Tax Lien Information
Tax Lien Auction
You are not purchasing the property but a tax lien against the property in the amount of all taxes, interest, penalties, fees, and cost due on the property, origination cost, auction fee, and certificate fee. Your Certificate of Purchase will entitle you to first right of refusal to purchase the lien at the same interest rate on the property the next year if the property comes delinquent. Interest continues until the lien is redeemed or a foreclosure action results. You are advised to investigate, prior to purchasing, to determine whether the property would be of sufficient use or value to you should you be fortunate or unfortunate enough to be in a position to obtain a deed at some future date.
In the event of bankruptcy proceedings subsequent to the sale of the lien, there is no guarantee that the purchaser of the tax lien will receive the anticipated interest or any interest whatsoever, which determination will be made by the United States Bankruptcy Court.
If it is determined that the tax lien for which you have submitted payment is unavailable for any reason, your payment will be refunded to you without interest.
Interest stops on the day of redemption.
Research and Purchase Procedures
You are advised to research parcel genealogy and tax status prior to purchasing.
In order that Shelby County may report interest received by certificate holders in accordance with Internal Revenue Service regulations, this office is required by the I.R.S. to obtain the tax identification number of the purchaser at the time of purchase of the tax lien. Processing of your certificate will not begin until a proper W-9 form is received.
The lien bears interest at the bid rate from the first day following the purchase of the tax lien.
There is an endorsement fee of $5.00 for each certificate
Pre-sale Requirements for the Auction
Our tax lien auction is online, you may register as a bidder by going to www.govease.com. After registration, you must still arrange payment and let the Property Tax Commissioner Office know the amount of your projected investment to submit for approval. This must be done prior to any bidding. Bidder registration cutoff is 4:30 p.m. the day before the Tax Lien Auction. The Tax Lien Auction begins at 8:30 a.m.
Bid Procedures for the Auction
Each bidder will be assigned a number for use during the bidding process. ALL SALES ARE FINAL!
The successful bidder will pay the entire amount of taxes, interest, fees, penalties, and cost associated with the parcel as of the day of auction. The bidder must pay with guaranteed funds no later than one hour before close of business of the property tax office on the day of the auction.
Bid Interest for the Auction
Bids are awarded on the lowest interest rate bid.
1. The maximum bid is 12% simple interest per annum prorated monthly. The lowest acceptable bid is 0% per annum.
2. The bid will determine the rate of interest to be paid on the Certificate of Purchase, representing the amount of taxes, interest, fees, penalties, and cost associated with the parcel as of the day of auction.
Redemption of Liens
Upon redemption of the Certificate of Purchase on the property, the investor receives their money back plus interest at the rate they bid at the auction or sale. Interest starts accruing on the first day after the Tax Lien Auction.
Liens may be recorded in the probate office.
Tax Lien Expiration
If a tax lien is not redeemed and the purchaser or purchaser's heirs or assigns fails to commence an action to foreclosure on or before ten years from the date of purchase, the certificate of purchase will expire and the lien is void. Act 2018-577.