Tax Lien and Tax Deed States Bidding Method Types
There are different types of bidding methods that property investors can choose from in tax liens and tax deed sales. Here they are:
*Percent Ownership - This type of bidding method is used in the state of Iowa, which is a tax lien state. Neither the opening bid nor the rate of interest moves in this method. The winning bidder would share the percent ownership of the property with the current homeowner. The percent ownership would go down to the lowest acceptable rate the investor is willing to accept. This form of bidding only happens if more than one investor bids on a property. Furthermore, the percent ownership situation only applies if the homeowner doesn't redeem, and a process of foreclosure on the property is being done.
*Sealed Bid - Tax deed states Wisconsin, Nevada, and Maine uses this method. Bids on tax deeds which are available are mailed to the county. The highest bidders for each tax deed property wins.
*First to Bid Tax Amount - The first investor to pay full cash of the tax lien is awarded the certificate. It is why it's called a "first come, first served" method. Wyoming, Montana, and Kentucky states use this.
Find out more about tax liens and deeds investing if you are looking for a better way to invest your money.