What is the bidding process at tax lien sales?
In some states you will be bidding the interest rate down (e.g., Illinois, Arizona). The person willing to accept the lowest interest rate is the winning bidder. In other states (e.g., Missouri), bidding begins at the minimum bid set, and the price is bid up. The winning bidder is willing to pay the most. These two procedures are combined in New Jersey, where premium bidding (bidding a minimum bid up) begins once the interest rate reaches zero percent. Nebraska has a round robin procedure in which the properties are offered to everyone in turn, and the bidder can either accept a property as it comes up or decline it. Thanks for reading through some of the most frequently asked questions.
