A Tax Sale refers to property being sold by a taxing authority or court to recover delinquent taxes. For most areas, the tax sales are managed by the county.

With tax sales, you can sometimes buy a property for a small fraction of its market value, or depending on the type of tax sale, you can collect a high interest rate (12% to 20%) when the lien is paid off.

Either way, tax sales offer potential win-win investments for you.

To compensate for lost income from delinquent taxpayers, local governments offer tax sales at public auctions. When you purchase a tax lien or deed at a tax sale, you are paying the taxes on behalf of the delinquent homeowner. Then in return you usually receive the principal paid for the lien plus any interest that has accrued when the delinquent taxpayer pays off the late taxes. If the late taxes are not paid by a specified date, you could foreclose and take title to the property.

If you are interested in taking our Tax Sales class for Rookies, visit Continuing Education to purchase the class materials. Call or email us for more information at: (708) 301-9662 or email us at: sales@ikonrealtors.com