Georgia Tax Deeds and Foreclosures
As a Georgia Tax Deed Buyer, You Get One Of Two Results:
1. Redemption Of The Tax Deed In 12 months For 20% In Penalties
2. The Opportunity To Foreclose After 12 Months
Georgia Tax Deeds Yield 20% Penalty Return in 12 Months, or Less
The PIP Group also offers Tax Deed acquisitions in Georgia. Tax Deed acquisitions provide buyers the opportunity to earn 20% in 12 months or less, OR the ability to foreclose on the property at a fraction of its true value.
Every month, Georgia auctions off back taxes that are owed to the county. These taxes pay for things such as schools, fire departments, etc. Without the revenue, the counties cannot afford these essential programs. If a home owner fails to pay their tax bill, it eventually winds up being sold at auction.
HOW THE PROCESS WORKS
1) Assume home owner fails to pay their taxes of $5,000 on a property worth $100,000.
2) The county offers those taxes for sale at auction and sells the taxes for $50,000.
IMPORTANT NOTE: In the state of Georgia, the penalty is set at 20% and the winning bidder is who is willing to pay the highest amount for the tax deed. The amount above the original offer price is considered a “premium.” The property owner is responsible for paying the penalty of 20% on the total purchase price – not just on the original price offered at sale. This is further explained in Georgia Statute: OCGA 48-4-42.
3) By state law, the winning bidder receives a tax deed to the property (redeemable deed).
The home-owner has one year (from the date of purchase) to redeem the taxes.
4) The total cost to redeem is the total paid by the tax buyer, plus 20% in penalties.
$50,000 + 20% ($10,000) = Total Redemption Cost Of: $60,000
5) This amount is a PENALTY. Therefore, if the homeowner redeems the taxes the day after the sale, or 11 months after the sale, they still owe the tax buyer 20% in addition to their purchase price.
State Statute (OCGA 48-4-42): The owner, creditor (like a mortgage company), or any other person with interest in the property, must pay the tax deed purchaser the tax amount of the property paid at tax sale. Plus any taxes paid on the property by the purchaser after the sale, plus any special assessment on the property, plus a 20% premium for the first year or fraction of a year, and a 10% premium of the amount for each additional year or fraction of a years, which has elapsed since the date of sale.
Important links and resources for Georgia tax deed and foreclosure information