It’s Important That You Understand This

… whether you’re an investor or a property owner.

Excess bidding at a the local (county) tax sale occurs when the bid exceeds the amount of taxes due. Interest is earned on the amount of the excess bid up to  15% of the value of the property.   Bidding can continue above that amount, but no interest is earned on the portion of the bid above  the 15% cap.

To the investor this means:  Any bid exceeding the 15% cap effectively lowers your yield.  Interpreted: A bid at 15% of value (or less) yields 12% interest.  A bid at 30% of value effectively yields 6%.

To the property owner this means:  The excess bid can significantly accelerate the interest accruing on your unpaid tax bill!