Attended My First Tax Certificate Sale In GA

This week I made it to my first tax certificate sale in Georgia. It was a very small group, maybe 7 or 8 that were there to bid. Only three properties were available at the start. Right before they began someone came out and took one off the list. Apparently the owner paid up that morning. The other two were auctioned off. On the first one the taxes due were $355. It was a small vacant lot. Only one person bid the minimum and he lives next to the vacant lot. In GA they owner has one year to redeem their property by paying the bid amount plus 20%. The other property was an older home on 9 acres. The taxes due were $807. The bidding took it to $6000.

I don't see much down side to the idea of earning 20% on your money. As long as you check out the property to make sure it is worth at least what you are paying in taxes then it seems like a very safe, high interest investment. What risks are there that I am missing? Thanks!

Just make sure it's something you can sell in the event the owner doesn't redeem. As one county website in Iowa says, "if you buy a pig in a poke that's what you'll get".

always go to the prop. to inspect before buying.....kenmax

what happens to mortgages on properties that do not get redeemed?

Hi there - i'm just now learning about Tax Lein Certificates - but I'm already confused. I visited the Cobb County Tax Commissioners site - and there is a lot of info on what appears to be Tax Deed sales.

I'm more interested in Tax Lien certificate sales (i'd rather get the interest, than hold the property at this point). According to the info i was able to find Georgia does both, altho i don't know if Cobb County does.

In any case - it sounds like what you went to was a Lien Certificate sale right?

So the first guy who bought the vacant lot certificate with the back taxes for $355 - how much did he wind up bidding on it? Are there counties here in the Metro area that are easier to do this in?


Also - where did you find the info on the Tax Certificate Sale in the first place?

[ Edited by Tryska on Date 04/05/2005 ]

Hi Tryska, I found the information on the Georgia sales on this website and others similar to it. One I read was at the Douglas County, Georgia Government site. Search in Google for tax deed sales, Douglas county and you should be able to find it. The article was written by the tax commissioner and gives a lot of good details. The terms tax deed, tax lien and tax certificate sales are confusing. Many use them for the same thing. My county calls it a tax certificate sale. The article on the Douglas county site calls it a tax deed sale but it is the same process as where I live. Basically it is the 12 month redemption period and 20% above what was bid on the property. The auction I went where the tax owed was $355 was purchased for $355. That was the minimum starting bid and only one person bid on it so he got it for that amount. I missed our county sale yesterday but hope to get to the next one. Let me know if there is anything else I can answer for you and let me know what you find out in Cobb county. Thanks and best of luck!

What happens if the property has environmental issues, such as buried fuel tanks, chemical spills, etc. Is the person buying the tax certificate responsible for these issues or do they remain with the original property owner? Thanks-EB

From what I have read/learned you would be responsible ONLY if the 12 month redemption period passes, no one pays off the owed taxes and you complete the steps necessary to foreclose on the property and take ownership and get the deed. Until the point where you become the owner you are not liable for issues on the property. I am not an attorney so take this information as just that, my opinion. Others may be able to give more legal details.

Anyone got an answer for what happens if the 12 months passes and there is a mortgage on the property? Also, did you find out anymore in Cobb County. I'm searching for info too. Thanks.

Mortgages are wiped out. Tax liens are superior to all others, and the County is required to notify all lienholders. This is supported by the fact that, when you "foreclose on the right to redeem" you are required to notify all lienholders again. You'll need a lawyer to do a title search and perform a "Quiet Title" action. More info:
Go to gataxsales with a d-o-t c-o-m after it.
Or gtsweb with a d-o-t c-o-m
Or search google for Georgia Quiet Title
Theres some good info there.

...Ben