How to prepare to go to a tax auction. Learning how to prepare to go to a tax auction is something that every investor needs to know. I won’t go over research or anything like that. In this post I will only cover what you need to know to be ready for a tax auction.
There are some websites that manage the auctions for multiple counties. The largest site is www.Bid4Assets.com. They have auctions for many counties in California, Idaho, and other states. Most counties have their own website that manages their own tax auctions.
www.Publicans.com is another website that handles many counties in Texas, Tennessee, and others. They are a law firm so tax auctions isn’t all they do.
To find out if the county you are interested in has online auctions you will need to contact the appropriate party. This could be the county treasurer, tax collector, or clerk of the courts. If you look under one department and don’t see the information you are wanting, check the other departments also. If you still can’t find what you are looking for, contact the Treasurer and they should know where to direct you.
Once you found the website for the online auctions you will need to read their terms. Some counties require registration at least a day before the auction. Others want it a week before or the day of the auction. Online auctions often require a deposit prior to bidding. This deposit may be required for each property you are interested in purchasing. In this case one deposit for five properties will not be accepted. You would need five deposits for five properties.
If the county does not offer online auctions, be sure you know the requirements before making the trip to the courthouse. Physical auctions usually don’t require a deposit, but they want payment immediately after the auction. The method of payment typically accepted is cash or certified check. Rarely do the accept credit cards.
If you are flying in or driving long distances, determine what time you need to leave in order to arrive at least 30 minutes early. Some auctions will not allow registration once the auction has begun. Give yourself some time for heavy traffic and unforeseen events that could slow you down.