What Is a Tax Certificate Sale?
A tax certificate sale is when a government sells off the debt of unpaid taxes to investors. While there are possible variations, it is almost always the county government selling off unpaid real estate taxes.FunctionTaxes have to be paid for government to work. So if some property taxes are not paid at the right time, the county government will sell off the tax debts to investors to get the money it needs.BenefitsThe county pays interest to the investors until the tax is paid, when the notes are redeemed.Time FrameAfter a certain amount of time (it varies by county, but often two years) if the tax debt is not paid then the investor holding the tax certificate can foreclose on the property to repay the certificate.FeaturesThe important part is that if the investor forecloses on a property for a tax certificate then he owns it, outright. It doesn’t matter about any other mortgages or charges on the property, who originally owned it or whether the property was worth more than the certifi
