Property Tax Liens In Minnesota
Property Tax Liens In Minnesota. Minnesota is a tax deed state.
Delinquent properties are forfeited to the state of Minnesota.
A list of forfeited properties is forwarded to each municipality for review.
The municipality decides if the property will go to public auction, adjacent owner sale (for non build-able properties), to the city for public use, or be held for further review.
Although the former owner has no more right to the property, some counties do allow the former owner to apply to repurchase the property.
All tax-forfeited land offered at a public auction is sold to the highest bidder.
The minimum bid is the appraised value of the property.
You must have earnest money in the form of cashier’s check or certified funds in order to bid. Some counties will finance purchases over a certain amount, although a deed will not be issued until the property is paid in full.
Properties not sold in the sale are offered over the counter. The price, however, remains at the assessed value of the property.
In addition to the bid amount, the purchaser must pay a 3% fee that goes to the state treasury. Minnesota tax sales are not such a great deal for the investor.
Bidding starts at assessed value of the property plus you have to pay an extra 3%.
You can finance it through the county, at a rate no less than 10%. And to top it off, the deed that you receive from the county is not a warranty deed – you may have to take legal action to get clean title to the property.
Many Minnesota counties, along with the state, list their forfeited tax parcels online. From the lists that I saw there are not 40 many good properties available. Most are vacant lots. The county treasurer conducts the county sales.