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Now that we understand the benefits of tax sale auctions does it really make sense to you that counties are going to make it difficult or expensive to obtain tax sale auction lists? Of course not! They want to make it as easy as possible for you!
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The second and primary objective that it meets is that the property is returned to the tax roll as a tax revenue producing property. The county would rather not have to even deal with tax sale auctions. The ideal situation of course, would be that all property owners make timely payment of their taxes so that tax revenues would be at capacity. But when this doesn't happen the next best thing is that the property is returned to the tax roll as a revenue producing property as quickly as possible. This is done when the property is sold to a responsible tax payer at auction.
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When a property is sold at tax sale auction two primary objectives are met. The first is that the auction itself brings proceeds from the selling price. Properties that are sold at a tax sale auction have not produced revenue for a period of 1-3 years. Accordingly, the proceeds from the auction will essentially reimburse the county for covering that property's share of governmental expenses during this time.
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As an informed investor, we must look at it from the county's perspective. The county is foreclosing on these properties since the owner failed to pay the property taxes. Property tax payments contribute to a variety of expenses that help a county and its' government operate. We're talking about things such as law enforcement, fire and rescue services, educational funds, road construction and maintenance, and a lot of other necessities. When someone fails to pay the property taxes the county no longer has the money needed from the tax roll revenue to pay for these costs.
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Let's face it. There's a lot of misinformation out there when it comes to investing in tax foreclosure properties. One of the most laughable pieces of misinformation that I seem to always come across has to do with auction lists. Much of this misinformation implies that you must belong to some sort of exclusive or paid membership club to access a tax sale list. Or that you need to fork over hundreds of dollars before you can access a list. The truth of the matter is tax sale lists are FREE, have always been FREE and will always be FREE.
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The best list for you is the list of people with whom you have already begun the process of building a relationship. Don't underestimate its value for a minute. These people already know you, and may even trust you (at least more than those on the mailing list you're thinking of renting), which means that the amount of time it will take to make the sale is shorter.
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