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 free info from the tax sale experts at Tax Title Services will help you through 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) 835-0426.

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 or third-party when the original owner of the property is unable to pay the taxes due on the property.

In other words, a tax sale is the consequence when a homeowner is unable to pay their home’s taxes. If a homeowner does not pay their taxes, the taxing government can either issue or sell a tax lien against the property or sell the property.  Because property laws and taxes vary by state, it’s a little hard to say exactly how your state handles delinquent property tax sales so check here for your state.

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 check here to search for a tax deed auctions in your area and you will probably find one!
  • Online Auctions: These are fastly becoming the more common option, 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 here!

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.

Once you win a bid on a tax deed, you’re granted a lot of rights. In many states you are granted immediate access to the property since you now own the property. Some states do have a brief redemption period before you own the tax deed after a tax sale. If you bid on a tax lien, you may have to wait the appropriate amount of time for a redemption period to expire before you have the option to foreclose on the property. If an affected party (delinquent taxpayer, lien holder, etc…) to a tax lien sale, or a tax deed sale where there is a redemption period, chooses 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, challenges to your ownership, and more. Title insurance ensures that your property will be safe from liens or errors on title and helps make sure your property sale goes smoothly and efficiently!

Tax Title Services is the nationwide leader in verifying that tax sale properties met all statutory requirements with our Due Process Certification. If you’ve recently invested in a tax deed and need title insurance in order to sell your property, we are the fastest option to get you there! Our team of tax sale experts can qualify your tax deed for title insurance, 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) 835-0426 or contact us online today!