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Expert Interview on the Missouri Tax Sale Process with Scott Walterbach

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Tax Sale Resources
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Click to download the full white paper review of the Missouri Tax Lien Sale Process by Scott Walterbach of Bessine Walterbach, LLP.

Introduction

Scott Walterbach of Bessine Walterbach explains the Missouri Tax Sale Process in full detail in his white paper as well as a follow up interview with Brian Seidensticker, CEO of Tax Sale Resources.  The tax lien sales in Missouri happen annually in late August and there are definitely some nuances to the process you should understand before investing.

Interview Summary

Walterbach reviews the state statutes governing Missouri tax sales which are held under R.S.Mo. Chapter 140 which is also known at the Jones-Munger Act.  The collection process in Missouri is considered a non-judicial administrative process.  Here is a brief overview of the tax sale process in Missouri as described by Scott Walterbach:

  1. All sales are held the 4th Monday of August each year and most sales are held live although there is a trend toward online offerings.
  2. “Delinquent” status is really up to each county.  Therefore, some counties offer the year’s previous delinquent taxes whereas others may wait another full year before the first offering of the delinquency.  However, a first offering must be held within three years from the initial delinquency.  
  3. Delinquencies must be noticed at least twice and published for three weeks in a newspaper by the county.
  4. The minimum bid set for a tax lien sale includes all taxes due plus penalties and interest.  
  5. Delinquencies are offered once during the sale, & if not sold it would stay in the back tax book for the following year.  A delinquency can appear three consecutive years before being available for sale anytime as a “post-third sale.”
  6. The redemption period for 1st and 2nd offerings is one year from the date of sale.  The redemption period for the 3rd offering is 90-days
  7. In Missouri, in order to participate in the sale, a bidder must be a resident of the state and must not owe delinquent taxes to that county.  
  8. This is a bid up premium state where 10% interest is earned on the original delinquent amount only not the surplus.  Plus, an 8% interest is earned on any subsequent taxes paid on the same parcel.  If redemption occurs, the surplus is returned plus the tax amount bid and all interest earned on the delinquency.
  9. A tax sale certificate is issued to the winning bidder.  The bidder must pay the bid amount immediately.  A collector’s deed can be issued upon proper application of the purchaser after the one-year redemption period but before eighteen months post sale, and demonstrating to the collector’s satisfaction the required notices have been sent to all interested parties in the parcel.

Conclusion

Scott Walterbach also covers the title quieting process in Missouri as well as all compliance requirements for each step of the process.  Be sure to read the white paper in its entirety and check out his interview for even more information. Walterbach also conducts an annual seminar for investors and attorneys to provide detailed information on the tax sale process in Missouri.

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