Methods that Choose Tax Lien Sales Winners

Tax lien sales or auctions are the traditional method of getting lien certificates. However, with the popularity of the internet, some states conduct online auctions that reach a wider scope of property investors. Tax lien sales are usually held once a year in separate counties. So, it is a good idea for you to do your due diligence on the schedule of the sale for the county you’d like to attend to and the properties you’re interested.

Also, each U.S. state conducts their sales quite differently. It is because if more than one property investor is looking to purchase the same lien, the winner can be determined by one of these methods:

Rotational Selection
The winner is determined depending on the number the investors are holding during the sale. The first lien certificate for sale would be offered to the lowest number.

Random Selection
The winning investor is chosen from a group looking to win the lien certificate via random selection of a computer.

Premium
Whoever pays the highest amount above the original lien is declared the winner.

Bid Down the Interest
Whoever accepts the lowest rate wins the lien certificate.

Bid Down the Ownership
The property investor that is willing to buy the lien certificate for the lowest percent of ownership wins.