What is a Tax Deed Sale?
What is a Tax Deed?
According to Investopedia, a ‘Tax Deed’ is a legal document that grants ownership of a property to a government body when the property owner does not pay the taxes due on the property. A tax deed gives the government the authority to sell the property to collect the delinquent taxes and transfer the property to the purchaser. Such sales are called “tax deed sales” and are usually held as auctions where the minimum bid is the amount of back taxes and fees owed.
How does the taxing authority acquire the tax deed?
In order to acquire a tax deed, the taxing authority – the county of sacramento in this scenario, must go through a series of legal steps, including notifying the property owner, applying for a tax deed, posting a notice at the property and posting a public notice. There are more steps, but that should be enough for an investor to know that the county has gone through its due diligence before offering the property up for sale at auction. Losing a property over non-payment of taxes is a sad scenario for home owners, but the flip side is that the taxes owed and reclaimed at the tax deed sales go back into the community supporting public schools, roadways and more.
Buying a home at the Sacramento County Tax Sale sounds scary, intimidating and lucrative. It is! Read about our Sacramento tax deed sale purchase experience.