Here’s what you need to know about tax lien and tax deed auctions in the Mi States – in Michigan, Minnesota, Mississippi, and Missouri…
If you live in or near Michigan, Mississippi, or Missouri, now is the time to go to tax lien or tax deed auctions in one of these states!
The Tax Deed States
Michigan and Minnesota are tax deeds states. Michigan is a very good state to buy tax deed properties, while Minnesota is not. There are a couple of reasons why I don’t recommend Minnesota tax sales. In Minnesota tax delinquent properties are forfeited to the state and sold at a tax sale. But they are not sold for back taxes. Bidding starts at the assessed value of the property.
Even when the property doesn’t sell at the tax sale and can be purchased over the counter, the price is still the assessed value of the property. No deal there, plus whether you purchase at the tax sale or over the counter, you have to pay 3% of the bid price to the county. And as with most tax deed properties you’ll have to clear the title to get title insurance. Tax sales in Minnesota do have one saving grace though. They will allow you to finance the property. But at a 10% finance charge.
Michigan on the other hand, is a great state to invest in. Many of the Michigan counties have online auctions and the state has it’s own website where most of these tax sales are hosted. Bidding starts at back taxes, fees, penalties and the cost of the sale. The property is sold to the highest bidder. Some counties do require a deposit in order to bid. Most of the counties that have online bidding provide a lot of information on the tax sale properties online. Most of these tax deed auctions take place from July through September.
The Tax Lien States
Mississippi and Missouri are both tax lien states and they both conduct their tax sales on the same day – the 4th Monday in August. They also have something else in common and that is the bidding procedure – premium is bid in both states. That is an amount over and above the amount of the lien that is bid at the tax sale. The bidder must pay the bid amount plus the amount of the lien. But there are also some big differences between tax lien auctions in these 2 states.
Mississippi has an 18% interest and a 2 year redemption period. Missouri liens pay only 10% per annum and only 8% on subsequent tax payments. In Missouri, any premium paid at the tax sale is returned to the investor when the lien is redeemed. Not so in Mississippi. You do not get your premium back in Mississippi upon redemption. Missouri seems like the less desirable place to invest, because of the lower interest rate, but that can actually be a good thing. Combine that with the fact that you must be a Missouri state resident to invest in tax liens there and that makes it less competitive. It also has a shorter redemption period – only one year. I like both of these states for tax lien investing.
Need Help Investing in Tax Liens or Tax Deeds?
If you need help investing in any of these states, now is the time to get it! Michigan tax sales are going on now, and will continue through the summer. Mississippi and Missouri tax sales are only weeks away and registration for these tax sales must be done ahead of time. These are tax sales that I know I can help you with. A few years ago I helped Alvaro, a coaching client from Ontario purchase 3 tax deeds at a Michigan tax sale. And just last year, my client Stephanie from Texas purchased 14 liens in Mississippi. How would you like me to go to one of these tax sales with you? Or just coach you to be able to do it on your own. CLICK HERE to learn about the 2 ways that I can help you get some liens or deeds this summer.
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