: You are buying a certificate of debt . You earn interest (often 8%–24%), and you only get the property if the owner fails to pay you back and you complete a separate foreclosure process. 3. Essential Due Diligence
When property taxes remain unpaid for a "redemption period" (typically 1–3 years), the local government forecloses and auctions the property to recoup the debt.
: You are buying the property . You become the owner immediately, though some states have post-sale redemption periods. buying tax deeds
: Usually covers back taxes, interest, penalties, and administrative costs.
Because tax deeds are sold "as-is," you assume all risks associated with the property's physical and legal state. : You are buying a certificate of debt
Buying Tax Deeds: A Guide to Acquiring Real Estate at Auction (2026 Edition)
It is critical to distinguish between these two "tax" investments: Essential Due Diligence When property taxes remain unpaid
: Conducted at the county courthouse or via online platforms like RealAuction or Grant Street Group.