How to Buy Government Tax Lien Property

Local government agencies continually sell tax lien properties. Some counties hold monthly auctions, while others hold less frequent sales. If a homeowner fails to pay property taxes, the county can eventually sell the property. Properties include commercial and residential assets that vary in condition.


Choose the location where you want to purchase property. Each local entity has its own rules about tax lien sales.


Decide what type of property you want: residential, commercial or undeveloped. In addition, determine whether you want an investment rental property. If you find a house with a reasonable price, but the house requires substantial repairs, you might easily spend more than you budgeted.


Study the county's posted auction notices. Most notices are available 30 days before the auction. Search the county's website or a local newspaper for additional information. Several commercial websites, such as, gather information about auctions held throughout the United States.


Develop a list of desirable criteria. For example, look for a house that is vacant, less than five years old and in a certain ZIP code. Establish a budget so you can quickly identify viable properties. Analyze each property's condition so you do not place an inflated bid.


Submit a bid. Check with local auction authorities to determine whether you must pre-register for the auction. Learn whether you must physically be present. You might be able to place online bids from outside the jurisdiction. Some counties allow pre-bids, in which you submit a bid before the auction starts.