Last Updated on September 8, 2025
“Houses that go to tax sales are only worthless.…”
However, the reality is that various houses go to tax sales for many reasons.
“I’m not wasting my money on junk, there’s nothing good out there…” Many people say that houses go to tax sales only if they are of no value.
“All the good properties never make it to the sale…”
Yup. I’ve heard them all… All the excuses for not getting started with Tax Lien & Deed investing…
Table of contents
Many people think that homes at a tax sale are old, empty or worthless. That idea is wrong. Counties use tax sales to collect unpaid property taxes so they can pay for schools, roads and parks. When a homeowner misses tax payments, the county can put a claim on the house and sell that claim at auction. While some tax sale houses need work, others are nice homes whose owners simply forgot to pay or faced hard times. By learning why houses go to tax sales and how to check them, you can find good opportunities and avoid mistakes.
Why Do Houses End Up at a Tax Sale?
Unpaid property taxes
Every homeowner must pay property tax based on a value set by the county. This money pays for public services. Some people pay taxes through a bank account that collects the money from their mortgage. Others have to pay the tax bill on their own. If the tax is not paid, the county places a claim on the property, and that claim can be sold at auction to recover the money.
Life events and money problems
Sometimes owners stop paying taxes because of events in their lives. The owner might pass away, and family members may not know there is a bill due. Divorce, losing a job, or large medical bills can also cause missed payments. Some owners think their mortgage company is paying the taxes when the account was closed or did not have enough money. These reasons can cause well‑kept homes to appear on a tax sale list.
Mistakes and miscommunication
Counties can make errors, too. Tax bills might go to the wrong address, or a computer system might miscalculate the amount. Counties usually send several notices and give owners a chance to pay before the sale. If the owner does not see these notices, the property goes to auction. Mistakes like these sometimes put nice houses on the tax sale list.
Types of Houses Sold at Tax Sales
Tax sales offer more than empty lots or abandoned houses. Here are common types of property you may see:
| Type of property | What it is | Why it goes to tax sale |
|---|---|---|
| Single‑family homes | The landlord missed notices, or the rental income dropped | Owner missed taxes due to death, illness or confusion |
| The landlord missed notices or the rental income dropped | Big or high‑value houses | Money problems, estate issues or confusion with the mortgage company |
| Multi‑family units | Duplexes or small apartment buildings | The business closed, or the owner filed for bankruptcy |
| Vacant land and lots | The business closed or the owner filed bankruptcy | Owner moved away or cannot pay taxes |
| Commercial buildings | The business closed, or the owner filed bankruptcy | The business closed, or the owner filed for bankruptcy |
Every state has its own rules on when and how these properties are sold. Some places sell only the tax claim; others sell the house itself. Most states give the original owner time after the sale to pay back the taxes and get the property back. This time is called the redemption period.
How to Check a Tax Sale Property
Smart investors do their homework before bidding. They look at each property to avoid costly surprises. Here is a simple process you can follow:
| Step | What to do | Why it matters |
|---|---|---|
| 1. Pick the type of property | Decide if you want a house, land or a building | Different types need different budgets and plans |
| 2. Get the official list | Records show whether there are other debts or mortgages | Official lists are more accurate than third‑party websites |
| 3. Look up public records | Use the parcel number to find the owner’s name, property value, description and any other claims | Records show if there are other debts or mortgages |
| 4. Drive by the property | Visit the property from the street, take photos and check if it is empty or occupied | Houses that need repairs or are occupied may cost more to fix or clear |
| 5. Plan your costs | Add up taxes, interest, repairs and legal fees | Extra costs can reduce your profit |
| 6. Be ready to bid | Bring the right payment method and understand the rules | Counties often require payment on the spot |
Using a Parcel Finder App
Use a parcel finder app to see property lines and owner details while driving around. Apps like LandGlide, MapRight or Parlay use GPS to show parcel boundaries on a map. You can enter an address or tap on the map to see who owns the property, how big it is and other details. This helps you check if the empty lot you see is the same one listed in the tax sale and how it relates to neighbouring properties.
Here is how to use a parcel finder app:
- Install and open the app
on your phone. Many offer free trials.
- Search for the property
using the address from the tax sale list or let the app use your current location to display nearby parcels.
- Select the parcel
to view boundaries, size and owner information. Compare this with official county data.
- Save or screenshot
the information for later. Some apps let you export parcel data to spreadsheets.
- Stay on public roads
Do not trespass. Use the app to view from a safe place.
These apps help you avoid buying the wrong lot or a parcel without road access. They make it easier to understand the size and shape of the property. Always double‑check the app’s data with county records, especially for expensive properties.
Final Thoughts
Tax sales are not just for rundown houses. Many good homes and valuable lots are sold when owners miss tax payments because of hardship or simple mistakes. Each state has rules on how these sales work, so learn your local laws. By doing research and using tools like parcel finder apps, you can find good deals and avoid problems. Remember that owners may still have time to reclaim the property, so plan for that when you invest.
FAQ
A nice home can end up on the tax sale list because the owner passed away, had medical bills, went through a divorce or simply thought someone else was paying the tax. Sometimes the county sends bills to the wrong address, and the owner never sees them.
Contact your county treasurer or tax collector and ask for the official list of properties that will be auctioned. Many counties publish these lists in newspapers and on their websites. You can also check public records and use parcel apps to learn more about each property.
A parcel finder app uses GPS to show property lines and ownership information on your phone. It helps you see the exact size and shape of a property, who owns it and how it sits compared to neighbouring parcels. This reduces the chance of buying the wrong lot.
In most states, owners have a set time after the sale to pay back the taxes, interest and fees to get the property back. This time can be a few months or a few years, depending on state law.
Not always. Some tax sale properties need expensive repairs or have other debts attached. It is important to check costs and legal issues before you bid. Good deals exist, but careful research is key.
WARNING: The house in this video is REALLY NICE, and GIGANTIC. Full Disclosure, it’s not what you see 100% of the time, but we do see it, so keep that in mind. Remember, sometimes even great houses go to tax sales.
Also, the guys share a quick little tip halfway through that will change the way you drive and find properties and parcels of land.. FOREVER. So don’t miss that little tip. (HINT: It’s around the 45-second mark)
-Dustin
PS: I made a little getting-started playlist for you over on our YouTube channel, so don’t forget to check that out while you’re at it!
