This post features Connecticut Tax Sales Explained, A video posted on YouTube on April 13, 2020.
Connecticut Tax Sales Explained
Connecticut is a deed state however the sales work very much like a lien state. We call these hybrid states. As soon as an owner is late of course the lien is filed after the tax sale, deeds are executed, however, they are not recorded during the Redemption Period.
Connecticut Tax Sales have a six month redemption period. In auctions are done on a Premium Bid auction type. The interest rate is 18%. The most important thing to note about Connecticut is that like many northeastern states, their auctions are done by municipality, not by County. There’s a total of 62 municipalities that run auctions in the state of Connecticut. Deed to become free and clear after the six-month redemption. And the timing for the auctions is in June.
The only potentially negative thing about Connecticut is that some of the municipalities may only offer deeds in bulk purchases meaning several deeds at once which of course would cut out the small investor. Also they don’t offer any sort of over-the-counter purchasing. Still with all that I give Connecticut 4 out of 5 stars.
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Interested in Tax Sales in Another State?
Tax Sales investing is a niche that has the potential to be insanely profitable.
However, most investors do not have a deep understanding of this investing strategy.
Every state has a unique set of rules and regulations. There are some basic rules you need to understand as to how the process works. Generally, states will fall into one of three categories:
- Tax Lien States
- Tax Deed States
- Hybrid States
Hybrids are states who conduct their tax sales by selling tax deeds with a caveat. The deeds have a redemption period much like a tax lien certificate.
This map provides links to information for every state as well as Washington DC.
