Foreclosure Process on Tax Liens in Florida

Foreclosure Process on Tax Liens in Florida

Tax liens can be a great way to supplement your income or your retirement nest egg.   In the United States, each of the states is either a tax lien state or a tax deed state. There are two hybrid states, Georgia and Florida. All of the other states are divided evenly along the line of being a deed or lien state. For our purposes with this article, we are going to consider tax liens in the state of Florida.

We are going to go through the steps that are needed to collect on a tax lien that was not paid in the redemption period. We are going to look at costs, court proceedings and auctions that lead up to us being paid as the tax certificate holder. By knowing what to do, you will be able to worry less about getting your money. Tax lien certificates in Florida are a great investment and you should never lose your money if you know what to do and when to do it. Let’s focus on the three following areas to understand the tax lien foreclosure process in Florida:

  1. Understand the redemption period.
  2. Working with the clerk of the court.
  3. Understand the auction process.

When you buy a tax lien certificate in Florida, you will be given a redemption period. This is the amount of time that the owner of the property will have to pay you your principle and interest. This period is usually two years. If you are not paid, you can continue to collect interest or you can begin the foreclosure. After your two-year redemption period, you can begin the foreclosure period any time you would like.

To begin the foreclosure process, you will need to contact the clerk of the court for the county where the property is located. The clerk will have the needed paperwork for you to file the foreclosure. There will be a fee charged, but you will receive that back when the foreclosure takes place.   Once the foreclosure is final, an auction date will be set.

At the auction, the starting bid will include everything that you are owed. All the money you paid for the tax certificate, the interest you are owed, fees you have paid and court costs will all be used to determine the starting bid. If someone bids at least the starting bid, you will get your money. If the starting bid is not met, then you will receive ownership of the property.

Foreclosing on a tax lien in Florida is simple. You do not need a lawyer nor do you need to worry about costs.   Follow the steps and get the help you need from the clerk of the court. You should never lose money in Florida liens. Take care of business and you will have reaped a very nice return of 18% from your Florida tax liens.

Best of luck in your investing! You can do it!