Posted by Courtney Lane on Wed, Jul 28, 2010 @ 03:15 PM
The upcoming tax sales in Missouri are on one the most overlooked sales in the country by the lien buying public.
We believe this is due to a huge misconception that only state residences of Missouri can bid in the sale. This is not true; however this urban legend has resulted in making Missouri much less competitive than other states. We view this as a great opportunity.
The Show Me State Details:
- Missouri Tax Sales take place each year in August.
- St. Louis City and Kansas City do not hold lien sales – they hold deed sales, the rest of the state holds liens sales.
- Missouri actually offers THREE different sales – the “regular” sale, a second offering sales and a third offering sale.
- The redemption period in Missouri is 2 years, however lien buyers entitled to possession after one year can collect rent.
- The bidding method in Missouri is the highest and best bid, meaning that the lien is sold to the individual willing to pay the most for the property.
- Full interest is earned on the full amount of the bid (including surplus and overbid).
Importance of Due-Dillegence:
As in all states, I cannot over emphasize the need for good due diligence. The lists published by most of the counties have no physical addresses for the properties, so it is necessary to get the situs addresses and determine location of the properties. Each of the cities, like all cities, have undesirable areas that you may want to avoid. The reason I say may, is that I have found that good properties in bad areas are not necessarily a bad investment.
If you would like more information about the Missouri tax sales work, click here and download our white paper on Missouri.