Welcome to another episode of AskAlHow. I’m your host Allan Susoeff. This video is part of my series where I explain the methods and procedure for Tax Sales in each state. In this post, I will discuss Delaware Tax Sales.
This post features Delaware Tax Sales Explained, A video posted on YouTube on April 12, 2020.
Delaware Tax Sales Explained
Delaware is a Hybrid State. That means you thought deed state that operates much like a lien state. They have a 60 day redemption period and their auctions in all three counties are run by Premium Bid. Perhaps one of the greatest things about DELAWARE is that its interest rate is not an interest rate it’s a penalty. It’s 15% straight across the board. That means if the person redeems in a month you get 15% or h he drags his feet and waits two months you still get 15%. That means the annual rate of return is 90% in the first 30 days and 60% in the next 30 days.
The only negative thing about Delaware is the fact that only has three counties. I would love to see auctions and rules like they have nationwide. The auctions are done by the county sheriff and Conveyance after the 60 day redemption period is by petition to the County judge.
The timing is monthly as needed for each county and even though they don’t have over the counter sales I still give this state a 4 out of 5.
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.