How long do you have to wait after the auction to get your title?

The answer is, as is almost always the case, “it varies.” It depends on your own state’s statute. Here in Indiana, it’s one year. What that means is, after you have won the real estate tax lien at the county auction, if the owner doesn’t pony up their back taxes, penalties and interest within one year, then you get title to the house. But there are some exceptions; if the lien is not sold at auction, here in my county (St. Joseph County), a second auction will be held, and then the period of redemption  is only four months.

A blog entry on “Blog the Rockies” talks about tax liens in Boulder County, Colorado, where the period of redemption is three years. Of course, if you’re interested in gaining title to homes, then three years is an awfully long time to wait, but this is one of those regions where very few homes actually switch title to the investor. In almost every case, the investor isn’t going for title, but going after the 11 percent interest they will earn between the auction date and the day the original owner pays their delinquent tax bill. So–you’re not going to be able to pick up title to a house for five hundred bucks in Boulder County, but still, eleven percent interest isn’t chump change, either.

Find out more in my book, “Learning to play the real estate tax auction game: The best recession-proof real estate investment you’ll ever make”, now available on Amazon.com or by clicking here.