While it may seem like a complicated process, tax deed investing can be a lucrative option for someone willing to take on the challenge. Investing in tax deeds is a great decision for investors willing to tackle large projects and work toward their financial goals. If you’re trying to figure out where to start when buying a tax deed or just want to learn what a tax deed is, you’ve come to the right place. The tax experts of Tax Title Services are here to walk you through all of the steps of the tax deed investment process, including the rights a tax deed property gives you, how you can leverage those rights for investment purposes, and how our team can help you succeed in all of your tax deed investment endeavors!

Keep on reading to learn all about tax deed investing and how title insurance can help you with your tax deed sale properties. And for any questions or interests you may have, contact Tax Title Services online or give us a call at 949-798-1180.

What Is a Tax Deed?

Tax deed sale properties can get a little confusing. A tax deed is a legal document that grants ownership of a property to a local municipality or government body when the original owner of the property is unable to pay the taxes due on the property. In other words, a tax deed is the consequence when a homeowner is unable to pay their home’s taxes. If a homeowner does not pay their taxes, they are forced to grant ownership of their property to the government. And because property laws and taxes vary by state, it’s a little hard to say exactly how your state handles tax deeds. However, there are some general and basic processes when it comes to the act of tax deed investing. Most times, available tax deeds are open to investment by the general public. We’ll talk more about this in the following sections.

How Do I Get a Tax Deed? What Rights Does a Tax Deed Give Me?

Like we said earlier, every state has its own procedure for obtaining a tax deed. However, it’s pretty safe to say that your state offers either a live or online auction for tax deeds. Here’s a bit more about these options:

  • Live Auctions: These are more common in rural, smaller areas where it’s easier for people to congregate and online services are more limited. Just do a quick internet search for a tax deed auction in your area and you will probably find one!
  • Online Auctions: These are the more common options, as they’re great for areas with large concentrations of people that would make a live auction less productive. To find an online auction, just search for one on a search engine!

With both of these options, it’s important to think about the procedure the auction takes to distribute the tax deeds. These may be according to price, interest rate, premiums, or after-auction sales, or there may even be a lottery that randomly distributes them.

Once you win a bid on a tax deed, you’re granted a lot of rights. You have the option to foreclose on the property depending on if the original owner cannot pay off their taxes. If they choose to continue to pay off their debt, you can earn interest and penalties as they do so.

How Can Tax Title Services Help Me With This Process?

Once the property is completely owned by you, you have the opportunity to turn around and sell it for a profit. However, before you do that, it’s essential that you have title insurance. Title insurance protects you from any existing issues on the title of the property you just bought. Some of these issues include human errors in public records, impersonation of the previous owner, unclear property boundaries, and more. Title insurance ensures that your property will be safe from liens or errors on the title and helps make sure your property sale goes smoothly and efficiently!

Tax Title Services is a leading provider of title insurance to all property owners across the country. If you’ve recently invested in a tax deed and need title insurance in order to sell your property, we’re the source you’re looking for! Our team of tax experts can help insure your title in three easy steps, leaving your home free from any challenges or potential losses if a claim is filed against your property. Don’t wait any longer—Tax Title Services is ready to help you today!

To learn more about how our team can help you with buying a tax deed property and acquiring title insurance, call Tax Title Services at 949-798-1180 or contact us online today!