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In order to bid, the bidder needs to usually fill out a form and get a bidder number. Some counties require this to happen a few days in advance but some allow you to do this on auction day. In many cases also proof of funds needs to be submitted on auction day or a few days in advance however since the Dollar amounts dealt with in Tax Lien sales are less than in the Tax Deed Auction world, the cash requirements are usually much lower.
Once you are registered for the auction you will receive a bidder card and a bidder number and then you are allowed to bid. Please make sure to call the county of your choice prior to such an auction to make sure you know what you need to bring. Tax Lien Auctions have one specialty in that the bidding often is not on the actual dollar amount of the Tax Lien Certificate although there are auctions that work like that but instead the bidding is on the Interest rate and in addition the bidding goes backwards meaning downwards.
So basically the Tax Liens are auctioned off to the bidder who is willing to accept the lowest interest rate for their investment. Then you wait until the owner either redeems the Tax Lien Certificate and you get your investment back plus the high interest rate or you purchase the subsequent years of back taxes once they are delinquent and wait until the Redemption period is over and start foreclosure on the property.
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