Robert Diamond
Want to Stop Getting My Free Stuff? Unsubscribe Every day, the government quietly collects $13,698,630 on behalf of former homeowners who have defaulted on their property taxes through a "Tax Sale" or "Tax Auction". Basically, the government holds an auction to sell off properties on which the owner hasn’t paid taxes for a few years. Investors go to these auctions to bid and the property goes to the highest bidder. The amounts vary but often end up around 70% or so of the value. The funds from the investor pays off the tax lien but there is almost always surplus funds left over. A lot of surplus. Here’s a simple example: Let’s say someone didn’t pay taxes for 3 years and that they owed roughly $22,000 in back taxes and penalties on a $200,000 property. The property goes to auction and an investor "steals" it for $100,000. With me so far? The government uses $22,000 to pay off the tax due leaving an excess of $78,000. Here’s the simple question that launc