Business & Finance Taxes

How to Invest in California Tax Deed Sales Before An Auction

    • 1). Contact the county tax collector in the area of interest to find the procedure for tax deed auctions. Some counties conduct oral live auctions while others sell the property through online auctions. Find the dates of the tax deed auctions.

    • 2). Read the legal notice section of the county newspaper for notices of tax deed auctions. Notices must be published in California newspapers three times prior to the auction.

    • 3). Subscribe to the California county's mailing list to receive the Public Auction Tax Sale brochure. Sign up to receive on line notification about tax lien auctions.

    • 4). Read the list of tax defaulted properties published by the California county's tax collector in local newspapers. Keep a file of the tax defaulted property lists and note when the properties will be five years past due. The property should appear in a tax deed auction at the end of five years.

    • 5). Research property that will be sold at the tax lien auction. Conduct a title search to find additional liens or encumbrances. Contact the county assessor's office for property maps and find the legal access and zoning

    • 6). Visit the property and find the land boundaries. If possible, inspect any structures or other development. Note any environmental or hazardous waste conditions.

    • 7). Research why the owner has not paid the taxes. This may uncover serious problems with the property.

    • 8). Research the asking price of similar California land that is for sale. Find information about recent property sales in the area and formulate a competitive offer. Tax defaulted property owners may have an interest in selling to avoid losing the property in a tax lien auction.

    • 9). Contact the California landowner and tactfully propose an offer prior to the tax lien auction. Obtain the help of a knowledgeable real estate agent to assist with the purchase. Pay the past due taxes to stop the auction sale.

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