right of redemption affidavit.”

Iowa uses a few types of bidding methods. The “bid down ownership” method where investors compete by bidding down how much of the property will be security for the lien. Using this system, in order for a lien holder to prosecute the foreclosure, they would have to file a court action to sell the property,and then divide the process based on the percentage of ownership they hold. Because of this system’s obvious flaws, counties utilize a “Rotational Bidding System” or a “Random Selection” method. In rotational bidding the county treasurer offers tax liens to investors based on a list of all investors present. When an investor comes next on the list, they are given the opportunity to purchase the lien being offered. If they choose to decline, the lien is then offered to the next investor listed. In the process of random selection investors are randomly drawn and given the choice to purchase the line being offered.

Iowa has a two year right of redemption. If the property owner does not pay all delinquent taxes, interest, penalties, and fees by one year and nine months into the redemption period, the investor may begin the process of terminating the right to redeem. The lien holder must file a “90 day notice of right of redemption affidavit”. If a lien holder fails to file a 90 day notice on a certificate after a period of 3 years from the date of sale, the county treasurer may cancel the lien.

Maryland Tax Liens

Sale Type:	Tax Lien Certificate
Interest Rate:	24% Baltimore City, 20% Garrett County, 20% Montgomery County, 24% Prince George’s County
Bid Method:	Premium Bid
Redemption Period:	6 Months
Sale Date(s):	Year Round
State Statute(s):	Title 14
Over-the-Counter:	Yes
State Website:	http://www.maryland.gov/Pages/default.aspx

Maryland State Overview

Maryland utilizes a tax lien certificate system to collect delinquent property taxes. Tax sale dates are determined and vary by individual counties. Sales are published in the local newspaper and is circulated for 4 successive weeks. Registration rules vary per county, but most usually allow bidders to register on the day of the tax sale. Tax sales are conducted through an oral bid system. One advantage found in Maryland is the system used to collect payment from investors. The minimum bid amount which is all back taxes, penalties, and fees is due immediately, but the premium or overbid is only required when the investor files for foreclosure. This means if the property is redeemed, the investor never pays the overbid or surplus.

The rate of return in Maryland varies from 6% – 24% depending on the county. Many counties also have penalty rates included the return which positively affect the overall rate of return. Penalty rates are a flat percentage of the investment and do not accrue with time and dramatically change the overall rate of return in the investors favor.

Maryland uses the Premium Bid method. The starting or minimum bid includes all back taxes, penalties, interest, and administrative costs. The lien will then be bid up in price until a high bid has been established. The highest bidder will receive the tax lien certificate to the property.

Maryland has no specific redemption period which investors can begin the pursue foreclosure anytime after 6 months from the auction date. However, if a foreclosure proceeding are not filed within 2 years of the sales date the certificate becomes void.

• Tax Sale Type: Tax Lien Certificates (Sec. 14-820).
• Contact: Tax Collector. (Sec. 14-808).
• Interest Rate and/or Penalty Rate: 6% to 24% per annum. (Sec. 14-820).
• Bid Procedure: Premium bid / highest bid. (Sec. 14-817 (a) (2)).
• Redemption Period: 6 months. (Sec. 14-833).
• Law: Annotated Code of Maryland, Tax-Property Article, Title 14, Subtitle 8, Part III, “Tax Sales.”
• Property owner retains possession during redemption: According to (Sec. 14-830) the ‘owner of any property sold under the provisions of this subtitle shall have the right, during the period of redemption, to continue in possession of, and to exercise all rights of ownership over the property until the right of redemption has been finally foreclosed…‘
• Attaining a Tax Deed: According to (Sec. 14-833) the owner of a tax lien certificate can file for a tax deed six (6) months after the purchase of the tax lien but no later than two (2) years from the date the tax lien certificate was purchased.

Kentucky Tax Liens

Sale Type:	Tax Lien Certificates
Interest Rate:	12%
Bid Method:	Premium Bid
Redemption Period:	1 Year
Sale Date(s):	April-May
State Statute(s):	Title IX, CH 91, Title XI, CH 134
Over-the-Counter:	No
State Website:	http://www.kentucky.gov/

Kentucky State Overview

Kentucky is classified as a tax lien state. Tax sales re usually conducted in April of each year. The local county tax collector or local Sheriff will conduct a public sale of all parcels that are delinquent on their property taxes. The tax sales are conducted as an oral public auction and uses a premium bidding method. Tax Liens in Kentucky are purchased with a one year right of redemption. The rate of return is 12% annually, or 1% per month. The state also enforces a penalty of 10% of the total lien amount as compensation to the local tax collector. This amount is paid by the investor as part of the lien’s minimum bid, and is ultimately paid upon redemption by the property owner.

Kentucky uses a premium bid method. The counties starting bid will include the back taxes, penalties, interest and any administrative cost. The lien will be bid up in price until the bidding stops. The investor bidding the highest amount will receive the tax lien certificates to the property.

Tax liens in Kentucky are purchased with a one year right of redemption. If the property owner does not pay all delinquent taxes, interest, penalties,a nd fees within one year, the investor may begin the process of terminating the right of redemption. Within 50 days of purchasing a tax lien certificate the lien holder is responsible for sending a notice to the property owner. The notice must advise the owner of the penalty rate of 12%, as well as the impending consequences and legal actions if payment is not made.Tax deeds are obtainable through judicial foreclosure following the 1 year redemption period.

In Kentucky, the tax collector or treasurer will sell tax lien certificates to the winning bidders at the delinquent property tax sale.

• Tax Sale Type: Tax Lien Certificate (Sec. 134.450).
• Contact: The Sheriff or Tax Collector (Sec. 134.450).
• Interest Rate and/or Penalty Rate: 12% per annum. (Sec. Sec. 134.490).
• Bid Procedure: Premium / Highest Bid. (Sec. 134.450).
• Redemption Period: One (1) year. (Sec. 134.470 and Sec. 134.480).
• Law: Kentucky Revised Statutes, Title XI, Chapter 134, “Payment, Collection, and Refund of Taxes.”
• Notification According to (Sec. 134.490) the purchaser must, within 50 days after the purchase of a certificate of delinquency (tax lien certificate) give ‘notice’ according to the stipulations outlined in Sec. 134.490 to the owner of the tax delinquent property.