Property Tax Liens In Connecticut
Property Tax Liens In Connecticut are unique. They offer both “tax liens” and “tax deeds”. But the State of Connecticut doesn’t have County Governments.
They do have eight counties. Just no County Government.
All local government is done at the municipal level. Thus you will be dealing with municipalities as opposed to “counties”. And some offer “liens” while other offer “deeds”.
The tax collector for the municipality conducts the tax sales. You will have to contact the municipal tax collector for information about the tax sale.
For the best general information, you’ll need to read the information online from the State of Connecticut concerning tax sales.
The minimum bid will be an amount determined by the municipality. It is usually the total delinquency including principal, interest, and fees due plus the cost of the auction.
Bidding will increase in an orderly fashion and as appropriate to maximize the final price.
When someone is declared the highest bidder, he or she submits the deposit and must pay the rest of the bid in cash or certified funds by a fixed deadline.
Otherwise, the deposit is forfeited, and the next-highest bid might be accepted instead depending on the rules announced at the auction. All unsuccessful bidders get their deposits back immediately.
Generally the smaller municipalities offer “tax deeds” while the larger ones offer “tax liens”.
In the “tax deed” cities there is a six month redemption period. Once the redemption period has passed you own the property. Should it be redeemed you will receive your interest of 1 1/2% per month. If there is an IRS lien on the property they have an additional 120 days to redeem. If the IRS redeems the property in THEIR redemption period you are only going to receive 1/2% per month interest. Hint: Check for IRS liens prior to bidding!
The tax deeds sold in Connecticut are what are known as “redeemable deeds.” A deed sold at the tax sale is encumbered for 1 year during which time the original owner may redeem the deed by paying the amount for which it sold at the tax sale, plus 18% per annum.
You will register to bid AT the auction. Not prior to the sale. Also you must attend the auction in person as they offer no bids by mail or phone.