Jesse Loomis is the CEO of Bid4Assets which is the largest online auction site for tax deed properties, and it also sells mortgage foreclosure properties as well. Jesse explains there are two major tax deed instruments.
- Property conveys directly from property owner to investor
- Property conveys from property owner to county/jurisdiction agency to investor
There are many elements that vary between states for tax deed auctions that Jesse explains in his video.
Before a tax deed can be sold, a standard minimum of at least one year of delinquency must occur on a property but in most cases of tax deed sales, there is usually more than one year of delinquencies before it’s offered at sale. Jesse Loomis explains a few of these tax deed process highlights:
- There are four main ways to actually purchase a tax deed: a) simple tax deed auction b) redeemable deed tax sale c) matured tax lien foreclosure process d) over-the-counter parcels that have reached maturity
- Be sure you understand how you obtain title insurance and quiet title on a property because this varies drastically between states.
- This includes which extraneous liens travel with the delinquent parcel like utility liens, weed mitigation bills, etc…
- Due diligence is an incredibly key part of your process in ensuring you know what you are getting especially when it’s a tax deed sale where you acquire the deed itself.
Overall, it’s important to remember that just like tax lien sales, it’s important to understand the state statutes before purchasing a tax deed. Neither a tax deed auction site like Bid4Assets nor the county government are responsible for what an investor buys so it’s important to conduct proper due diligence. Learn more from Jesse Loomis in his video!