How to Buy a Tax Lien in Georgia
When a property owner in Georgia fails to pay the property tax, the county tax commissioner may sell the real estate to raise money. The property is sold at a tax lien auction on the steps of the county courthouse the first Tuesday of the month. In Georgia, there are two types of tax lien sales: non-judicial and judicial tax sales. Investors attempt to purchase the auction property for a price lower than market price. The original owners may redeem the property by paying all back taxes, interest, penalties and costs.
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Instructions
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Contact the county tax commissioner in the area of interest to find auction information. In a non-judicial tax sale, the commissioner requires the county sheriff to sell the property at a Sheriff's Sale. The highest bidder takes ownership of the property.
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Read the legal section of the local newspaper. Notices of Sheriff's Sales must be printed prior to the auction.
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Watch the legal notice section for notices of Judicial Hearings and Judicial Tax Sales. With a judicial tax sale, a petition is filed with the courts to auction property with past due taxes. The original owner has 60 days to redeem the property after a judicial tax sale.
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Find the county requirements to buy at a tax lien auction. Most counties require the buyer to be present at the auction. Full payment must be made the day of the auction by cash, a cashier's check or a money order.
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Research the property thoroughly at the county recorder's and assessor's office. Conduct a title search to find any additional liens or encumbrances. Determine the zoning, permitted use, easements and legal access.
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Visit the property and find the parcel boundaries. Carefully inspect any structures and note challenges to development. Identify toxic waste or hazardous substance problems.
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Research recent sales of similar property. Read real estate advertisements to find the asking price of similar real estate. The minimum bid at the tax lien auction is the total of the back taxes, interest, penalties and costs.
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Make a competitive bid at the auction. Retain ownership of the property for one year and wait for the original owner to redeem it by paying all costs plus interest. The original owner has a one year right of redemption for a non-judicial tax sale.
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Send the original owner a notice at the end of one year with a deadline to pay or to lose all rights to the property. After taking ownership, initiate quiet title proceedings with the court to declare the real estate is owned free and clear.
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