REAL ESTATE INVESTORS, IF YOU COULD BUY SINGLE FAMILY HOMES WITH NO MORTGAGE... TED THOMAS Every year hundreds of thousands of property owners neglect to pay property taxes for various reasons. So what happens then?? The remedy for local government is to confiscate that property and resell it at a tax defaulted property auction for only the back taxes with no mortgage. The majority of these auctions use a public oral bid system. To quality as a bidder is simple; you just need to register before bidding. The starting bid is the amount due to the local government for back taxes plus penalties and interest. If you win, in most instances, you must immediately pay for your purchase. It doesn't matter where you live; county governments in all 50 states are authorized to hold auctions to recover delinquent back taxes. Some states offer tax lien certificates, other states offer tax defaulted property auctions (tax deeds) which are used to collect the past due property taxes owed. The difference? A tax lien certificate entitles you to collect the amount of tax you paid plus the interest penalties; a tax deed purchased at auction allows you to become the owner of the property for the price you bid at auction the mortgage is extinguished, that is deleted by law. The secret to becoming a successful investor in tax defaulted property (tax deed) real estate is to know the who, what, when, where, why, and how these tax auctions take place.