Property Tax Liens In Ohio
Ohio is another mixed state.
Most of the counties sell tax deeds, but some of them have switched over to tax liens.
Counties that sell tax liens have three different types of tax sales: tax lien sales, tax lien foreclosure sales, and tax foreclosure sales.
Tax Liens The county treasurer conducts tax lien sales. Even though the larger counties sell liens, their sales are targeted to institutional buyers not the individual investor.
They auction all available liens in a single block, which may have a purchase price of several million dollars.
The portfolio is awarded to the bidder who bids the lowest interest rate. Bidding starts at 18% and is bid down in ¼ percent increments.
There is a 1-year redemption period for a tax lien certificate and the certificate expires in 3 years. In order to redeem the lien the property owner must pay the lien amount, plus the interest that was bid, as well as a penalty of $150.00.
These tax sales are not open to individual investors. Like the tax sales in NYC they are only open to large companies.
If the property owner does not redeem within the 1-year redemption period, the holder of the tax lien certificate must foreclose before the 3-year expiration of the lien.
The county prosecutor’s fees for foreclosure are currently $2000.00 and the property will go to a foreclosure sale.
The certificate holder will only get the property if it does not sell at the foreclosure sale. Once the property is foreclosed, however the lien holder is entitled to 18% regardless of the interest that was bid at the sale. The lien holder will also be paid for foreclosure expenses and any subsequent taxes paid. Assignments of tax liens are allowed.
Tax Deeds Tax lien foreclosure sales are deed sales in which a previously sold lien is being foreclosed. The opening bid in a tax lien foreclosure sale is the amount due for the lien plus penalties, interest, foreclosure costs, and the cost of the sale. The property is sold to the highest bidder.
Tax foreclosure sales are foreclosure sales (deed sales) of properties on which the county, for some reason, did not sell a lien and the redemption period has run out.
These properties are also sold at auction to the highest bidder.
The opening bid is the amount due for taxes plus penalties and the cost of the sale. Contact information, sale lists, and assessment data can be found online for some Ohio counties.
Look on the county auditor’s website and the county treasurer’s website for information about tax lien sales. For tax lien foreclosure sales and tax foreclosure sales, try the county sheriff’s website as well