What impact has the COVID pandemic had on redeemable deed investing?
The COVID shut down has affected tax lien and tax deed states by postponing or cancelling some tax sales. Especially the tax sales that were originally scheduled for the spring or early summer of 2019. And many of those tax sales went online for the first time. But how has it effected the redeemable deed investing? After all, most of the redeemable deed states only have live tax sales.
In the state of Texas, who’s more populous counties have live tax sales once a month, most sales were cancelled during April, May and June, but then resumed by July or August. Texas did have a couple of smaller counties that had online tax sales, but once the shutdown hit, 2 more counties switched over to conducting online auctions.
The State of Georgia also has counties that conduct live redeemable tax deed sales each month. Many of those counties are still postponing their tax sales. Some will take place in November and some not until December.
Changes in the Redemption Period for South Carolina
South Carolina tax sales will go on as planned since most of the SC counties have their sales in the fall. The big change in South Carolina is a new bill that extends the redemption period for redeemable deeds purchased in 2019. Investors who purchased redeemable tax deeds at the 2019 tax sales before the 9/30/19, will now have to wait another year to get the deed. Interest will continue to accrue during the second year. It’s not clear if the investor will have to pay the subsequent taxes and get interest on those payments upon redemption. And it’s not clear how the interest cap will be applied to interest earned in the second year.
These are just some changes in only 3 of the 7 states that sell redeemable tax deeds, due to COVID. Want to learn more about investing in redeemable tax deeds? Like which states are the better states to invest in. Which counties have online tax sales? How you can get all the tax sale information and register and bid at these tax sales. And how to pick the right properties to bid on.
Join me for a Live Virtual Workshop on Redeemable Tax Deeds, Sunday October 18, 2020 from 1-3pm Eastern Time (10am-12pm Pacific). Find out more at https://www.taxlienlady.com/redeemable-tax-deed-sales-virtual-workshop/
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