florida county held tax lien certificates

8/6/2019 Florida County Held Tax Lien Certificates

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FloridaFloridaCounty HeldCounty Held

Tax Lien CertificatesTax Lien Certificates



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In Florida, taxes become due November 1,

Nov 1st

Taxes Due



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and become delinquent if not paid by April 1 of the following year.

Nov 1st

Taxes Due

Apr 1st

Taxes

becomedelinquent



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The tax collector in every Florida county then prepares a list of the properties with delinquent

taxes and sends out notices to all propertyowners with unpaid property taxes stating thata tax certificate will be auctioned on or beforeJune1 if the taxes are not paid.

Nov 1st

Taxes Due

Apr 1st

Taxes

becomedelinquent

May-Jun

Lien Auction



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The tax certificate’s face amount consists of thesum of the following: delinquent real estate tax

(unpaid amount), interest (1.5% for each of themonths of April and May on the delinquentamount), Tax Collector’s commission (5% onthe delinquent amount), and the newspaper’s

advertising charge (& sale costs or other costs).Nov 1st

Taxes Due

Apr 1st

Taxes

becomedelinquent

May-Jun

Lien Auction



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Tax certificates are a first lien against propertywhich means there are very few other claims

against a property which would be paid beforethe tax certificate lien. It even supersedes someIRS liens.

Nov 1st

Taxes Due

Apr 1st

Taxes

becomedelinquent

May-Jun

Lien Auction



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Certificates that don’t sell at auction becomethe property of the County and are offered for

public purchase at a time and place announcedafter the auction ends.

Nov 1st

Taxes Due

Apr 1st

Taxes

becomedelinquent

May-Jun

Lien Auction

Jun-Sept

Liens

Available(OTC)



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A Lien Purchased In JuneTaxes = $100

Interest = 18% annual (1.5% per mo.)TC Fees = $ 5Ad Cost = $ 5Lien FV = $113

Nov 1st

Taxes Due

Apr 1st

Taxes

becomedelinquent

May-Jun

Lien Auction

Jun-Sept

Liens

Available(OTC)



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Lien holder's 18% annual interest begins themonth following the purchase of the lien.

Lien holder's 18% starts

Nov 1st

Taxes Due

Apr 1st

Taxes

becomedelinquent

May-Jun

Lien Auction

Jun-Sept

Liens

Available(OTC)



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A Lien Purchased In JuneInterest earned in July = 5%

Interest earned in Aug = 5%Interest earned in Sep = 5%Interest earned in Oct = 6%Interest earned in Nov = 7.5%

Lien holder's 18% starts

Nov 1st

Taxes Due

Apr 1st

Taxes

becomedelinquent

May-Jun

Lien Auction

Jun-Sept

Liens

Available(OTC)



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Two years from the date of the delinquency(April 1) but no longer than 7 years, the tax

certificate holder can request a tax deedapplication. This process starts the foreclosureof the property.

2 years from date of delinquency

Nov 1st

Taxes Due

Apr 1st

Taxes

becomedelinquent

May-Jun

Lien Auction

Jun-Sept

Liens

Available(OTC)

Request TaxDeed

Apr 1st

(2 yr anniversary)



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The earliest a lien holder can request a tax deeddepends on when it was purchased in relation

to the lien's tax deed request date.

Nov 1st

Taxes Due

Apr 1st

Taxes

becomedelinquent

May-Jun

Lien Auction

Jun-Sept

Liens

Available(OTC)

Request TaxDeed

Apr 1st

(2 yr anniversary)



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To foreclose the property, the certificate holder making application for a tax deed has to pay

the Tax Collector an application fee, a titlesearch fee and...

Nov 1st

Taxes Due

Apr 1st

Taxes

becomedelinquent

May-Jun

Lien Auction

Jun-Sept

Liens

Available(OTC)

Request TaxDeed

Apr 1st

(2 yr anniversary)



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...all amounts required for redemption or purchase of all other outstanding tax

certificates, interest, omitted taxes, anddelinquent taxes as well as applicable Clerk of Circuit Court fees, relating to the real estate.

Nov 1st

Taxes Due

Apr 1st

Taxes

becomedelinquent

May-Jun

Lien Auction

Jun-Sept

Liens

Available(OTC)

Request TaxDeed

Apr 1st

(2 yr anniversary)



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Application fee = $76Title search = $65

Clerk of Court fee = $400Back & current taxes = 2-3 yrs worth

Nov 1st

Taxes Due

Apr 1st

Taxes

becomedelinquent

May-Jun

Lien Auction

Jun-Sept

Liens

Available(OTC)

Request TaxDeed

Apr 1st

(2 yr anniversary)



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In most cases the property is scheduled to go tosale at public auction by the Clerk of Circuit

Court within 3 to 4 months from the date of thetax deed application. Holding the certificatecreates no advantage towards owning the property.

Time lien held by lien holder

Nov 1st

Taxes Due

Apr 1st

Taxes

becomedelinquent

May-Jun

Lien Auction

Jun-Sept

Liens

Available(OTC)

Request TaxDeed

Apr 1st

(2 yr anniversary)

3-4 mo.

Tax Deed

Auction



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The highest bidder becomes the owner of the property. If the property is a non homesteaded

parcel, the opening bid is the amount of thetaxes, accrued interest, plus costs and feesinvolved in a tax deed application.

Nov 1st

Taxes Due

Apr 1st

Taxes

becomedelinquent

May-Jun

Lien Auction

Jun-Sept

Liens

Available(OTC)

Request TaxDeed

Apr 1st

(2 yr anniversary)

3-4 mo.

Tax Deed

Auction



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Lien purchased = June for $113Request Tax Deed = Apr (2 yr anniversary)

Auction Held = JulyMonths Held Lien = 25 mo.Interest Earned = 37.5%Total Check = $155.38

Nov 1st

Taxes Due

Apr 1st

Taxes

becomedelinquent

May-Jun

Lien Auction

Jun-Sept

Liens

Available(OTC)

Request TaxDeed

Apr 1st

(2 yr anniversary)

3-4 mo.

Tax Deed

Auction




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Auction In JulyLien Investment = $155.38

Fees = $540Back & Current Taxes = $427Interest On Fees & Taxes = $43.52Minimum Bid = $1165.90

Nov 1st

Taxes Due

Apr 1st

Taxes

becomedelinquent

May-Jun

Lien Auction

Jun-Sept

Liens

Available(OTC)

Request TaxDeed

Apr 1st

(2 yr anniversary)

3-4 mo.

Tax Deed

Auction




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If it is a homesteaded property, the opening bidis half the assessed value plus the tax certificate

face value and costs.

Nov 1st

Taxes Due

Apr 1st

Taxes

becomedelinquent

May-Jun

Lien Auction

Jun-Sept

Liens

Available(OTC)

Request TaxDeed

Apr 1st

(2 yr anniversary)

3-4 mo.

Tax Deed

Auction



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Nov 1st

Taxes Due

Apr 1st

Taxes

becomedelinquent

May-Jun

Lien Auction

If the property does not sell, the tax certificateholder is required to take deed to the property.

Jun-Sept

Liens

Available(OTC)

3-4 mo.

Tax Deed

Auction

Request TaxDeed

Apr 1st

(2 yr anniversary)

florida county held tax lien certificates

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