Missouri Tax Lien sales

Missouri Tax Lien Auctions
The annual tax lien sale for the state of Missouri is held on the fourth Monday of August. For 2010 that will be August 23rd. The advertising for all properties subject to this sale is done for three consecutive weeks prior to the sale. In my county the advertising this year was published on July 23rd, July 30th and August 7th. Missouri pays ten percent interest on the amount of the tax lien. Buyers at the auction can bid above the delinquent tax amount with the lien going to the high bidder on the property. The tax lien buyer does not receive interest on the amount over the lien amount. For example if the tax lien amount was $2,500 but the buyer bid $4,000 to buy the lien and the owner redeemed after six months, the lien holder would received $125 in interest ($2,500 x 10% x one-half a year). That would reduce their return on investment to 6.25%. If the owner does not redeem the property by paying the back taxes and penalties in one year, the county will issue a tax deed to the tax lien buyer. The deed can be filed and the property now belongs to the tax lien purchaser. The tax deed does not convey insurable title so the new owner will still need to do a quiet title suit to get insurable title to the property. The process is fairly straight forward but be sure to get sufficient legal support to be sure you are completing all the requirements of the state.