If you will bid at Pennsylvania tax gross sales you want to pay attention to the various kinds of deed gross sales which are carried out within the Commonwealth. Many Pennsylvania counties have two totally different tax gross sales which are dwell auctions; the “upset” sale, and the “judicial” sale. If tax sale properties will not be bought at both of those two gross sales, the property then goes on the “repository” record and could be bought by non-public bid.

Most counties may have an upset sale yearly within the fall. It is referred to as the “upset” sale as a result of the minimal bid for the properties on this sale is the “upset” worth – what’s owed for delinquent taxes from the county in addition to any municipal liens. If a property just isn’t bought on this sale, it then goes into the “judicial” tax sale which many counties will maintain within the spring. Not all Pennsylvania counties have judicial tax gross sales however all of them have an upset gross sales. The exception to that is town of Philadelphia which has redeemable deed gross sales. Town of Philadelphia has additionally just lately instituted an annual tax lien sale along with the redeemable deed gross sales. It’s my understanding that this has additionally been tried in a few the opposite main cities in PA, however I am undecided if they’re nonetheless promoting liens or have reverted again to deed gross sales like the remainder of PA.

What’s an Upset Sale Anyway?

What chances are you’ll not know concerning the upset sale is that every one properties are bought topic to any liens or judgments. That signifies that if you are going to buy a tax deed at this sale, you’re chargeable for another unpaid liens or judgments on the property. Most individuals assume that after they purchase a property at a tax sale, that they do not have to fret about different liens akin to a mortgage. This isn’t true on the upset sale. When you plan on bidding at any of those gross sales this fall, you’d higher do your homework!

So how do you discover out about different liens or judgments on tax sale properties? There are two ways in which you would do that; one goes to value you some cash and the opposite goes to take a few of your time. The primary manner is to rent a title search firm to do a easy title search on all the properties within the sale that you’re considering bidding on. This might change into a bit pricey, so it isn’t my technique of alternative. One more reason why I do not rent a title search firm to do title searches for me earlier than the sale is that most of the properties will come off the tax sale record the day earlier than or the morning of the sale. You might pay for a couple of title searches that you do not even want as a result of the properties that you just wished to bid on are now not within the tax sale.

That brings us to the second technique for locating out about liens and judgments on tax deed properties, and that’s to do it your self. There’s a little little bit of training and someday concerned, however it’s properly value it. In most states, to do this sort of analysis you’d go to the County Corridor of Information. In Pennsylvania the workplace that has the information that it is advisable search is the workplace of the Prothonotary. The folks on this workplace are often very useful and can assist you to search for what it is advisable know. You may need to search for liens and judgments by the identify of the proprietor. If there are co-owners or joint homeowners, you’ll want to search underneath each names. In some counties deeds and mortgages could also be filed by the county recorder and never the Prothonotary, so you will have to go looking the county recorder’s public information as properly. Some counties may have this data accessible on-line. For others you’ll have to go to the county recorder’s workplace and the Prothonotory’s workplace to look the knowledge up on their pc system.

Take into account, nevertheless, that if new liens weren’t but recorded they may slip by means of the cracks within the system and you will not be capable of discover them. There’s all the time a point of threat once you purchase a tax deed, even in case you are cautious and do your homework. That is why it’s all the time beneficial that you don’t purchase tax deeds in your personal identify, however within the identify of a separate entity. It may very well be a company or an L.L.C.

Discover out extra about Pennsylvania tax gross sales on this podcast episode that I did with Jeff Frantz of Tax Title Companies. You possibly can hearken to the replay at PA Tax Gross sales – Podcast Episode #91 at