Learn about tax default investing and how BackLot helps investors succeed
A tax default property is a property where the owner has failed to pay property taxes for a certain period of time. When property taxes go unpaid, the local government may place a lien on the property and eventually sell it through a tax sale or auction to recover the owed taxes. These properties often present investment opportunities as they can be purchased below market value.
When a homeowner stops paying property taxes, the local government (usually the county) places a tax lien on the property. After a certain period of delinquency (which varies by state), the government can sell either the lien itself (in tax lien states) or the property (in tax deed states) at a public auction to recover the unpaid taxes. The homeowner is typically given notices and opportunities to pay before the sale occurs.
A tax lien is a claim against a property for unpaid taxes. When you buy a tax lien, you're purchasing the right to collect the debt plus interest, but not the property itself. A tax deed, on the other hand, transfers ownership of the property to the buyer. In tax lien states, investors buy liens and may eventually foreclose to get the property. In tax deed states, investors buy the property directly at auction.
Yes, all 50 states have some form of tax default sale process to recover unpaid property taxes. However, each state has its own unique laws, procedures, and timelines. Some states sell tax liens, others sell tax deeds, and some use a hybrid approach. The specifics vary significantly from state to state, which is why BackLot's comprehensive nationwide data is so valuable for investors.
States are divided into three categories: Tax Lien states (like Arizona, Florida, Illinois) sell the lien certificate to investors who earn interest when the owner pays back taxes. Tax Deed states (like California, Texas, Georgia) sell the actual property at auction. Hybrid or Redeemable Deed states (like Hawaii, Tennessee) transfer the deed but allow the owner a redemption period to reclaim it. BackLot provides detailed information on the specific process for each state and county.
A redemption period is the time frame after a tax sale during which the original property owner can reclaim their property by paying the back taxes, interest, and fees. The length varies widely by state—from no redemption period in some tax deed states to 3-4 years in some tax lien states. Some states have different redemption periods based on property type or circumstances. BackLot's platform includes redemption period information for each state and county to help investors understand their timeline and risk.
Most tax sales are conducted at the county level by the county tax collector, treasurer, or sheriff's office. However, some states have centralized systems where sales are managed at the state level. Additionally, some jurisdictions hire third-party auction companies to run online or hybrid auctions. The specific authority varies by location, and BackLot tracks who conducts sales in each county to help investors know where to register and bid.
A tax sale occurs when property taxes go unpaid and the government sells the property or tax lien to recover the debt. A foreclosure typically refers to a lender (like a bank) taking possession of a property when the owner defaults on their mortgage loan. Tax sales are initiated by the government for unpaid taxes, while foreclosures are initiated by private lenders for unpaid mortgage debt. Both can result in properties being sold at auction, but the legal processes and parties involved are different.
Yes, if you fail to pay property taxes on a property you own, you can lose it through a tax sale. Property taxes are a senior lien, meaning they take priority over mortgages and other debts. Even if you own your property outright with no mortgage, failure to pay property taxes can result in the government selling your property at a tax sale. This is why it's critical for property owners to stay current on property taxes, and why tax default properties present opportunities for investors.
"Power to sell" refers to the legal authority granted to the government (county or state) to sell a property due to unpaid taxes. This power is established by state law and gives the taxing authority the right to auction off the property or tax lien without going through a traditional foreclosure process. Once the statutory requirements are met (notice periods, delinquency thresholds, etc.), the government has the power to sell to recover the debt. This power ensures that local governments can collect necessary tax revenue.
BackLot is a data company that specializes in tax default investments across all 50 states. We provide clear, organized data on tax lien sales and tax deed sales, with county-wide snapshots updated daily until auction. Our platform includes an interactive national map, profitability calculators, and a suite of tools to help investors find properties at major discounts and prepare for auctions.
Join our waitlist to get early access when we launch. You'll be notified as soon as the platform is available and receive priority access to exclusive property listings before they're available to the general public.
We specialize exclusively in tax default properties. Our platform covers residential, commercial, and land properties across 3,000+ counties in all 50 states.
No! Joining the waitlist is completely free. There's no credit card required and no commitment. Simply enter your information to secure your spot for early access.
Our data is updated daily until auction day. We provide county-wide snapshots of all available tax default properties, refreshed every day leading up to the auction. This ensures you have the most current information on property availability, auction dates, and any changes to listings.
BackLot is a data company focused exclusively on tax default investments nationwide. We provide clear data on both tax lien sales and tax deed sales across all 50 states and 3,000+ counties. Our interactive national map is the flagship tool, but we also offer a complete suite including profitability calculators, auction preparation tools, daily updates until auction, and investor education resources. We educate investors and specialize in providing the clearest data on tax default opportunities available at major discounts.
Yes! You can customize your search by state, county, city, property type, price range, and more. Our advanced filters help you find exactly what you're looking for in your target markets.
