I’m thinking about bidding on some properties at a local tax sale. My question is; would bidding on properties that have higher taxes owed be smarter in the long run? For example, wouldn’t someone who owes $500 in back taxes vs. someone who owes $70,000 be more likely to pay during the redemption period?
I know the rates of redemption on these tax sale properties is like 95%, so any tips or suggestions for attending the auction is appreciated.
aubs129 - I don’t have an answer to your question, but I hope you do realize that if you bid on the $70k tax lien you will have to pay the $70k. If you bid on the lower one, you will pay only the lower amount. In any case if you eventually get the house, you will be out for the money you paid on back taxes. So make sure that the house is worth more than $70k.